[isatrader]

Looks like you are right with it being weaker at the moment. My question is how much stock do you put into the head and shoulders pattern? (comparing it to RS that is) Just curious as to what your opinion is on the matter. He says in the book that it is especially strong. But makes no real indication on what he would choose between a stock with a stronger pattern or one with a stronger RS indication.

I think the relative strength is more important personally as it's one of the key components of the method, whereas a head and shoulders pattern is simply a nice additional technical signal that gives extra weight to the argument as the stock has made a lower high. For example if a stock has good relative strength, but is forming a head and shoulders pattern, then the following the methods rules you wouldn't want to go short it, as you don't short strong stocks. I think however, it would affect the rating as stocks with a good technical pattern get the additional rating of a + or a - symbol. i.e. Stage 1B+ could be used imo, if a stock was close to breaking out into early Stage 2A, but was also showing an especially good technical pattern, such as an inverse head and shoulders pattern.