I'd be remiss if I didn't show this...but I post it not only to show what the inverted H&S target is (2235/37 but where the pattern could fail... total failure would becoming back below neckline.
I'm looking for a substantial top here......but we have to respect these patterns until they fail and prove themselves as bull traps...or they go to target...I point to FXI for example..hasn't failed yet....the majority thought it was cooked (including me) before it took off over 118.
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I still like the 1533/39 area on spx to get hit on a pull back and see if she holds...measured move on the inverted pattern is 1590 area.
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Compq....another chart that colours me neutral on the short to intermediate term....
I've just snugged the .618 retrace under the Aug 04 low to see where the top came out...makes a decent target on another push ...also at the top of a possible channel and an old support line.
Note similar divergent pattern on NASI weekly as going into the 04 top.
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Colour me neutral for short to IT.
Started by
eminimee
, Jul 17 2007 07:18 AM
4 replies to this topic
#1
Posted 17 July 2007 - 07:18 AM
#2
Posted 17 July 2007 - 10:20 AM
Don't mean to criticize you Tea (you are VERY good) but I thought that an inverse/reverse(???) head and shoulders must be preceded by a decline to be valid. We have a rise preceding this formation. Don't have a copy of McGee and Edwards so I'm recalling from old old memories.
History always repeats . . . only the details change.
#3
Posted 17 July 2007 - 10:48 AM
I don't follow ?...but let me try and answer if I think I know what you mean....
on the spx inverted H&S on the hourly....the decline was into a 4th wave low..marked as the "head"
..on the ndx inverted H&S on the weekly...the decline was into the 2006 low...marked as "head"
..other than that...I don't know what you mean.
#4
Posted 17 July 2007 - 11:27 AM
I don't follow ?...but let me try and answer if I think I know what you mean....
on the spx inverted H&S on the hourly....the decline was into a 4th wave low..marked as the "head"
..on the ndx inverted H&S on the weekly...the decline was into the 2006 low...marked as "head"
..other than that...I don't know what you mean.
I was referring to the hourly H&S where you mentioned "measured move on the inverted pattern is 1590 area". I know you are looking for 1539 and I may have misinterpreted what you meant about the H&S. If so, sorry about that.
History always repeats . . . only the details change.
#5
Posted 17 July 2007 - 03:04 PM
I was talking 1533/39 as a pull back to test the neckline before heading up to 1590 measured move....
....that's if that particular scenario plays out....coming back below neckline is bearish and maybe signaling a failed pattern.