Hi Guys,
I just learned from safehaven that the mighty dow industrial formed a head and shoulders top.
http://www.safehaven...rticle-9154.htm
What do you guys suggest I should do?
Best,
G.
head and shoulders top for dow industrial
Started by
greenie
, Jan 05 2008 06:29 PM
5 replies to this topic
#1
greenie
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Posted 05 January 2008 - 06:29 PM
It is not the doing that is difficult, but the knowing
It's the illiquidity, stupid !
It's the illiquidity, stupid !
#2
selecto
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Posted 05 January 2008 - 07:45 PM
You write Safehaven and tell them that any discussion of that pattern without a volume analysis is worthless.
#3
fib_1618
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Posted 05 January 2008 - 08:27 PM
Thank you.You write Safehaven and tell them that any discussion of that pattern without a volume analysis is worthless.
Fib
Better to ignore me than abhor me.
“Wise men don't need advice. Fools won't take it” - Benjamin Franklin
"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw
Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.
#4
AChartist
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Tim
Posted 05 January 2008 - 11:59 PM
Many failed stocks had apparent reverse head and shoulders that did not
meet volume requirement, this is one common signature in this market.
Don't trust any reverse head and shoulders.
"marxism-lennonism-communism always fails and never worked, because I know
some of them, and they don't work" M.Jordan
#5
kc135a
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Posted 07 January 2008 - 01:10 AM
Hi Guys,
I just learned from safehaven that the mighty dow industrial formed a head and shoulders top.
http://www.safehaven...rticle-9154.htm
What do you guys suggest I should do?
Best,
G.
Neckline should not be ascending for a bearish H&S plus the other good stuff indicated by others.
May happen, but the pattern is not complete.
Check out the 1989/1990 DOW for a comparison.
KC
#6
kwest
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Posted 09 January 2008 - 09:47 PM
I'm confused by the remarks saying that the recent H&S patterns don't have volume confirmation.
If you use OBV or Chaikin Money Flow as a volume indicator, the DJIA (below) shows higher volume as the left shoulder is built (vs. the head). It also shows volume as the right shoulder (and right of head) is completed.
http://stockcharts.com/c-sc/sc?s=$INDU&p=W&b=7&g=0&i=p04110007891&r=9452.png
Am I missing something on this? Or do you have to stick with raw volume data?
If you use OBV or Chaikin Money Flow as a volume indicator, the DJIA (below) shows higher volume as the left shoulder is built (vs. the head). It also shows volume as the right shoulder (and right of head) is completed.
http://stockcharts.com/c-sc/sc?s=$INDU&p=W&b=7&g=0&i=p04110007891&r=9452.png
Am I missing something on this? Or do you have to stick with raw volume data?
When in doubt, cash it out.
