This document provides an overview and descriptions of 50 common chart patterns. It includes details on the directional bias, type (reversal or continuation), description of the pattern shape and trends, typical volume characteristics, breakout confirmation criteria, measuring techniques to determine price targets, and statistical notes on factors that impact success rates. The patterns covered include various bottoms and tops, flags, gaps, head and shoulders, triangles, and wedges. The goal is to introduce readers to these fundamental patterns that form the basis of technical analysis.
This document outlines different trading strategies and provides an overview of a swing trading strategy called Morpheus Trading (MTG) that aims to take advantage of momentum in the markets. The MTG strategy involves identifying the intermediate-term trend using daily and weekly charts, looking for proper trade setups with a breakout and pullback pattern, having a clear exit strategy, disciplined risk management by limiting losses to 1-2% per trade, and understanding how emotions like greed, fear and hope influence market movements. The strategy aims to "buy high and sell higher" by purchasing stocks trading near 52-week highs rather than bargain hunting for cheap stocks.
This document provides an overview of price action trading. It defines price action trading as basing trading decisions solely on price movements and patterns, without using indicators. Price action traders believe the only true information comes from price itself. Common price action strategies include breakouts, where the price breaks out of a range or pattern. Benefits are that strategies are simple and entries/exits are often favorable compared to lagging indicators. Drawbacks include difficulty automating and not knowing if an upward moving price will continue rising.
What are some of the advantages of using a scalping strategy to trade the forex market? - Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. - Exit is usually within 20 minutes or less - Lots of trades Strategy uses 3 Indicators The strategy uses 3 indicators: pivot points, Fibonacci retracement and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3.
This document provides an overview of high probability trading setups for the currency market. It discusses the top 10 trading rules developed by the authors from years of observing currency price action. These rules are meant to keep traders grounded and out of harm's way. The document then outlines several high probability trading setups and strategies for both trending and counter-trend environments in the currency market.
The document introduces the RSI indicator strategy for trend reversals on timeframes of 5-15 minutes for currency pairs like EURUSD and GBPUSD. It explains that RSI shows when the price is overbought or oversold, signaling trend reversals back within its 30-70 trading range. It provides instructions on how to set up the RSI indicator on a 1-minute candle chart using a period of 5, and describes buying put options when RSI drops below 70 from overbought conditions or call options when RSI rises above 30 from oversold conditions.
This document discusses market structure and liquidity in the forex market. It defines key concepts like expansion and retracement, break in market structure, range high and low, and failure swings. It explains how markets can be in consolidation, uptrend or downtrend phases. It also discusses how liquidity exists in the form of buy stops liquidity and sell stops liquidity, and what levels traders should focus on for each. The document provides information on understanding order flow and how banks manipulate prices to find liquidity to enter large positions.
Day trading techniques include scalping, fading, daily pivots, and momentum trading. Scalping aims to take quick profits by entering and exiting positions as soon as they become profitable. Fading shorts a stock when it moves up quickly, expecting a sell-off. Daily pivots look to benefit from volatility by buying low and selling high, exiting on signs of reversal. Momentum trades ride trends fueled by news or volume until signs of reversal like decreasing volume or bearish candles. Day traders use candlestick charts, level 2 quotes, and newsfeeds to identify entry points supported by patterns, volume spikes, and order book depth.
This document outlines different trading strategies and provides an overview of a swing trading strategy called Morpheus Trading (MTG) that aims to take advantage of momentum in the markets. The MTG strategy involves identifying the intermediate-term trend using daily and weekly charts, looking for proper trade setups with a breakout and pullback pattern, having a clear exit strategy, disciplined risk management by limiting losses to 1-2% per trade, and understanding how emotions like greed, fear and hope influence market movements. The strategy aims to "buy high and sell higher" by purchasing stocks trading near 52-week highs rather than bargain hunting for cheap stocks.
This document provides an overview of price action trading. It defines price action trading as basing trading decisions solely on price movements and patterns, without using indicators. Price action traders believe the only true information comes from price itself. Common price action strategies include breakouts, where the price breaks out of a range or pattern. Benefits are that strategies are simple and entries/exits are often favorable compared to lagging indicators. Drawbacks include difficulty automating and not knowing if an upward moving price will continue rising.
What are some of the advantages of using a scalping strategy to trade the forex market? - Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. - Exit is usually within 20 minutes or less - Lots of trades Strategy uses 3 Indicators The strategy uses 3 indicators: pivot points, Fibonacci retracement and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3.
This document provides an overview of high probability trading setups for the currency market. It discusses the top 10 trading rules developed by the authors from years of observing currency price action. These rules are meant to keep traders grounded and out of harm's way. The document then outlines several high probability trading setups and strategies for both trending and counter-trend environments in the currency market.
The document introduces the RSI indicator strategy for trend reversals on timeframes of 5-15 minutes for currency pairs like EURUSD and GBPUSD. It explains that RSI shows when the price is overbought or oversold, signaling trend reversals back within its 30-70 trading range. It provides instructions on how to set up the RSI indicator on a 1-minute candle chart using a period of 5, and describes buying put options when RSI drops below 70 from overbought conditions or call options when RSI rises above 30 from oversold conditions.
This document discusses market structure and liquidity in the forex market. It defines key concepts like expansion and retracement, break in market structure, range high and low, and failure swings. It explains how markets can be in consolidation, uptrend or downtrend phases. It also discusses how liquidity exists in the form of buy stops liquidity and sell stops liquidity, and what levels traders should focus on for each. The document provides information on understanding order flow and how banks manipulate prices to find liquidity to enter large positions.
Day trading techniques include scalping, fading, daily pivots, and momentum trading. Scalping aims to take quick profits by entering and exiting positions as soon as they become profitable. Fading shorts a stock when it moves up quickly, expecting a sell-off. Daily pivots look to benefit from volatility by buying low and selling high, exiting on signs of reversal. Momentum trades ride trends fueled by news or volume until signs of reversal like decreasing volume or bearish candles. Day traders use candlestick charts, level 2 quotes, and newsfeeds to identify entry points supported by patterns, volume spikes, and order book depth.
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
This document provides an overview of different chart patterns that traders can use, including triangles (ascending, descending, and symmetrical), head and shoulders patterns, and their inverses. It discusses how to identify these patterns on charts and how to trade when they are formed, including where to place stop losses and take profits. Key points covered include that the head and shoulders pattern is a reliable reversal indicator, triangles can signal continuations or reversals depending on the type, and symmetrical triangles can result in breakouts in either direction.
“Forex Trading Strategies” is a complete guide of most popular and widely used strategies in Forex trade. You can read about day trading and its main types, understand the strategies based on market analysis, learn about portfolio and algorithmic trading, and many more. The book represents the ins and outs of each strategy - why and how it is used and how to get profit from trade. It is suitable for all traders who are novice in trade or want to improve their skills. All the strategies classified and explained here are for educational purposes and can be applied by each trader in a different way.
The power to predict basics and advanced forex analysisPower Point
1) The document discusses advanced techniques for analyzing currency markets, including the use of pivots, Elliot waves, and Fibonacci to predict market movements and find high probability entry and exit points.
2) Pivots including support/resistance levels, moving averages, and trend lines are described as the basics for finding key market levels, with examples given on charts.
