Natural Laws

Stock market prices trend and reverse recognizable patterns.

The Patterns are repetitive in form.
Progress takes the form of five waves of a specific structure.
Three of these waves which are labeled 1, 3, 5 actually effect the directional movement.
Waves 1, 3, 5 are separated by two counter trend interruptions which are labeled 2 and 4.
Wave 2 never moves beyond the start of wave 1.
Wave 4 never enters the price territory of wave 1.
Ingredient Two: Antecedent conditions
Wave 4 has unfolded in three waves.
Wave a and wave c have traced out five completed waves.
Waves a and c are equal in length.
Wave four has not broken the price territory of wave 1.

Volume and Reversal H&S

Volume should rise into the top of the left shoulder and fall to the completion of the Shoulder because the
trend us still in that direction.
The Volume to the Head should be less than the Volume to the top of the right shoulder.
As you approach the top of the Head volume should decline
As price begins trending down, the volume should be like what it was going to the top of the Head or
Greater showing opposite pressure.
Volume should be light to the top of the right Shoulder
Volume should be Strong to the Neckline especially when breaking it.
If the price tests the Necklines after breaking it, it should do on light volume.