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Reverse HandS on the ALSI

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venice
Super Contributor
Seems the ALSI has an inverted H&S on the hourly chart. Its at resistance of the neckline things might get interesting later??
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KVW
Super Contributor
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venice
Super Contributor
Inverted H&S is a bullish pattern. BUT the price action must clear the neckline which acts as resistance if it can't the pattern is a failure. The rates decision is the catalyst.
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Venice,so if the rates are dropped by 50bps,will we rally,isnt it already priced in??
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I see an inverted H&S on the daily top 40 - neckline broken yesterday, and volume confirming ...
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venice
Super Contributor
For the pattern to be valid a decisive break of the neckline resistance needs to happen (I'm not saying will happen) SO we need a catalyst to do this. The likely candidate is the rates decision. For this to do it the rates would have to please the market possibly 100 points maybe the 50 would also bouy the market but once the neck breaks and is tested a target of 24000 is likely.
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Newbee, you have too much expectation on the rates cut and the expected result. The dow last friday didn't react at all to the US's worst job loss statistics in 30 years, in fact it rallied when everyone thought it would tank. There is no possible way of knowing what will happen after the announcement. All you need to know is where your support * resistance lines sit, and trade them accordingly
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venice
Super Contributor
You're right lamb chop the rest is smoke and mirrors.
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YNWA
Super Contributor
blééééh.....bah bah to that V....I'll have mine smoked..ta!....mirrors 'n sheep a bit Floydish!
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Hi, if I wanted to learn about support levels and resistance and how to recognise and interpret them, how would you suggest that one does this.
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Sadie - any good tech analysis textbook will give you the essentials - my favourite is Martin Pring's book (not sure exactly what the title is but it has "Technical Analysis" in the title). Quite expensive, but a great resource. SBK OST also has (or had) a great online course on tech analysis which explains support and resistance very well (also its free). Understanding them and interpreting them is one thing, its how you act on that understanding and interpretation that matters, so read "Trading in the Zone" by Mark Douglas three times before you put on a trade ...
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