I dont know what methods these people are using but they have got it wrong (reinforced by the fact that they obviously dont know what a H&S target is - I would write the program quite differently and may do so). My understanding is that a well formed H&S will meet target 90% of the time. If it does not, it is a very bullish sign of a complete change in market opinion.
I trade H&S on an intraday, daily and weekly basis and in five years of trading I have never known the target not to be reached (though I have seen one in a book). Generally the price bounces off the target within 1 or 2 cents or it goes straight through. The people I trade with have watched me do it many times this year, and will watch me do it many more.
If this is a myth then it is making all my money on the downside. Can you tell me some more myths please?
