Head & Shoulder Pattern Should be Removed From the Chart Book

The success rate of head & shoulder patter is laughable. We all remember the head & shoulder pattern discussed on the media back in 2010 in fear of double dip recession.   Well, it never materialize.  As a matter of fact, the SPY rallied more than 30% from the neckline till last May.

Head & should was also identified on the IBM daily chart.  And it looked ominous right before last night’s earnings report.   Surprise!  Today IBM was up over 4%, defying the H&S patter once again.

H&S pattern should be removed from the chart book period.  It’s a tool invented by the elites to brain wash traders and investors, so that they can make a killing for themselves. Period.

Fortunately I didn’t short IBM, as my hands are full shorting the market overall.  Sadly, yes, I find that a consolation. LOL.

Now L-H-R didn’t work.  May be L-L-H-R-R patter would work?!   Next target for IBM is 188.50 – 188.70 area,  based on my 123.6% Fib extension on the 60 minuate and the obvious horizontal resistance from last December, respectively.  I made some day trading shorts successfully off the 100% Fib extension around 187.33 this morning.  I plan to do the same at 188.50.

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About fifty2weekhi

Profit for my kid's future.
This entry was posted in General Commentary, Trade Setups, Wisdom on Trading and tagged , . Bookmark the permalink.

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