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1. SECTION VI
Classic Methods

2. CHAPTER 28
Bring All Together
Real World Charts

3. Learning Objective
• Predict likely price action based on candlestick patterns
and the overall context of the price action
• Propose entry and exit points based on patterns, price
action, and risk
• Assess trend Resistance based on candlestick
patterns- and the overall context of the price action
3

4. Example 1
4
▪ Use Exhibit 28.1
for questions 1
and 2.
1. For areas A, B, and
C, which is a rising
window? A falling
window?
2. What are their
respective support
and resistance zones?

5. Example 2
5

6. Example 2 Question
Use Exhibit 28.2 to answer questions 3 to 7.
3. Highlight the three rising windows before candle line A on
March 22.
4. Based on these rising windows, where would support
levels be? If the first support at the top rising window was
broken, where wouJd we expect next support?
5. What is the candle line at X?
6. If one buys at line X, where is a potential resistance area?
(hint: Connect highs from A and B.)
7. Based on the question above, would a buy on the close of
line X present an attractive risk/reward profile?
6

7. Example 3
7
Use Exhibit 28.3 for questions 8
to 10.
8. What are the candle signals at
1, 2, 3, and 4?
9. At area A! how were the candle
lines hinting that the market was
losing bullish momentum, even
though the stock was making
higher highs and higher closes?
10. In early March (area B) the
stock made another series of
higher highs and higher doses.
What were the candlesticks
hinting about the extent of the
bulls' control?

8. Example 4
8
Use Exhibit 28.4 to answer
questions 11 and 12.
11. Name the four candlestick
signals at 1, 2, 3, and 4-that
underscore support near $75.
12. What happened at signal 5
that gave this market a
further bullish outlook?

9. Example 5
9

10. Example 5
Use Exhibit 28.5 to answer questions 13 to 18.
13. Highlight the rising ,windows.
14. What are the candle signals at X and Y?
15. Is X a potentially bearish signal? Why or why not?
16. Would you sell on the close of line X? (Hint: Note X's low and the prior
session's high.)
17. What would be bearish confirmation of the potential negative
candlestick signal line at X?
18 . What would cause us to reassess a bearish view based on Signal Y?
10

11. Example 6
11
Use Exhibit 28.6 to
questions 19 to 21.
19. What are the patterns at
A and B?
20. What were the two
aspects that made pattern
B more likely a bottom
reversal?
21. After the week of
October 8, why was there
support near $23?

12. Example 7
12
Use Exhibit 28.7 for
questions 22 to 24.
22. What were the signals
at A, B, and C?
23. Highlight the Harami
patterns on this chart.
24. What was especially
Significant about the two
candle lines at C?

13. Example 8
13
Use Exhibit 28.8 to
answer question 5
25 Which of the
numbered lines are
hammers?

14. Example 9
14
Use Exhibit 28.9 for questions
26 to 28.
26. What Signals at 1,2, and 3
show hesitation near the
1970/1975 area?
27. After the opening on March
20 (at candle line 1), why is
there support near 1950?
28. While the doji at 1
suggested that the market was
tired, what was needed to
confirm its potentialIy bearish
implications? (Hint: See
question 2.)

15. Example 10
15
Use Exhibit 28.10 to answer
questions 29 to 42.
Match the list of candle signals
below "with the numbered candle
lines and patterns in Exhibit 28.10.
a. bullish engulfing pattern
b. bullish harami
c. bearish harami
d. falling window
e. southern doji
f. morning star
g. northern doji
h. shooting star
i. hammer

16. Thanks