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To: Sonki who wrote (14525)	12/14/1997 6:17:00 PM
From: JPR	Respond to of 27012

<< know what head and shoulder looks like ( i know it's not the shampoo) but can u explain me why that is bearish vs. why double top?>> Sonki: I am writing this in detail in order to make my own thinking clear and in no way implies that I am head and shoulder above everybody else. But I am 5'9". The Head and Shoulder Pattern (H&S) is a reliable pattern of trend reversal. The H&S consists of: Triple top - (my words) 1: Three spikes . The middle spike is the head and the lateral spikes are the right and left spikes or shoulders. The Middle spike is always higher and so is called a head. 2: The lateral spikes are called right and left shoulders. These are not anatomical shoulders. The left shoulder is on your left side and the right shoulder is on your right side. wyswyg WHAT YOU SEE IS WHAT YOU GET. The head is not facing you and so you are seeing the back of the head. 3: The neck line connects the lowest of the left shoulder and the head and then on to the lowest of the right shoulder. The neck line can be horizontal, sloping down or sloping up. Sloping-down neck line is a sign of bearish strength. When the neck line is penetrated or violated on the right side , it is the beginning and the confirmation of the downtrend. It is common to see that the bulls try to penetrate the neck line and carry the price upwards. If the prices cannot penetrate and go higher than the neck line, the prices go down on an increased volume. 4: Volume: In H&S, Volume is the highest at the left shoulder and declines progressively to the head and the right shoulder only to increase when the neck line is broken ( pardon the pun) . DOUBLE TOP: Just chop off the head and you have a double top. The price rises to a resistance level on an increased volume, retreats and rises again to the resistance level on a diminished volume. Now the downtrend is all set to happen. ROUNDING TOPS: Just imagine a car speeding up north , slows down makes a rounded U TURN and once U turn is completed, the car speeds up south, taking the prices down. The speed equals volume. And the price follows or accompanies . INVERSE HEAD AND SHOULDERS, ROUNDING BOTTOMS, AND DOUBLE BOTTOM: JUST IMAGINE THE MOVEMENT BACKWARDS AND THEY ARE ALL UPSIDE DOWN. Inverse Head and Shoulders is a head-stand position and therefore bullish If there is any inadvertent error, please post. Paul