Gargantuan Head and Shoulders Top in the Dow - Dow 2000 target

[dasenbrj]

The Dow in completely doomed. The neckline is around 8,000, top of head is around 14,000, which would put the minimum price target at 2000.

I jest. No worries, the pattern failed, this chart goes to 2010. But seriously, what part of this is not legit? I am just starting to work on my CMT materials and therefore not an expert on H&S patterns, but (other than volume) it seems a lot like one.

Of course, it has not broken the neckline, so it could only be a tentative pattern. But what else is missing?

 

[bond_trad3r_II]

The Dow in completely doomed. The neckline is around 8,000, top of head is around 14,000, which would put the minimum price target at 2000.

I jest. No worries, the pattern failed, this chart goes to 2010. But seriously, what part of this is not legit? I am just starting to work on my CMT materials and therefore not an expert on H&S patterns, but (other than volume) it seems a lot like one.

Of course, it has not broken the neckline, so it could only be a tentative pattern. But what else is missing?

I'll believe it when I see a throwback. If we get down to 8,000 again in the near future, you may be on to something.

 

[Clubber Lang]

Bollinger bands, oscillators, 10-20-50-200- (pick your number) moving averages, Elliot waves, MACD, RSI, etc etc
Chart "patterns"- head and shoulders, cup and handle, flags, pennants, reversals, double top/bottom, support/resistance, doji, shooting stars, blah blah blah.

All of it is great IN HINDSIGHT.

Some TA was useful "back in the day", but against today's HFT algo's and nonstop government intrusion into the "free markets" it's pretty worthless (as your "massive head and shoulders" chart proved).

 

[badnewsbear]

Ok, good luck shorting the DOW to 2000 with the 0% fed funds rate, with the lax monetary policy, and with the FED supporting the economy. You are betting against the FED. So, good luck with that. Honestly, I wish you luck.

 

[actionzip54]

Oh the humanity!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[toc]

while possibilities are there for H&S but to try to predict the pattern and take positions before hand is a ..........................risky business.

good observation though !! would watch it with intent and.............fear !!

 

[nazzdack]

----The Dow in completely doomed.
----what part of this is not legit?
----CMT materials....
----what else is missing?

1) Nobody cares about the CMT. :eek:
2) What are you missing? ...... A lot of anti-dandruff shampoo.

 

[kut2k2]

CMT is mostly a scam. You spend a lot of time and money to learn a lot of worthless bull like head-and-shoulders. The TA that works isn't going to be found in books, seminars or "trading system" crapware. The TA that works is the stuff you design yourself from the ground up.

But apparently enough financial honchos have bought into the CMT bullshit for it to be marketable.

 

[ammo]

patterns give you a maybe where there wasnt one before,there are sites that keep track of percentages,everything is just putting on a bet,same as a horse track or a college game, you bet the one with the highest odds of being right,here are a couple in apple,first one didnt play out, 2nd one has better odds because its more realistic but still not high odds
http://thepatternsite.com/id75.html

 

[smallStops]

Bollinger bands, oscillators, 10-20-50-200- (pick your number) moving averages, Elliot waves, MACD, RSI, etc etc
Chart "patterns"- head and shoulders, cup and handle, flags, pennants, reversals, double top/bottom, support/resistance, doji, shooting stars, blah blah blah.
All of it is great IN HINDSIGHT.
Some TA was useful "back in the day", but against today's HFT algo's and nonstop government intrusion into the "free markets" it's pretty worthless (as your "massive head and shoulders" chart proved).

Looks like someone has done a "state of the art" of traditional technical analysis.
Now just a question : how many times have you traded just one and only one thing? There are some traders out there "killing it" with simple moving average crossovers...
but it took them a lot of "elbow sweat" to get there... a simple moving average crossover strategy...