Goldtent TA Paradise

Gold yearly Inverse Head and shoulder

1. Wazcam says:

   April 4, 2018 - 6:30 pm at 6:30 pm

   Suggested something similar myself earlier this week over at the Forum. My concern was where does one begin to ‘count’ from.

2. BooBooMan says:

   April 4, 2018 - 8:36 pm at 8:36 pm

   If I remember my Edwards & McGee correctly, volume on the right-shoulder should noticably contract for the H & S Pattern to be valid.

3. Wazcam says:

   April 4, 2018 - 9:02 pm at 9:02 pm

   Just for reference to others:

   Head and shoulders bottom
   This formation is simply the inverse of a Head and Shoulders Top and often indicates a change in the trend and the sentiment. The formation is upside down in which volume pattern is different than a Head and Shoulder Top. Prices move up from first low with increase volume up to a level to complete the left shoulder formation and then falls down to a new low. It follows by a recovery move that is marked by somewhat more volume than seen before to complete the head formation. A corrective reaction on low volume occurs to start formation of the right shoulder and then a sharp move up that must be on quite heavy volume breaks though the neckline.

   • Fullgoldcrown says:

     April 4, 2018 - 11:09 pm at 11:09 pm

     Thanks Sir Waz. This chart is thus a classic…all it needs to do is breakout

   • BooBooMan says:

     April 5, 2018 - 2:25 pm at 2:25 pm

     The most important volume requirement for a H & S Bottom is a SURGE in trading volume at the breakout upward through the neckline.

     Head and Shoulders Pattern

     “The Head and Shoulders Bottom (Reverse Head and Shoulders) is created by three successive declines in the price following a signicant downtrend. The lowest low (head) is in the middle, anked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the rst two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline – drawn between the two highs – to conform the BULLISH reversal. The Head and Shoulders Top is the bearish counterpart signaling a major trend reversal downward.”…

     “The main difference between a Top Formation and a Bottom Formation is in the volume patterns. The breakout in a Top can be on low volume. The breakout in a Bottom must show a “conspicuous burst of activity.”

     Source: Edwards, Robert and Magee, John. Technical Analysis of Stock Trends 9th Edition

     https://cmtassociation.org/kb/head-and-shoulders-patterns/

4. Northstar says:

   April 5, 2018 - 9:23 am at 9:23 am

   Great chart and comments. As Fully said, all that’s missing now is the breakout.

5. LSTrading says:

   April 5, 2018 - 10:25 am at 10:25 am

   Thank u for the feedback (positive), Fully and North, I have both of your gold charts printed and sitting on my desk and use them as references daily. Patiently waiting