(e) none of the above, or, more precisely, it depends.
Pullbacks to the neckline are very common in H&S
patterns. Bulkowski, in preparing his Encyclopedia of
Chart Patterns, found them in 45% of such patterns,
and they do not in any way negate the pattern.
The possibility remains, however, that the pattern could
be negated by a sustained move ABOVE the neckline. What
exactly constitutes a sustained move is obviously open to
interpretation, But, with a pattern of this duration I
would look for a clear indication that an uptrend is
occurring above the neckline, perhaps a series of
increasingly higher closes above it, or something along
those lines.
FWIW, here's my chart of the H&S:
stockcharts.com[g,a]maclynay[pf][J5062179,Y]&listNum=46 |
