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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (24419)	6/18/2000 7:22:00 PM
From: Robert Graham	Respond to of 42787

I find chart patterns to be much more accurate than stated in books if one knows how to assess them in the market that is currently trading and manage trades based on them. There is no "black and white" in the case of chart patterns. I wish life could be that simple. But it is not. I find the H&S pattern very frequently means a move in the anticipated direction where the pattern does trigger. This can be good enough for a scalp or longer, depending on the time frame it shows up in. If the market is a running market, and the H&S shows up in the shorter time frames where the market is operating in, for example the 5-min time frame which I trade from frequently, I find H&S to have a high degree of accuracy including price moving all the way to its target. Now if after triggering, price then reverses and heads the other direction, it can even move more strongly and follow through more. The trick is to catch the price reversal that occurred. There are also other patterns like the H&S that ahve a neckline. One is the "Three Little Indians" pattern, and others that I have come across. So there is an entire class of neckline patterns that is worth noting on the chart. Bob Graham