Forum Archive Index - November 2000

["Tony Haddon" <haddon@E3.net.nz>]

You will have read that double bottoms are among the most reliable patterns i guess warner...I have never looked out for them because a) my software will not "explore" for them, I have to do it manually/visually and b) you can get into the usual bottompicking smelliness by imagining a double bottom developing and cunningly pre-empting it......I prefer obvious trends, particularly here and now.c)There's the usual question of time frame..ITC has definitely started crabbing on daily chart, but it still doesn't look too hot on  weekly chart. d) for my money  picking head & shoulders can be a bit subjective..optimistic eyeballs create a lot of mischief...eg I can't see any in your examples  !! None of them excite me yet..e) Reliable patterns need decent trading volume, rather than kiwi dribbling.. For some real excitement look up the chapter on cup & saucer......my limit with patterns are common or garden triangles, and for the speccies of old, retracements.

All IMO  ..I'm not one of Hugh's goat entrails men, to me a chart is as good a way as any of keeping track of share trading data, and I'm sure  even the aformentioned h wouldn't buy a stock without comparing current price with yesterday's or last week's..

 

Rgds,    Tony Haddon