Ander's Market Theories

[AnderL]

Multiple Head and Shoulders on Dow and S&P500

Per Edwards and Magee a Multiple Head and Shoulders pattern is a Complex Formation. They are not much different than the typical Head and Shoulder formation and follow the same criteria as a Head and Shoulder reversal formation but instead are shown with the shoulders or head or both doubled or proliferated into several distinct waves.

Formations of this type appear with fair frequency at primary Bottoms and Tops but most often at Bottoms than at Tops. They appear less frequently at Intermediate Reversals.

A common form consists of two left shoulders of approximately equal size, a single head, and then two right shoulders, again of approximately even size and balancing the two on the left.

Another is made up of two heads with two or more shoulders on either side. Still another of which you will usually find several good examples at any Market Turn, consist of double shoulders on either side of a head which is itself composed of a small but quite distinguishable Head and Shoulder development.