Discussion in 'Trading' started by Harry123, Jan 5, 2008.
yeah Joab, i like his posts... simple approach to looking at charts and makes money too.
The neckline above broke in early-November around 33.25 and not where the poster has indicated on the chart.
Are you the king of all neckline breaks or something?
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!
another candidate is MLNM -- and I think the volume picture comes closer to the textbook examples
To Landis82: I agree it broke earlier. The 2 week shelf late Oct into early Nov was the early breakdown of most of the H&S their talking about just now. agpilot
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