08-22-2006, 02:30 PM
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Status: Super Moderator Join Date: Aug 2006 Location: Tokyo Thanks: 545
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| Head-n-Shoulders with VAH Pivot: A Powerful Trading Pattern
As soon as prices failed to use the VAH pivot, we had a rapid decline. It's always important to find warning clues of a decline. In this exmple, notice the 3 peals that formed on the 233 TICK chart. They resemble a head-n-shoulders pattern. The neckline was also in line with the VAH pivot. This is a powerful trading pattern.
The markets then went from trading above value to below it. There is clear other time frame sellers who perceived prices to be too high. The markets will find a level of acceptance and will find balance there. In this case, new value seems to be below the current value area.
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