Monster in the making?

Rickshaw Man · Jun 25, 2005

Might want to keep an eye on this over the next 6 months or so, possible monster head and shoulder pattern

NihabaAshi · Jun 25, 2005

Quote from Rickshaw Man:

Might want to keep an eye on this over the next 6 months or so, possible monster head and shoulder pattern

Head and Shoulder pattern already formed.

The question is will there be further downside to anyone's profit targets to turn into that big downtrend (monster) that I've recently seen in discussions online.

The right shoulder got bearish confirmation 2 weeks ago and has already reach what I call profit target 1 area via price action based on June 24th Friday close.

Further, as it nears its so called neckline price area which is an area beyond my chase range but an area where many (sellers) will try to jump on the band wagon...

We'll probably see more talk here at ET about the Head and Shoulders pattern if it reaches the neckline price area.

NihabaAshi

murray t turtle · Jun 25, 2005

Quote from Rickshaw Man:

Might want to keep an eye on this over the next 6 months or so, possible monster head and shoulder pattern

=======
Rick shawman;

Its near kin QQQQ looks similiar;
6 month candlechart =down
12 month chart =down
seasonals favor =down
see what happens at 36 .75 area of 50 day moving average /bull market.

Slim Harpo · Jun 25, 2005

Quote from Rickshaw Man:

Might want to keep an eye on this over the next 6 months or so, possible monster head and shoulder pattern

While I can see the chart, I can't make out any of the writing so could you please tell me what that chart is of?
thanks..

SethArb · Jun 25, 2005

all I see if cubes in trading range for 1-2 yrs

jsmith · Jun 25, 2005

If you click on the picture once, it will zoom in. Picture of NQ weekly chart.

Quote from Slim Harpo:

While I can see the chart, I can't make out any of the writing so could you please tell me what that chart is of?
thanks..

Kicking · Jun 25, 2005

H&S is one of the least reliable pattern IMO, I think it's been tested and it's not a whole lot better than a coin flip, but yes it could be forming a H&S , doesn't mean we'll go straight down once it's completed.

duard · Jun 25, 2005

Don't H & S work well for individual stocks and not so well for the indexes?

swoop[TR] · Jun 25, 2005

Quote from Kicking:

H&S is one of the least reliable pattern IMO, I think it's been tested and it's not a whole lot better than a coin flip, but yes it could be forming a H&S , doesn't mean we'll go straight down once it's completed.

I definitely disagree with that... But it also depends what you categorize as a head and shoulder... The graph as posted does not work as a head and shoulder in my opinion. While there may be a left shoulder and a possible right shoulder, the neckline isn't straight and the levels are all over the place, the pattern isn't good enough to warrant trading off of. That is my opinion; I have been very successful calling head and shoulder and they have been at least 70% successful.

Lucrum · Jun 25, 2005

http://www.enthios.com/Lessons/PatternsPrimer/patterns.htm#Head&ShouldersTops

According to Bulkowski the H&S pattern only fails 8% of the time making it one of the more reliable patterns. For those unfamiliar he did an objective systematic study of patterns. I will say that as far as I know he only studied individual stocks and not stock indexes. As far as the neckline it can be sloped up or down in addition to horizontal and still work.
Necklines that are horizontal or upward sloping work slightly better but there is not a big difference.

Monster in the making?

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