3) Elliot wave theory and Fibonacci retracements/extensions are presented as more advanced techniques for analyzing market emotions and structure. Examples on charts show how these can predict movements.
4) The author promotes their website, newsletter, and broker for learning these techniques through free courses and trading support.
This document provides an overview of supply and demand trading strategies. It begins with an introduction and disclaimer about the risks of trading. It then discusses key concepts like identifying trends on charts, drawing trendlines, and understanding retracements and reversals. The document focuses on explaining supply and demand zones, how to identify and draw them on charts, and how to develop a trading strategy around high probability supply and demand zones. It emphasizes the importance of risk management strategies like stop losses and position sizing. The goal is to provide readers with the fundamental tools and framework to execute a supply and demand trading approach.
How to Identify and Draw Support and Resistance Levels on Any Chart My Trading Skills
Here we go over what support and resistance levels are, different types of support and resistance lines, how to draw support and resistance lines and much more.
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
The document discusses several momentum indicators used in technical analysis:
1) The True Strength Index (TSI) uses exponential moving averages of momentum to indicate trend direction and overbought/oversold conditions. Values between +25 and -25 suggest the market may turn.
2) The Relative Strength Index (RSI) compares recent gains to recent losses to measure momentum. Values above 70 suggest an asset is overbought and below 30 means it is oversold.
3) The Stochastic Oscillator compares the current close to the high-low range to indicate if a stock is near the high or low end of its recent trading range.
4) The Williams %R reflects the
forex trading strategy that you can make money with. Can also be use by using your android and iphone metatrader.
The settings on the indicator are easy to setup. The strategy best time frame is h4 and hourly chart.
http://www.pipsumo.com/2017/04/parabolic-sar-trading-strategy.html
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
Top 8 Forex Trading Strategies That Pro Traders UseSyrous Pejman
In this slideshow find the best Forex trading strategies including chart patterns, price rejection, correlation trading, volume-price analysis, long term daily and weekly trading, news and sentiment trading strategies. Besides, you will learn the best money and risk management methods and also the best advice by the experts to control your psychology during your trades.
This document provides descriptions of 17 candlestick formations that can be used to identify money making opportunities in financial markets. It defines terms like real body, upper/lower shadows, and different types of candlestick lines. Each formation is given a name and brief explanation of when it forms and whether it indicates a bullish or bearish signal. Formations include things like doji lines, engulfing patterns, morning/evening stars, hammers, and tweezers tops and bottoms. The purpose is to introduce common candlestick patterns traders can recognize to potentially profit in trends or reversals.
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
An overview of technical analysis and its common techniques (Candlestick , MACD, Parabolic SAR, RSI, Bolinger Bands etc) - given to brokers and managers of Nepal Derivative Exchange (NDEX) by Mr. Sohan Khatri (Resource person - Management Association of Nepal, Adjunct Faculty - Ace Institute of Management, Kathmandu College of Management)
This document introduces the MagicBreakout forex trading strategy. It is summarized as follows:
1) The strategy aims to enter the market before breakouts occur by using the CCI indicator to signal when to enter trades. This allows traders to enter positions before the crowd of momentum traders.
2) Detailed rules are provided for both entry and exit including identifying trends using EMAs, setting entry criteria using CCI crossovers, and taking profits and stops using Fibonacci retracement levels.
3) Following the strategy and strict money management is touted as the key to achieving consistent profits that grow exponentially over time. Additional paid strategies and software are promoted as helping automate the system.
Understanding Japanese Candlesticks in Forex Trading by valentino heavensValentino Heavens
The document discusses candlestick patterns and how to use them. It describes the 6 most common candlestick patterns: Doji candles, near Doji group, engulfing candles, tweezer candles, inside candles, and outside candles. These patterns can indicate indecision, reversals, or continuations in the market. It emphasizes confirming candlestick patterns with other indicators and waiting for candle closes before entering positions. The "candy bar" setup is also introduced as one of the safest trades when confirmed by other indicators in a continuing trend.
The Most Profitable Forex and Stock Chart PatternsSyrous Pejman
Two or three chart patterns are responsible for 70% of my successful Forex and stock trades. Learn these amazing chart patterns and use them in your daily trading and start making big money.
The document discusses various technical analysis patterns that can indicate reversals or continuations of trends in stock prices. It describes reversal patterns like head and shoulders, double tops and bottoms, and rounding tops and bottoms. Continuation patterns discussed include triangles, flags, pennants, wedges, rectangles, and cups and handles. Key characteristics of each type of pattern are provided such as requirements for confirmation of the pattern and targets for price movements.
Stock chart-Chart patterns and formations-Analysis of chart patternAkbarAli309
This document discusses stock charts and chart patterns. It begins by defining different types of stock charts, including line charts, bar charts, and candlestick charts. It then explains common chart patterns such as double tops and bottoms, head and shoulders, triangles, channels, and wedges. Key aspects of these patterns like support and resistance zones are described. The document provides examples of each pattern and discusses how technical analysts use patterns to potentially predict future price movements and identify reversal signals.
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
This document provides an overview of different chart patterns that traders can use, including triangles (ascending, descending, and symmetrical), head and shoulders patterns, and their inverses. It discusses how to identify these patterns on charts and how to trade when they are formed, including where to place stop losses and take profits. Key points covered include that the head and shoulders pattern is a reliable reversal indicator, triangles can signal continuations or reversals depending on the type, and symmetrical triangles can result in breakouts in either direction.
“Forex Trading Strategies” is a complete guide of most popular and widely used strategies in Forex trade. You can read about day trading and its main types, understand the strategies based on market analysis, learn about portfolio and algorithmic trading, and many more. The book represents the ins and outs of each strategy - why and how it is used and how to get profit from trade. It is suitable for all traders who are novice in trade or want to improve their skills. All the strategies classified and explained here are for educational purposes and can be applied by each trader in a different way.
The power to predict basics and advanced forex analysisPower Point
1) The document discusses advanced techniques for analyzing currency markets, including the use of pivots, Elliot waves, and Fibonacci to predict market movements and find high probability entry and exit points.
2) Pivots including support/resistance levels, moving averages, and trend lines are described as the basics for finding key market levels, with examples given on charts.
3) Elliot wave theory and Fibonacci retracements/extensions are presented as more advanced techniques for analyzing market emotions and structure. Examples on charts show how these can predict movements.
4) The author promotes their website, newsletter, and broker for learning these techniques through free courses and trading support.
This document provides an overview of supply and demand trading strategies. It begins with an introduction and disclaimer about the risks of trading. It then discusses key concepts like identifying trends on charts, drawing trendlines, and understanding retracements and reversals. The document focuses on explaining supply and demand zones, how to identify and draw them on charts, and how to develop a trading strategy around high probability supply and demand zones. It emphasizes the importance of risk management strategies like stop losses and position sizing. The goal is to provide readers with the fundamental tools and framework to execute a supply and demand trading approach.
How to Identify and Draw Support and Resistance Levels on Any Chart My Trading Skills
Here we go over what support and resistance levels are, different types of support and resistance lines, how to draw support and resistance lines and much more.
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
The document discusses several momentum indicators used in technical analysis:
1) The True Strength Index (TSI) uses exponential moving averages of momentum to indicate trend direction and overbought/oversold conditions. Values between +25 and -25 suggest the market may turn.
