Volume favorably accumulates
Posted 16 September 2011 - 11:17 PM
Posted 17 September 2011 - 03:33 AM
Unfortunately, I have less faith in Bob Prechter (because of his past calls) but his points in this video are very very valid. We cannot deny the validity.
Posted 17 September 2011 - 06:25 AM
Pretcher certainly applies his artistic license liberally. Highest volume at the head is incorrect. Stockcharts.com shows this example. Note that the left shoulder has the highest volume, and the next two volume tops slant downward from there.
And what's with his mix of Dow Jones price and a moving average of NYSE volume? There's no H&S shape whatsoever on the NYSE, btw. If one wants to mix and match to show a H&S, at least try to show an actual classic formation. And whoops, this example didn't work out for the classic outcome...
I meant to post this at the height of the recent "head and shoulders volume confirmation" debate, but it slipped my mind until now.
Textbook H&S pattern with all the necessary volume confirmation
Posted 17 September 2011 - 11:29 AM