SUMMARY
I'm hearing more and more clamors about Head & Shoulders Top. I've drawn out the below traces of shoulders and heads per fractals. Patterns require a completion and a confirmation. One key aspect of H&S pattern is that the volume has to confirm. Below chart shows that volume does not trace out the needed confirmations for any of the H&S fractals.
The triangle pattern is shown below and the the bottom line has been updated to make the overnight price action inclusive. The volume is declining and it should continue declining to a trickle. This is the volume confirmation of a triangle which was missing for the H&S patterns.
Here is VERGE showing very nicely how volume trickles to near nothing as price appraoches the apex, the point at which the two lines of the triangle intersect.
Here is a combined, a bit messy looking, chart showing both the triangle (blue) and the bear flag scenario. IF price bounces and breaches the upper blue line but bounces down from the upper white line, we could have the bear flag play. IF price bounces from the upper blue line and goes down, then wave e could be completing for the triangle pattern. Technical Analysis is a process of probabilities and not certainty; and so, let's see how this gets resolved.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?
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