2) The Relative Strength Index (RSI) compares recent gains to recent losses to measure momentum. Values above 70 suggest an asset is overbought and below 30 means it is oversold.
3) The Stochastic Oscillator compares the current close to the high-low range to indicate if a stock is near the high or low end of its recent trading range.
4) The Williams %R reflects the
forex trading strategy that you can make money with. Can also be use by using your android and iphone metatrader.
The settings on the indicator are easy to setup. The strategy best time frame is h4 and hourly chart.
http://www.pipsumo.com/2017/04/parabolic-sar-trading-strategy.html
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
Top 8 Forex Trading Strategies That Pro Traders UseSyrous Pejman
In this slideshow find the best Forex trading strategies including chart patterns, price rejection, correlation trading, volume-price analysis, long term daily and weekly trading, news and sentiment trading strategies. Besides, you will learn the best money and risk management methods and also the best advice by the experts to control your psychology during your trades.
This document provides descriptions of 17 candlestick formations that can be used to identify money making opportunities in financial markets. It defines terms like real body, upper/lower shadows, and different types of candlestick lines. Each formation is given a name and brief explanation of when it forms and whether it indicates a bullish or bearish signal. Formations include things like doji lines, engulfing patterns, morning/evening stars, hammers, and tweezers tops and bottoms. The purpose is to introduce common candlestick patterns traders can recognize to potentially profit in trends or reversals.
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
An overview of technical analysis and its common techniques (Candlestick , MACD, Parabolic SAR, RSI, Bolinger Bands etc) - given to brokers and managers of Nepal Derivative Exchange (NDEX) by Mr. Sohan Khatri (Resource person - Management Association of Nepal, Adjunct Faculty - Ace Institute of Management, Kathmandu College of Management)
This document introduces the MagicBreakout forex trading strategy. It is summarized as follows:
1) The strategy aims to enter the market before breakouts occur by using the CCI indicator to signal when to enter trades. This allows traders to enter positions before the crowd of momentum traders.
2) Detailed rules are provided for both entry and exit including identifying trends using EMAs, setting entry criteria using CCI crossovers, and taking profits and stops using Fibonacci retracement levels.
3) Following the strategy and strict money management is touted as the key to achieving consistent profits that grow exponentially over time. Additional paid strategies and software are promoted as helping automate the system.
Understanding Japanese Candlesticks in Forex Trading by valentino heavensValentino Heavens
The document discusses candlestick patterns and how to use them. It describes the 6 most common candlestick patterns: Doji candles, near Doji group, engulfing candles, tweezer candles, inside candles, and outside candles. These patterns can indicate indecision, reversals, or continuations in the market. It emphasizes confirming candlestick patterns with other indicators and waiting for candle closes before entering positions. The "candy bar" setup is also introduced as one of the safest trades when confirmed by other indicators in a continuing trend.
The Most Profitable Forex and Stock Chart PatternsSyrous Pejman
Two or three chart patterns are responsible for 70% of my successful Forex and stock trades. Learn these amazing chart patterns and use them in your daily trading and start making big money.
The document discusses various technical analysis patterns that can indicate reversals or continuations of trends in stock prices. It describes reversal patterns like head and shoulders, double tops and bottoms, and rounding tops and bottoms. Continuation patterns discussed include triangles, flags, pennants, wedges, rectangles, and cups and handles. Key characteristics of each type of pattern are provided such as requirements for confirmation of the pattern and targets for price movements.
Stock chart-Chart patterns and formations-Analysis of chart patternAkbarAli309
This document discusses stock charts and chart patterns. It begins by defining different types of stock charts, including line charts, bar charts, and candlestick charts. It then explains common chart patterns such as double tops and bottoms, head and shoulders, triangles, channels, and wedges. Key aspects of these patterns like support and resistance zones are described. The document provides examples of each pattern and discusses how technical analysts use patterns to potentially predict future price movements and identify reversal signals.
This document provides an overview of technical analysis. It defines technical analysis as attempting to forecast stock prices based on market data like price and volume over time. Technicians look for trends and patterns that may indicate future price movements. The document discusses various chart types, patterns, indicators, and theories used in technical analysis like moving averages, MACD, RSI, Dow Theory and Elliott Wave. It also notes some of the potential benefits of market timing but challenges of doing so successfully. In summary, the document introduces the key concepts and techniques of the technical analysis approach to analyzing financial markets.
How to Trade Chart Patterns with Target and SL@forexgdp.com.pdfmillatbd
This document discusses various chart patterns that can be used for technical analysis in forex trading. It describes continuation patterns like pennants, rectangles, and wedges that occur during trends, as well as reversal patterns like double tops/bottoms, head and shoulders, and triangles that signal a change in trend. Specific trading strategies are provided for each pattern, like waiting for breakouts of support/resistance levels before entering a trade. Both the advantages and disadvantages of using chart patterns are explored.
This document discusses various chart patterns used in technical analysis. It describes that chart patterns identify historical price action behaviors that can predict future price movements. There are two main types of patterns - continuation patterns that predict the continuation of existing trends, and reversal patterns that predict a change in the trend's direction. Some of the most important and profitable patterns to understand are double tops and bottoms, flags, pennants, rising and falling wedges, and head and shoulders patterns. These patterns are illustrated and examples are provided. The document emphasizes that sideways or consolidation periods in prices should not be seen as negative, as statistically profitable patterns require such periods to form.
This document provides an overview of technical analysis. It begins by explaining the philosophy behind technical analysis, which is that all known information is reflected in market prices and that prices tend to move in trends and repeat patterns due to human psychology. It then contrasts technical analysis with fundamental analysis. The rest of the document describes various technical tools used to analyze market trends and patterns, including charts (line, bar, candlestick), trend lines, support and resistance levels, moving averages, common patterns like head and shoulders and triangles, and indicators like MACD, RSI, Bollinger Bands, and stochastic oscillators. Fibonacci retracements are also discussed.
Technical analysis is the study of stock price movements by analyzing historical price data like charts and indicators. It assumes market prices reflect all known information and historical trends will repeat. Common techniques include analyzing price patterns, support/resistance levels, candlestick/line charts, moving averages, and indicators like RSI. Reversal patterns like head and shoulders or double tops signal trend changes, while continuation patterns like flags/triangles suggest pause before trend resumes. Technical analysis has weaknesses like requiring experience, potential bias, and inability to predict new phenomena.
- Technical analysis uses indicators like trends, chart patterns, and support/resistance levels to identify trading opportunities. It studies how market forces like supply and demand interact with price.
- Key concepts include identifying primary, secondary, and minor trends in prices; recognizing common chart patterns like head and shoulders, double tops/bottoms; and determining pivot points, gaps, and support/resistance levels.
- Charts like line charts, bar charts, and point and figure charts are used to visualize price movements over time and identify trends and trading signals. Technical analysis assumes past price movement predicts future prices.
Technical analysis is the forecasting of future asset prices based on past price movements. It uses charts, indicators, and patterns to analyze supply and demand forces influencing prices over time. The objectives are to determine the direction and extent of price trends, as well as when trends may reverse. Key aspects of technical analysis include identifying support and resistance levels, trendlines, moving averages, and common patterns like head and shoulders and triangles. Volume analysis and indicators provide additional context for interpreting price charts and anticipating trend changes.
