In the process of learing to identify a head/shoulders top Im thinking this one does not show a clear enough uptrend prior to the Oct/Nov pattern Any comments?
should have included this chart as well Im not sure I could call this stock in a meaningful uptrend in the period June/October thats really my question
Personally I find H&S only form at Highs. If a pattern looks like an H&S but the market is not at its high point then odds on its not a H&S. As for HSTX I would put it in a Triangle pattern unless it broke that last swing low point labeled C.
Mup Thanks for the post and the insight This is all about interpreting the chart correctly in context after all A point of clarification When the 'market' is at its high? (ie the index) or the particular 'stock' is at its high? thanks again
Mup - a cool example Thanks! Do you use any particular tool or service to locate meaningful patterns? Just curious
We were discussing H&S patterns in real time on the Elliott Wave Thread a few weeks ago. We were on the 5min ES ( S&P 500 Emini) and its quite a good example on why I only use H&S patterns that form at tops.
Mup has done an excellent job analyzing HSTX, which used to be Stratex (*STXN ) ten years ago . . . They make Microwave Radios which isn't much of a "barn-burner" growth product; hence the trading range of between $16-$20. There is no head and shoulders TOP in this stock chart over the past year. This stock is like watching paint "dry". Sorry.