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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (122319)	7/26/2005 5:41:12 PM
From: skinowski	Respond to of 209892

AJ, I think H&S patterns certainly are significant... I just have trouble seeing a good one on the monthly SPX. H&S is like the Dow theory reversal - lower high, lower low... fairly simple, really. Or, in Elliott terms, by and large, the right side of the "head" and "shoulder" is either a 1-2-3 or an A-B-C. In the former case, the H&S will be a true reversal. In the latter, if the ABC is a zigzag, the pattern may "work out", and than reverse into the original direction. If, otoh, the ABC is a Flat, then the trader will be mislead... and the trend will resume with vengeance, maybe right from under the neckline... and the H&S will have "failed". I am simplifying things a bit. There can be more complex situations, causing more complex reversal formations... we all know that. But in the end, it's all about the same price action, and there is no pattern in classic TA which could not be seen in terms of EW.