Monster in the making?

Discussion in 'Technical Analysis' started by Rickshaw Man, Jun 25, 2005.

  1. Might want to keep an eye on this over the next 6 months or so, possible monster head and shoulder pattern
  2. 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.

  3. =======
    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.
  4. 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?
  5. all I see if cubes in trading range for 1-2 yrs

  6. jsmith


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

  7. 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.
  8. duard


    Don't H & S work well for individual stocks and not so well for the indexes?
  9. 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.
  10. Lucrum


    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.
    #10     Jun 25, 2005