The document provides an overview of technical analysis techniques used to analyze stock price movements and identify trends. It discusses concepts like trend identification, support and resistance levels, moving averages, chart patterns, candlestick patterns, and indicators like pivot points and gaps. The origin and key assumptions of technical analysis are explained. Different chart types are described, including line charts, bar charts, and candlestick charts. Common patterns like head and shoulders, triangles, and flags are also outlined.
Technical analysis uses past stock and security price data and trading volume to identify patterns and trends in prices. These patterns can be used to predict future price movements and identify good entry and exit points to buy and sell securities. Technical analysts study charts of price movements and indicators like moving averages and oscillators to identify trends, support and resistance levels, and signals that a trend may be reversing. The goal is to profit from short-term trading based on these technical studies rather than fundamental analysis of the security.
Technical analysis uses past stock and security price data and trading volume to identify patterns and trends in prices. These trends are then used to predict future price movements and identify good entry and exit points. Key aspects of technical analysis include identifying uptrend and downtrend lines using charts, understanding support and resistance levels, analyzing trading volume changes, and using indicators and oscillators to validate trends identified by price and volume data. The overall goal is to predict short-term price movements rather than long-term investments.
Unlock the secret to making consistent profits in trading! In here, we will learn the
most profitable chart patterns that can skyrocket your earnings. Whether you’re new or experienced, these patterns are your key to success.
Chart patterns are graphical representations of price movements in financial markets, usually depicted on a price chart. Traders and analysts use these patterns in technical
analysis to identify potential future price movements and make informed trading decisions.
Identifying profitable chart patterns is essential for successful trading. These patterns are helpful in finding entry and exit points, reflecting market psychology, aiding in risk
management, and forming the basis for trading setups and strategies.
They have historical reliability and can increase the probability of successful trades.
However, it’s important to use chart patterns in conjunction with other analyses and be
aware of the risks involved in trading.
Reversal patterns are specific formations on a price chart that indicate a potential change in
the direction of a prevailing trend. They serve as signals for traders that a trend reversal
might be occurring. These patterns suggest that the current trend, whether it’s going up or down, may be coming to an end, and a new trend in the opposite direction could be starting.
Reversal patterns are important because they help traders identify potential turning points in the market. By recognizing these patterns, traders can anticipate when a trend is losing
momentum and prepare to take advantage of the new direction that might emerge.
Reversal patterns can provide early indications that the existing trend is weakening and that it might be a good time to consider changing one’s trading strategy.
These patterns can take different forms, such as a double top/bottom, head, and shoulders.
Each pattern has its own unique characteristics, but they all share the common purpose of
suggesting a possible trend reversal. Traders analyze these patterns and use them in
conjunction with other indicators to confirm the reversal and make informed trading decisions.
It’s important to note that while reversal patterns can be reliable indicators, they are
not foolproof guarantees of a trend reversal. Traders should always consider other
factors, such as market conditions, volume, and additional technical indicators, to increase the accuracy of their analysis and avoid making hasty decisions based solely on the presence of a reversal pattern.
Continuation patterns are shapes on a chart that show a short break or rest in an ongoing
trend before it starts again. These patterns play a vital role in identifying these pauses,
allowing traders to recognize when a trend is likely to continue. They confirm the trend’s
direction and help manage trades effectively.
Continuation patterns help traders recognize periods of consolidation, indicating that market
participants are taking a break and causing the price to move within a specific range
temp
How To Use Multiple Timeframes and Trend linesNetpicksTrading
1) Drawing trend lines on multiple timeframes can help determine the overall trend direction and potential trade entry points, even if some timeframes show conflicting trends.
2) Trend lines define the relationship between swing highs and lows and can indicate whether a trend is accelerating or decelerating. They provide targets and alerts for potential trades.
3) Using trend lines from higher timeframes provides important context for trades identified on lower timeframes. Trades should follow the larger trend direction.
This document provides an introduction to technical analysis and its key concepts and techniques. It discusses the basic assumptions of technical analysis, including that the market discounts everything, price moves in trends, and history tends to repeat itself. It then covers various charting techniques like line charts, bar charts, candlestick charts, and point and figure charts. It also discusses important concepts in technical analysis like chart patterns, trends, trend lines, channels, support and resistance, and specific patterns like head and shoulders, cup and handle, double tops/bottoms, triangles, flags, and pennants.
This document provides statistics and guidelines for identifying and analyzing broadening bottoms chart patterns. Broadening bottoms are middle-of-the-road performers with break-even failure rates around 10% except in bull markets when they are higher. Surprisingly, throwbacks hurt performance and tall, narrow patterns perform better than others. The document defines identification guidelines including a downward price trend, megaphone shape, and at least two minor highs and lows. It also notes statistics such as average rises/declines and failure rates in bull versus bear markets.
This document summarizes a project presentation for a web application called "Timing the Market" created by a group of 6 software engineers. The application provides technical analysis indicators and algorithms to help users time the stock market. It obtains end of day and delayed stock data through a web service interface. The group evaluated similar existing applications and conducted research on technical analysis techniques like Dow Theory, Elliot Wave Theory, and pattern recognition before developing the web application and its features. They have now completed the project and are presenting their work.
This document provides an overview of technical analysis in 3 paragraphs or less:
Technical analysis uses historical market data, particularly price and volume, to identify trends and predict future market movements. Charts like bar charts and candlestick charts are used to identify patterns indicating trends are strengthening or reversing. Technical indicators like moving averages, MACD, and ADX are analyzed to determine whether the market is trending or consolidating. Common chart patterns like head and shoulders and double tops/bottoms provide additional signals on the strength and direction of trends. Volume analysis is also important, with increasing volume confirming trends and decreasing volume indicating potential reversals.
Technical analysis is the study of market data like price and volume to forecast future price movements. Technicians look for trends and patterns that indicate bullish or bearish sentiment. Key concepts include support/resistance, trends (up, down, sideways), and common candlestick and chart patterns. Technical indicators help quantify trends, like moving averages, MACD, RSI and Bollinger Bands. Together, patterns and indicators provide signals for entry and exit points within an established trend.
A fundamental study on Technical AnalysisJay Sadhwani
Technical analysis is the use of historical price and volume data to forecast future price movements. It is based on the assumptions that market prices reflect all known information, that prices trend, and that history repeats itself. There are various chart types used including line charts, bar charts, candlestick charts, and point and figure charts. Key aspects of technical analysis include identifying trends, measuring trend strength, finding low risk entry points, using stop losses, and exiting when trends reverse. Technical analysis focuses on price movements to predict the future, while weaknesses include subjectivity and interpretation of patterns.
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Top 10 Free Accounting and Bookkeeping Apps for Small BusinessesYourLegal Accounting
Maintaining a proper record of your money is important for any business whether it is small or large. It helps you stay one step ahead in the financial race and be aware of your earnings and any tax obligations.
However, managing finances without an entire accounting staff can be challenging for small businesses.
Accounting apps can help with that! They resemble your private money manager.
They organize all of your transactions automatically as soon as you link them to your corporate bank account. Additionally, they are compatible with your phone, allowing you to monitor your finances from anywhere. Cool, right?
