Dow Weekly H & S Pattern Broken to Downside
- Thread starter Harry123
- Start date
Since Im a recent student of the charts I'd like to offer my 2 cents
(Disclaimer: new at this)
I'm also not disputing the general observation that there are ugly (bearish) signals all over the place -- - simply dissecting the chart in a bit more detail to improve my own understanding
Volume: From my reading of Shabacker I believe the shoulders and the top should occur on higher than normal volume.
It appears that in the $INDU weekly chart the volume is actually somewhat lower on the the days when we reached the left shoulder and the top
My understanding is that higher volume speaks to an 'exhaustion' of buying interest--- which is what gives the pattern strength
Also --- the neckline appears to me to be around 12,800 --- assuming the lows used to draw the neckline are closing prices
if so - and we touched 12,800 on Friday --- we did so on low volume -------- so monday ought to be interesting
One other observation -- a couple of weeks back I posted a question asking for examples of H/S tops --- the general response was 'havent seen one lately'
it appears now they are avaialable in abundance!
(Disclaimer: new at this)
I'm also not disputing the general observation that there are ugly (bearish) signals all over the place -- - simply dissecting the chart in a bit more detail to improve my own understanding
Volume: From my reading of Shabacker I believe the shoulders and the top should occur on higher than normal volume.
It appears that in the $INDU weekly chart the volume is actually somewhat lower on the the days when we reached the left shoulder and the top
My understanding is that higher volume speaks to an 'exhaustion' of buying interest--- which is what gives the pattern strength
Also --- the neckline appears to me to be around 12,800 --- assuming the lows used to draw the neckline are closing prices
if so - and we touched 12,800 on Friday --- we did so on low volume -------- so monday ought to be interesting
One other observation -- a couple of weeks back I posted a question asking for examples of H/S tops --- the general response was 'havent seen one lately'
it appears now they are avaialable in abundance!
another candidate is MLNM -- and I think the volume picture comes closer to the textbook examples