This is actually rather similar to the action in the S&P as it moved from 1550 to 1100's... essentially a couple of head and shoulders nested in each other... look at a chart of SP 500 from 2006 to 2008... go to bulkowski patterns in my links... you will see head and shoulders considered a very reliable pattern... the trick is you have to wait for breakdown through the neckline retest and fail to profitably trade them... for now this is just a guideline to follow assuming a price decline...
I don't know about this one. Most of your charts I can say, "Yeah, OK, I can see that" but this one looks like a bit too much conjecture...
ReplyDeleteThen again, I never was a fan of head & shoulder patterns...
This is actually rather similar to the action in the S&P as it moved from 1550 to 1100's... essentially a couple of head and shoulders nested in each other... look at a chart of SP 500 from 2006 to 2008... go to bulkowski patterns in my links... you will see head and shoulders considered a very reliable pattern... the trick is you have to wait for breakdown through the neckline retest and fail to profitably trade them... for now this is just a guideline to follow assuming a price decline...
ReplyDeletethanks for checking out the blog...
In effect you're seeing a series of bear flags leading the market down in a stepwise fashion.
ReplyDelete