Thus, we’ll be looking at several fantastic accounting apps in this blog that will help you develop your business and save time.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
4. Introduction
The origins of chart patterns can be found in the work of Charles Dow in a series of articles published
in his editorials for The Wall Street Journal from 1900-1902. His views were later developed into
what is now known as “Dow Theory.” Dow’s observations of price trends and his understanding or
trend based on the progression of peaks and troughs form the foundation for modern-day technical
analysis.
The observations that Dow made, and the methodologies found in technical analysis are fractal in
nature. This means that the techniques used can be applied to any aggregation period whether its
intraday, daily, weekly or monthly.
As you study charts and look to identify patterns, you’ll want to spend time to identify the successive
peaks and troughs or highs and lows. Also, as part of your pattern recognition it is important to be
able to identify the previous trend based on the aggregation period being used. The combination of
the previous trend and the current highs and lows will form the foundation for proper chart pattern
recognition.
This resource is intended to introduce you to 50 different price patterns. With every price pattern
there is a setup, a trigger and a projected move. For each pattern, there is a description of whether
the pattern is bullish, bearish or non-directional. Whether it’s a signal of a continuation of the trend,
a reversal of the trend, or is non-directional. Also, there is a description of how volume develops
during the formation of the pattern, and how to establish a price projection based on the measuring
technique for each pattern.
Statistical references in this book is taken from the Encyclopedia of Chart Patterns by Thomas
Bulkowski. His work represents the most comprehensive study of the effectiveness of chart patterns
to date.
1
5. 1.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern forms at the tail end of a downtrend. The pattern takes on the appearance
of a megaphone as the price forms a series of higher highs and lower lows throughout the formation. The
pattern needs at least two highs and lows to be a valid formation.
Volume Description: The volume should diminish through the pattern up until the breakout
Breakout Confirmation: A close above the upper trend-line on above average volume.
Measuring Technique: Measure from the highest high to the lowest low before the breakout, and add that
amount to the highest high for the price target.
Statistical Notes: Wider megaphones tend to perform better than narrower formations. Formations near 1-
year lows tend to perform better.
2
6. 2.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern forms at the tail end of an uptrend. The pattern takes on the appearance of a
megaphone as the price forms a series of higher highs and lower lows throughout the formation. The pattern
needs at least two highs and lows to be a valid formation.
Volume Description: The volume should diminish through the pattern up until the breakout
Breakout Confirmation: A close below the lower trend-line on above average volume.
Measuring Technique: Measure from the highest high to the lowest low before the breakout and subtract
that amount from the lowest low for the price target.
Statistical Notes: Wider megaphones tend to perform better than narrower formations. Formations near 1-
year highs tend to perform better.
3
7. 3.
Directional Bias: Bullish
Pattern Type: Non-Directional
Pattern Description: This pattern is comprised of three phases and looks similar to a frying pan. There is the
lead-in phase, the bump phase and the uphill run. The lead-in phase is the handle of the frying pan before a
larger decline. Following the decline, the bump phase forms as the price forms a flat or rounded bottom. The
uphill run phase is after the breakout. For this type of formation to be analyzed an arithmetic chart will need
to be used.
Volume Description: Volume is typically high at the beginning of each phase and decreases throughout each
phase.
Breakout Confirmation: A close above the upper trend-line drawn across the highs, during the lead-in phase,
with above average volume.
Measuring Technique: The price target is the highest point of the lead-in phase.
Statistical Notes: Wider formations tend to perform better than narrower formations, and a throwback
following a breakout tends to hurt performance.
4
8. 4.
Directional Bias: Bearish
Pattern Type: Non-Directional
Pattern Description: This pattern is comprised of three phases and looks similar to a mountain range. There
is the lead-in phase, the bump phase and the downhill run. The lead-in phase is like a small range of foothills
before the larger mountains. Following an advance, the bump phase forms as the price forms a flat or
rounded top. The downhill run phase is after the breakout. For this type of formation to be analyzed an
arithmetic chart will need to be used.
Volume Description: Volume is typically high at the beginning of each phase and decreases throughout each
phase.
Breakout Confirmation: A close below the lower trend-line drawn across the lows, during the lead-in phase,
with above average volume.
Measuring Technique: The price target is the lowest point of the lead-in phase.
Statistical Notes: Wider formations tend to perform better than narrower formations, and a pullback
following a breakout tends to hurt performance.
5
9. 5.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer uptrend and is characterized by the
price forming a u-shaped cup with a short handle on the right. The duration of the cup should last at least 7
weeks if using a daily chart.
Volume Description: Volume will typically follow the shape of the cup, with high volume as the left lip forms,
falling volume as the bottom of the cup forms and rising volume toward the right lip and on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn across the handle with above average
volume.
Measuring Technique: The price target is obtained by measuring the right lip to the bottom of the cup and
then added to the price level of the right lip.
Statistical Notes: The pattern has a low failure rate but doesn’t move as strongly as other patterns. Patterns
with shorter handles perform better than longer handles, and deeper cups with the left lip slightly higher than
the right lip perform better.
6
10. 6.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer downtrend and is characterized by
the price forming an inverted u-shaped cup with a short handle on the right. The duration of the cup should
last at least 7 weeks if using a daily chart.
Volume Description: Volume will typically follow the opposite of the shape of the cup, with high volume as
the left lip forms, falling volume as the rounded top of the cup forms and rising volume toward the right lip
and on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn across the handle with above average
volume.
Measuring Technique: The price target is obtained by measuring the right lip to the top of the cup and then
subtracted from the price level of the right lip.
Statistical Notes: The pattern has a low failure rate but doesn’t move as strongly as other patterns. Patterns
with shorter handles perform better than longer handles, and deeper cups with the left lip slightly lower
than the right lip perform better.
7
11. 7.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer downtrend. Initially the pattern begins
a broadening formation with higher highs and lower lows, but then begins to narrow with lower highs and
higher lows.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn across the downward-sloping highs with
above average volume.
Measuring Technique: Measure the widest point of the diamond’s range and add it to the breakout level.
Statistical Notes: Breakouts nears the 1-year low typically outperform, and throwbacks following the
breakout generally hurt performance. The pattern has a low failure rate with decent upside potential but
tend to fall-back once the target high is reached. Formations with more range between highs and lows
perform better than shorter ranges.
8
12. 8.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer uptrend. Initially the pattern begins a
broadening formation with higher highs and lower lows, but then begins to narrow with lower highs and
higher lows.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn across the upward-sloping highs with above
average volume.
Measuring Technique: Measure the widest point of the diamond’s range and subtract it from the breakout
level.
Statistical Notes: Breakouts near the 1-year high typically outperform, and pullbacks following the breakout
generally hurt performance. The pattern has a low failure rate with decent upside potential but tend to
fallback once the target high is reached. Formations with more range between highs and lows perform better
than shorter ranges.
9
13. 9.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer downtrend. The pattern forms two
equal lows with each low forming a v-shaped bottom with a single day’s candle touching the low.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn horizontally across the intervening high
between the lows with above average volume.
Measuring Technique: Measure the distance between the high and the two lows and add it to the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left bottom performs better.
10
14. 10.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer downtrend. The pattern forms two
equal lows with one low forming a v-shaped bottom with a single day’s candle touching the low and the other
forming a wider bottom.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn horizontally across the intervening high
between the lows with above average volume.
Measuring Technique: Measure the distance between the high and the two lows, and add it to the breakout
level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left bottom performs better.
