Head+Shoulder Trading Fallacy , page-4

I agree rod, and one thing charts do tell us is what human emotions do in different situations. Over the years, human emotions (fear, greed etc) have never changed, neither will they.
It's a bit like double tops and bottoms, or any other pattern. Because so many use charts as well as t/a, you can guarantee there will be resistance there. If they are taken out, basically the belief in t/a is sufficient to overcome the resistance, so higher tops can be expected.
For every believer you will find a non believer and each are prepared to put forward an infallable case.
As for a 1% stop loss at areas of market volatility (ie head and shoulders) I would find this one sure way of making it fail!

Bomber