marcus said:
Soumya SRF dosen't really seem like an inverted head and shoulders, trading academy says the easier the pattern is to spot the more likely the reversal/continuation will occur. Also the volume is not in accordance as per Edwards and Magee. What is your opinion?
as far as price pattern is concerned, i have found two distinct shoulders and a head. since it is a POSSIBLE candidate of this pattern i want to see how does the the volume pattern will span out?
Let see the experts view on volume :
Experts, including Murphy, maintain that the volume pick-up at the end of the pattern is essential. "If the volume pattern does not show a significant increase during the upside price breakout, the entire pattern should be questioned." Other experts, including Bulkowski, are not so convinced: "a low volume breakout is not an indicator of an impending failure."
marcus said:
Soumya just a quick question in Ruchi soya shouldn't the period between the two bottoms be atleast 3 months?
The twin valleys are several weeks apart with most falling in 2 to 7 week range. Wider than 7 weeks and performance deteriorates.
StockCharts
The time period between troughs can vary from a few weeks to many months, with the norm being 1-3 months.
Happy Trading,
Soumya
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