11
15. 11.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer downtrend. The pattern forms two
equal lows with each low forming a wider, rounded bottom.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn horizontally across the intervening high
between the lows with above average volume.
Measuring Technique: Measure the distance between the high and the two lows and add it to the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left bottom performs better.
12
16. 12.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer uptrend. The pattern forms two
equal highs with each high forming a v-shaped top with a single day’s candle touching the high.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn horizontally across the intervening low
between the highs with above average volume.
Measuring Technique: Measure the distance between the low and the two highs and subtract it from the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left top performs better.
13
17. 13.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer uptrend. The pattern forms two equal
highs with one high forming a v-shaped top with a single day’s candle touching the high and the other
forming a wider, more rounded top.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn horizontally across the intervening low
between the highs with above average volume.
Measuring Technique: Measure the distance between the low and the two highs, and subtract it from the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left top performs better.
14
18. 14.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer uptrend. The pattern forms two
equal highs with each high forming a wider, more rounded top.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn horizontally across the intervening low
between the highs with above average volume.
Measuring Technique: Measure the distance between the low and the two highs, and subtract it from the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left top performs better.
15
19. 15.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer uptrend and following a steep, quick
upward move. Following the move, the pattern then forms a short horizontal or downward sloping channel
shaped like a flag. The flag portion of the pattern shouldn’t last more than 3-4 weeks if on a daily chart.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn across the highs with above average
volume.
Measuring Technique: Measure the length of the previous steep move leading into the flag, and then add
that amount to the breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Flag formations that breakout in the direction of the prevailing market trend tend to perform better, and
flags without gaps tend to perform better.
16
20. 16.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer downtrend and following a steep,
quick downward move. Following the move, the pattern then forms a short horizontal or upward sloping
channel shaped like a flag. The flag portion of the pattern shouldn’t last more than 3-4 weeks if on a daily
chart.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn across the lows with above average volume.
Measuring Technique: Measure the length of the previous steep move leading into the flag, and then
subtract that amount from the breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Flag formations that breakout in the direction of the prevailing market trend tend to perform better, and flags
without gaps tend to perform better. Bull flags typically perform better than bear flags.
17
21. 17.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern is represented by a narrow consolidation range that may last from several
days to several weeks following a doubling in the stock price.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn across the highs with above average
volume.
Measuring Technique: Measure the length of the previous trend from low to high leading into the flag,
and then add one-half that amount to the breakout level.
Statistical Notes: Formations with less range between highs and lows perform better than wider ranges.
Throwbacks hurt performance.
18
22. 18.
Directional Bias: Non-Directional
Pattern Type: Reversal
Pattern Description: Area gaps are common gaps that occur within or just following a consolidation. An area
gap is identified by the hook in the price that typically occurs within a week to fill the gap.
Volume Description: Volume tends to be high on the gap day but levels off quickly.
Breakout Confirmation: A close above or below the high or low of the gap day in the opposite direction of
the gap.
Measuring Technique: The expectations for movement is the price closing the gap and the price returning
to the pre-gap level.
Statistical Notes: Bearish and bullish area gaps typically fill within a week nearly 90% of the time regardless
of the prevailing market direction.
19
23. 19.
Directional Bias: Non-Directional
Pattern Type: Continuation
Pattern Description: Breakaway gaps can be bullish or bearish and typically occur at the outset of a new
trend following a consolidation phase. Following the gap, the price continues to rising to form higher highs
and lows.
Volume Description: Volume tends to be significantly higher on the gap day versus the previous day and
continues to be elevated for several days.
Breakout Confirmation: A breakout from a consolidation and a continuation in the price movement in the
direction of the gap following the gap day.
Measuring Technique: The expectations for movement is based on the price making a move that is two
times the size of move to the high gap day.
Statistical Notes: Breakaway gaps tend to not close the gap quickly, often times taking six months or longer.
Larger gaps tend to perform better than smaller gaps, and gaps that occur near a 12-month high or low
perform bette 20
24. 20.
Directional Bias: Non-Directional
Pattern Type: Continuation
Pattern Description: Continuation gaps can be either bullish or bearish and typically occur near the middle
of the preceding trend. The gap itself is a rather sharp rise in the price. These gaps are less common and will
typically remain open following a gap to a new high or low in the direction of the preceding trend
Volume Description: Volume tends to be high on the gap day, but not unusually high.
Breakout Confirmation: A gap in price to a new high or low on higher volume in the middle of a trend. The
price subsequently holds the gap level.
Measuring Technique: Since the move occurs in the middle of the trend, the projection would be the prior
move to the middle of the gap and then added or subtracted from that middle value.
Statistical Notes: The bearish gap size in bear markets tends to be larger than bullish gaps in bullish markes.
21
25. 21.
Directional Bias: Non-Directional
Pattern Type: Reversal
Pattern Description: Exhaustion gaps are gaps that occur later in the trend—which tend to be larger in size
and pause for a couple days following the gap before forming a new high or low.
Volume Description: Most exhaustion gaps occur on high volume, and represent the last “gasp” before the
trend ends.
Breakout Confirmation: A large gap on high volume that occurs following a continuation gap near the end of
the trend. The price fails to form a new high or low following the gap and then closes below the low of the
gap day.
Measuring Technique: The target price is the high or low of the day prior to the gap.
Statistical Notes: Within one week nearly two-thirds of exhaustion gaps close, and within two weeks over
90% of gaps close.
22
26. 22.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs at the bottom of a downtrend and is identified by three-valley
formation with the center valley, or low, forming a lower low than the other two. The neckline is a trend-line
that is drawn across the intervening highs and should be horizontal or downward sloping to the breakout
area. There should be a degree of symmetry between the formation of the two shoulders and the head.
Volume Description: Volume tends to be high leading into the down move of the first shoulder, diminishes as
the price rises completing the left shoulder, is balanced during the formation of the head, and expands as
the price breaks above the neckline.
Breakout Confirmation: A close above the neckline with above average volume.
Measuring Technique: Measure the distance between the first high to the low of the head, and then add that
amount to the neckline on the breakout.
Statistical Notes: Gaps on the breakout day tend to help performance along with tall narrow patterns.
23
27. 23.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs at the bottom of a downtrend and is identified by a multiple
shoulders and/or head formation. The neckline is a trend-line that is drawn across the intervening highs and
should be horizontal or downward sloping to the breakout area. There should be a degree of symmetry
between the formation of the shoulders and head(s).
Volume Description: Volume tends to be higher on the left shoulders during the down-moves, balanced
toward the head(s) and expanding on the breakout of the neckline.
Breakout Confirmation: A close above the neckline with above average volume.
Measuring Technique: Measure the distance between the first high to the low of the head, and then add
that amount to the neckline on the breakout.
Statistical Notes: Gaps on the breakout day tend to help performance along with down-sloping necklines.
24
28. 24.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs in the middle of an uptrend and is identified by three-valley formation
with the center valley, or low, forming a lower low than the other two. The neckline is a trend-line that is drawn
across the intervening highs and should be horizontal or downward sloping to the breakout area. There
should be a degree of symmetry between the formation of the two shoulders and the head.
Volume Description: Volume tends to be high leading into the down move of the first shoulder, diminishes as
the price rises completing the left shoulder, is balanced during the formation of the head, and expands as the
price breaks above the neckline.
Breakout Confirmation: A close above the neckline with above average volume.
