This pattern is just as reliable at a bottom as at a top. The general rule of lower activity at bottoms is reflected the the Head and Shoulders Bottom . For this same reason, this bottom pattern is often longer and less broad, and the eventual breakout volume is often not as intense as on a Head and Shoulders Top. Overall, more demands are made on our patience.
The forecast is not established until the neckline has been breached decisively, ideally by an appreciable pick up in volume.
Yesterday produced an out of line movement which closed beyond the neckline. The forecast is therefore for a fairly quick completion of the pattern in the same direction.
The 3% point is shown. This is the conservative recommendation given by Edwards and Magee for taking a position on breakout.
The forecast is not established until the neckline has been breached decisively, ideally by an appreciable pick up in volume.
Yesterday produced an out of line movement which closed beyond the neckline. The forecast is therefore for a fairly quick completion of the pattern in the same direction.
The 3% point is shown. This is the conservative recommendation given by Edwards and Magee for taking a position on breakout.