The investor's daily edge says quotes the above and says: I noticed what appears to be a very well defined inverse head and shoulders pattern. Look at the weekly chart below to see the different parts of the formation. I can forwrd the email to anyone wanting it
i can agree that a pattern often does not predict what it is supposed to, but i am reading Finweek (28 aug 2008) and in it they use a head and shoulders to predict a goodbye kiss as they call it. They further state that:Beware the bear trap. Dows goodbye kiss previously often forecast further price drops (below this is a head and shoulders graph).