Measuring Technique: Measure the distance between the first high to the low of the head, and then add that
amount to the neckline on the breakout.
Statistical Notes: Gaps on the breakout day tend to help performance along with tall narrow patterns.
25
29. 25.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs at the bottom of a downtrend and is identified by three-peak
formation with the center peak, or high, forming a higher high than the other two. The neckline is a trend-line
that is drawn across the intervening lows and should be horizontal or upward sloping to the breakout area.
There should be a degree of symmetry between the formation of the two shoulders and the head.
Volume Description: Volume tends to be high leading into the upward move of the first shoulder,
diminishes as the price falls completing the left shoulder, is balanced during the formation of the head, and
expands as the price breaks below the neckline.
Breakout Confirmation: A close below the neckline with above average volume.
Measuring Technique: Measure the distance between the first low to the high of the head, and then subtract
that amount from the neckline on the breakout.
Statistical Notes: Gaps on the breakout day tend to help performance along with tall narrow patterns.
26
30. 26.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs at the top of a uptrend and is identified by a multiple shoulders
and/or head formation. The neckline is a trend-line that is drawn across the intervening lows and should be
horizontal or upward sloping to the breakout area. There should be a degree of symmetry between the
formation of the shoulders and head(s).
Volume Description: Volume tends to be higher on the left shoulders during the up-moves, balanced
toward the head(s) and expanding on the breakout below the neckline.
Breakout Confirmation: A close below the neckline with above average volume.
Measuring Technique: Measure the distance between the first low to the high of the head, and then
subtract that amount from the neckline on the breakout.
Statistical Notes: Gaps on the breakout day tend to help performance along with upward-sloping necklines.
27
31. 27.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern is formed on a weekly chart with two downward price spikes separated by a
week. The center week should form significantly higher low than the other two weeks.
Volume Description: Volume tends to be higher on the first downward spike and lower on the second.
Breakout Confirmation: A close above the highest high within the 3-week range.
Measuring Technique: The price target is set by taking the difference between the highest high and lowest
low in the 3-week period, and then adding that amount to the highest high.
Statistical Notes: Horn formations perform best when the right spike range falls within the range of the left
spike. Patterns with a wider range between high and low perform best.
28
32. 28.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This is a rare pattern that is formed on a weekly chart with two upward price spikes
separated by a week. The center week should form significantly lower high than the other two weeks.
Volume Description: Volume tends to be higher on the first upward spike and lower on the second.
Breakout Confirmation: A close above the lowest low within the 3-week range.
Measuring Technique: The price target is set by taking the difference between the highest high and
lowest low in the 3-week period, and then subtracting that amount from the lowest low.
Statistical Notes: Horn formations perform best when the left spike range falls within the range of the right
spike. Patterns with a wider range between high and low perform best.
29
33. 29.
Directional Bias: Non-Directional
Pattern Type: Reversal
Pattern Description: There is a price gap either up or down and then a subsequent gap back to the previous
level before the initial gap leaving an island in the price chart. The average length of an island just over a
month but can last as little as a single day to over 6 months.
Volume Description: Volume tends to decline after the initial surge on the first gap, and then expands on the
second gap.
Breakout Confirmation: A gap to the previous level before the initial gap with above average volume.
Measuring Technique: Take the range between the highest high and low of the island and add or subtract
that amount from the highest high or low depending on whether it is a bullish or bearish gap.
Statistical Notes: Pullback and throwbacks hurt performance, and short patterns with a wider range from
high to low perform best.
30
34. 30.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer uptrend and following a steep, quick
upward move. Following the move, the pattern then forms a short triangle formation with converging trend-
lines. The pennant portion of the pattern shouldn’t last more than 3-4 weeks if on a daily chart.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn across the highs with above average
volume.
Measuring Technique: Measure the length of the previous steep move leading into the pennant, and then
add that amount to the breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Pennant formations that breakout in the direction of the prevailing market trend tend to perform better,
and pennants without gaps tend to perform better.
31
35. 31.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: This pattern occurs within the context of a longer downtrend and following a steep,
quick downward move. Following the move, the pattern then forms a short triangle formation with
converging trend-lines. The flag portion of the pattern shouldn’t last more than 3-4 weeks if on a daily chart.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn across the lows with above average volume.
Measuring Technique: Measure the length of the previous steep move leading into the pennant, and then
subtract that amount from the breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Pennant formations that breakout in the direction of the prevailing market trend tend to perform better, and
pennants without gaps tend to perform better.
32
36. 32.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: Two consecutive downward intra-week price spikes on a weekly chart.
Volume Description: Volume tends to be higher for the left spike than the right, but both weeks tend to
have above average volume.
Breakout Confirmation: A close above the highest high of the two weekly spikes with above average
volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the two pipes, and then
add it to the highest high.
Statistical Notes: Throwbacks hurt performance, and wider ranges between highs and lows perform better
than shorter ranges. A right spike range that falls within the range of the left spike performs best.
33
37. 33.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: Two consecutive upward intra-week price spikes on a weekly chart.
Volume Description: Volume tends to be higher for the left spike than the right, but both weeks tend to
have above average volume.
Breakout Confirmation: A close below the lowest low of the two weekly spikes with above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the two pipes, and then
subtract it from the lowest low.
Statistical Notes: Throwbacks hurt performance, and wider ranges between highs and lows perform better
than shorter ranges. A right spike range that falls within the range of the left spike performs best.
34
38. 34.
Directional Bias: Bullish or Bearish
Pattern Type: Reversal or Continuation
Pattern Description: A rectangle is a non-directional pattern that can result in either a bullish or bearish
breakout. A Rectangle Bottom is defined by the previous downtrend before the formation. The formation is
when the price oscillates between two horizontal price levels or channel.
Volume Description: Volume tends to decrease throughout the formation regardless of the direction it
breaks out and expands on the breakout.
Breakout Confirmation: A close above or below the channel with above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the channel and then add or
subtract that amount from the channel depending on the direction it breaks out.
Statistical Notes: Throwbacks hurt performance, and wider ranges between highs and lows perform better
than shorter ranges. Rectangles without a pre-formation rise or fall and which have rising volume trends
perform the best.
35
39. 35.
Directional Bias: Bullish or Bearish
Pattern Type: Reversal or Continuation
Pattern Description: A rectangle is a non-directional pattern that can result in either a bullish or bearish
breakout. A Rectangle Top is defined by the previous uptrend before the formation. The formation is when
the price oscillates between two horizontal price levels or channel.
Volume Description: Volume tends to decrease throughout the formation regardless of the direction it
breaks out, and expands on the breakout.
Breakout Confirmation: A close above or below the channel with above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the channel and then add or
subtract that amount from the channel depending on the direction it breaks out.
Statistical Notes: Throwbacks hurt performance, and wider ranges between highs and lows perform better
than shorter ranges. Rectangles with a falling volume trend and high volume on the breakout tend to
perform the best.
36
40. 36.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: A Rounding Bottom pattern is a continuation pattern of the prevailing uptrend. The
pattern forms a concave or “rounded” bottom to its price.
Volume Description: Volume will tend to mirror the price as it rises and falls with the price then expands on
the breakout.
Breakout Confirmation: The confirmation for this pattern is a close above the lip of the Rounding Bottom on
above average volume. This can be difficult at times when there isn’t an apparent lip on the left-hand side of
the formation.
