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I don't think that Bill was saying that this is absolutely a H&S
formation. I read it that this just looks like a H&S formation. With
the holidays and all, volume can be misleading. This mini head and
shoulders formation as I see it may well be the crown on the head of
a much larger H&S formation. Yes, novice traders should'nt bet the
farm, but a failure here would be telling.
Prosper
--- In realtraders@xxxxxxxxxxx, "Earl Adamy" <eadamy@xxxx> wrote:
> I've previously reminded TBT of the required qualifications for a
H&S with E&M and Curtis Arnold references to proper identification of
H&S patterns but he keeps throwing these things up as H&S. For the
benefit of new traders on the list who pickup such misinformation and
try to use it to their financial peril, I have attached a GIF which
shows what disqualifies this as a H&S. The idea is simple - high
volume on the rally into the left should indicates buying while low
volume on the rally into the right shoulder indicates lack of buying.
Finally, the pattern here is much too abbreviated (too few bars) to
qualify as a H&S.
>
> Earl
> ----- Original Message -----
> From: Don Ewers
> To: realtraders@xxxxxxxxxxx
> Sent: Wednesday, January 10, 2001 3:45 PM
> Subject: Re: [RT] H&S on the Bonds
>
>
> Bill,
> I noticed that too, but as another astute investor (Earl) saw the
volume on the right shoulder is larger than on the left, so be
careful about this "topping pattern" and getting too bearish. Could
just be a minor wave 4 of big wave 3 (not a big wave 4) in a
continuation pattern? Minor 4's screw more trades up, I have learned
to respect them (Vs predicting a big wave 4).
> don ewers
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