H&S applies to the top portion of an impulse and the first part of a corrective zigzag, when they do work. When they form a flat, people get stopped before it falls...Can also be a truncated fifth.
This one doesn't look like that, in fact, the move right now looks like a terminal wedge lacking the last wave up.
rv
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thanks for comment.
As long as the shoulder holds, its valid. Remember, everything we see is a perspective.
IvanLabrie
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I agree on that part, but I just prefer to not rely on this geometric formation...The only patterns I look at are ending diagonal and contracting/expanding triangles which stem from EW.
rv
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sure Ivan, dont use it that often too, but lots of people do.
IvanLabrie
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You can see H&S' everywhere if you want to find them...too vague in my opinion.
If you can make it work for yourself, that's perfectly fine.
My friend jangseohee uses H&S a lot for example.
rv
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Just happened to see an IHS on this one, m8. :)
joryan
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I don't understand this. What i thought was:
It is way overbought.
It has broken the trendline indicating a drop.
It is in an upward channel, why not buy at the bottom of the channel?
Three reasons for a a sell. Why is this head and shoulders thing so relevant to compensate for all the negative signals?
rv
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ok if it suits you, buy it whenever you like, as long as the shoulder holds. good luck
joryan
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So it is a matter of timing? I look at shortterm signals, and you are talking about a long term movement upward?
rv
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yes, at the time of the trade, the above sell signals were not valid.
This one doesn't look like that, in fact, the move right now looks like a terminal wedge lacking the last wave up.