Measuring Technique: Subtract the height of the highest high and lowest low of the Rounding Bottom and
then add that to the breakout level.
Statistical Notes: Throwbacks hurt performance, and patterns with wide ranges between highs and lows or
longer forming patterns perform better.
37
41. 37.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: A Rounding Top pattern is a continuation pattern of the prevailing downtrend. The
pattern forms a concave or “rounded” top to its price.
Volume Description: Volume will tend to have a u-shaped pattern and expand on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the lip of the Rounding Top on
above average volume. This can be difficult at times when there isn’t an apparent lip on the left-hand side of
the formation.
Measuring Technique: Subtract the height of the highest high and lowest low of the Rounding Top and
then subtract that from the breakout level.
Statistical Notes: Throwbacks hurt performance, and patterns with wide ranges between highs and lows or
longer forming patterns perform better.
38
42. 38.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: A Scallop forms a high, corrects a little before forming a higher high. The pattern looks
like the letter “J.”
Volume Description: Volume will tend to mirror the price as it rises and falls with the price then expands on
the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the rising J formation on above
average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then
subtract that value from the breakout level.
Statistical Notes: Breakouts near a 1-year low perform best along with taller formations with a rising volume
trend.
39
43. 39.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: The pattern occurs within an uptrend and looks like a backwards and upside-down J with
the price rising to a rounded high and a slight decline.
Volume Description: Volume will tend experience a rising volume trend and expand on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close above the rounded top of the formation on
above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then add
that value to the breakout level.
Statistical Notes: Breakouts near a 1-year high perform best along with taller formations with a rising volume
trend.
40
44. 40.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: A Scallop occurs within a downtrend and is formed as the price falls before forming a
rounded bottom and then corrects upward. The pattern looks like a backwards letter “J.”
Volume Description: Volume will tend to be dome-shaped and expand on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the rising backwards J formation on
above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then
subtract that value from the breakout level.
Statistical Notes: Breakout day gaps on high volume perform best. 41
45. 41.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: The pattern occurs within a downtrend and looks like an upside-down J with the price
rising slightly to a rounded high and a larger decline.
Volume Description: Volume will tend experience a u-shaped volume trend and expand on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the low of the upside-down J on
above average volume, following a short bullish bounce in the price.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then
subtract that value from the breakout level.
Statistical Notes: Breakouts near a 1-year low perform best along with taller formations with a u-shaped
volume trend.
42
46. 42.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: A pattern of three proportionally lower highs that typically occur at the end of an
uptrend.
Volume Description: The pattern performs best with a u-shaped volume trend and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the lowest low of the formation on
above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then
subtract this amount from the breakout level. With this pattern, the measured move isn’t achieved with
regularity.
Statistical Notes: Short and narrow patterns with u-shaped volume perform best.
43
47. 43.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: A pattern of three proportionally higher lows that typically occur at the end of a
downtrend.
Volume Description: The pattern typically exhibits a dome-shaped volume trend during the formation and
expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the highest high of the formation on
above average volume.
Measuring Technique: Subtract the height of the highest high and lowest low of the pattern and then add
this amount to the breakout level. With this pattern, the measured move isn’t achieved with regularity.
Statistical Notes: Breakouts near one-year highs perform best. Wide ranges between highs and lows with u-
shaped volume do well.
44
48. 44.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs within an uptrend and consists of equal highs and rising lows forming
a triangle. The pattern should breakout within two-thirds to three-quarters of the way to the apex of the
triangle.
Volume Description: The volume declines throughout the triangle formation and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close above the highs on above average
volume.
Measuring Technique: Subtract the height of the highs and lowest low of the pattern and then add this
amount to the breakout level.
Statistical Notes: Performs better with rising volume on the breakout, with throwbacks hurting performance.
45
49. 45.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: This pattern occurs within a downtrend and consists of equal lows and falling highs
forming a triangle. The pattern should breakout within two-thirds to three-quarters of the way to the apex of
the triangle.
Volume Description: The volume declines throughout the triangle formation and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the lows on above average
volume.
Measuring Technique: Subtract the height of the lows and highest high of the pattern and then subtract this
amount from the breakout level.
Statistical Notes: Performs better with rising volume on the breakout, with pullbacks hurting performance.
46
50. 46.
Directional Bias: Bullish or Bearish
Pattern Type: Continuation or Reversal
Pattern Description: A Symmetrical Triangle is a non-directional pattern that can result in either a bullish or
bearish breakout. This pattern consists of lower highs and higher lows forming a triangle. The pattern should
breakout within two-thirds to three-quarters of the way to the apex of the triangle.
Volume Description: The volume declines throughout the triangle formation and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close above or below the converging trend-lines
on above average volume.
Measuring Technique: Subtract the height of the lowest low and highest high of the pattern and then
subtract or add this amount to the breakout level depending on the direction of the breakout.
Statistical Notes: Performs better near one-year highs or lows. Throw-backs and pull-backs hurt performance.
47
51. 47.
Directional Bias: Bullish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer downtrend. The pattern forms three
equal lows.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close above the upper trend-line drawn horizontally across the intervening highs
between the lows with above average volume.
Measuring Technique: Measure the distance between the high and the two lows and add it to the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left bottom performs better.
48
52. 48.
Directional Bias: Bearish
Pattern Type: Reversal
Pattern Description: This pattern occurs within the context of a longer uptrend. The pattern forms three
equal highs.
Volume Description: Volume tends to drift downward during the formation and expand on the breakout.
Breakout Confirmation: A close below the lower trend-line drawn horizontally across the intervening lows
between the highs with above average volume.
Measuring Technique: Measure the distance between the low and the two highs and subtract it from the
breakout level.
Statistical Notes: Formations with more range between highs and lows perform better than shorter ranges.
Formations with declining volume with heavy volume on the left top performs better.
49
53. 49.
Directional Bias: Bullish
Pattern Type: Continuation
Pattern Description: This pattern occurs within an uptrend and consists of lower lows and lower highs
forming a falling wedge shape. The descending trendlines across the highs and lows should have at least five
touches between them. The pattern should breakout within two-thirds to three-quarters of the way to the
apex of the wedge.
Volume Description: The volume declines throughout the wedge formation and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close above the upper descending trendline
drawn across the highs on above average volume.
Measuring Technique: The projected target price for this pattern is the highest high of the formation.
Statistical Notes: Performs better with rising volume on the breakout, with pullbacks hurting performance.
Patterns with wider ranges between the highs and lows perform better.
50
54. 50.
Directional Bias: Bearish
Pattern Type: Continuation
Pattern Description: This pattern occurs within a downtrend and consists of rising highs and lows forming a
rising wedge shape. The ascending trendlines across the highs and lows should have at least five touches
between them. The pattern should breakout within two-thirds to three-quarters of the way to the apex of the
triangle.
Volume Description: The volume declines throughout the wedge formation and expands on the breakout.
Breakout Confirmation: The confirmation for this pattern is a close below the lower ascending trendline
drawn across the lows on above average volume.
Measuring Technique: The projected target price for this pattern is the lowest low of the formation.
Statistical Notes: Performs better with rising volume on the breakout, with pullbacks hurting performance.
Patterns with wider ranges between the highs and lows perform better.
51