Price Pattern Completion PDF

PART 2: PRICE PATTERNS - - continuation - Extend reversal-pattern trend pattern before beforeuptrend emersal a a masule test 2 CONTINUATION CONTINUATION Continuation patterns give an advanced warning when a stock price is likely to resume its trend after a short consolidation period and how far the...

PART 2: PRICE PATTERNS - - continuation - Extend reversal-pattern trend pattern before beforeuptrend emersal a a masule test 2 CONTINUATION CONTINUATION Continuation patterns give an advanced warning when a stock price is likely to resume its trend after a short consolidation period and how far the stock price is likely to move in that direction. Continuation bust odd X pattern Inless in uptrend/downtrend before ↓ leversal favour Gmestinya jadi X buat price projection so tgk past Of course, continuation patterns are not infallible, but they do put the odds of success in the favor. TYPES OF CONTINUATION ↓ 6 pattern Pennants Flags Wedges Triangles Rectangles Cup and Handle reversal > - 4 pattern PENNANTS Pennants are continuation patterns that form as the price of a stock moves into a tighter and tighter consolidation range. Pennants can be either bullish or bearish, depending on what the trend was before the pennant began to form. If a stock price was in an up trend before the pennant began to form, it is a bullish continuation pattern. If a stock price was in a down trend before the pennant began to form, it is a bearish continuation pattern. Pennants usually form over shorter periods of time. Kena lukis all 5 factor > CHARACTERISTICS OF PENNANTS -short period Resistance level (A) down-trending level of resistance that is converging with the support level Support level (B) up-trending level of support that is converging with the resistance level Flag pole (C) the trend preceding the formation of the pennant. The flag pole spans the distance from the beginning of the trend to the highest point of the pennant (bullish pennant), or the flag pole spans the distance from the beginning of the trend to the lowest point of the pennant (bearish pennant). CHARACTERISTICS OF PENNANTS Breakout point (D) the point at which the stock price breaks up above the downtrending level of resistance (bullish pennant), or the point at which the stock price breaks down below the up-trending level of support (bearish pennant). Price projection (E) the price to which the stock price will most likely fall after it has broken out of the pennant formation (bearish pennant), or the price to which the stock price will most likely rise after it has broken out of the pennant formation (bullish pennant). The distance the stock price is projected to move is equal to the height of the flag pole. CHARACTERISTICS OF PENNANTS Bullish Pennants CHARACTERISTICS OF PENNANTS I soalan Kena 10 Cerita markah d Lukis both bulld bear stabel R Top FP R Breakout II Breakout marobuz S... S ↓ FP uptrend downtrend Price projection PENNANTS FLAGS Flags are continuation patterns that form as the price of a stocks pulls back from the predominant trend in a parallel channel. Flags can be either bullish or bearish, depending on what the trend was before the flag began to form. If a stock price was in an up trend before the flag began to form, it is a bullish continuation pattern. If a stock price was in a down trend before the flag began to form, it is a bearish continuation pattern. Flags usually form over shorter periods of time. Setahun , 4 he 5 Kali down-trending level of resistance that is parallel with the support level (bullish flag), or an uptrending level of resistance that is parallel with the support level (bearish flag). Support level (B) Resistance level (A) CHARACTERISTICS OF FLAGS down-trending level of support that is parallel with the resistance level (bullish flag), or an up-trending level of support that is parallel with the resistance level (bearish flag). the trend preceding the formation of the flag. The flag pole spans the distance from the beginning of the trend to the highest point of the flag (bullish flag), or the flag pole spans the distance from the beginning of the trend to the lowest point of the flag (bearish flag). Breakout point (D) Flag pole (C) CHARACTERISTICS OF FLAGS the point at which the currency pair breaks up above the down-trending level of resistance (bullish flag), or the point at which the currency pair breaks down below the uptrending level of support (bearish flag). Price projection (E) CHARACTERISTICS OF FLAGS the price to which the currency pair will most likely fall after it has broken out of the flag formation (bearish flag), or the price to which the currency pair will most likely rise after it has broken out of the flag formation (bullish flag). The distance the currency pair is projected to move is equal to the height of the flag pole. CHARACTERISTICS OF FLAGS Bullish Flag Pattern Question + 10 marks FLAGS downtrend I alm Keadaan harga spergerakan bentuk channel ↑X R pp I S CFP) 1 B CFP) R T B S pp uptrend Downtrend FLAGS lighter tighter macam x panel tapi xleh tutap. WEDGES Wedges are continuation patterns that form as the price of a stock pulls back from the predominant trend and moves into a tighter and tighter consolidation range. Wedges can be either bullish or bearish, depending on what the trend was before the wedge began to form. If a stock price was in an up trend before the wedge began to form, it is a bullish continuation pattern. If a stock price was in a down trend before the wedge began to form, it is a bearish continuation pattern. Wedges usually form over shorter periods of time. CHARACTERISTICS OF WEDGES Resistance level (A) Support level (B) down-trending level of resistance that is converging with the support level (bullish wedge), or an up-trending level of resistance that is converging with the support level (bearish wedge). down-trending level of support that is converging with the resistance level (bullish wedge), or an uptrending level of support that is converging with the resistance level (bearish wedge). CHARACTERISTICS OF WEDGES Flag pole (C) Breakout point (D) the trend preceding the formation of the wedge. The flag pole spans the distance from the beginning of the trend to the highest point of the wedge (bullish wedge), or the flag pole spans the distance from the beginning of the trend to the lowest point of the wedge (bearish wedge). the point at which the stock price breaks up above the down-trending level of resistance (bullish wedge), or the point at which the stock price breaks down below the up-trending level of support (bearish wedge). CHARACTERISTICS OF WEDGES Price projection (E) the price to which the stock price will most likely fall after it has broken out of the wedge formation (bearish wedge), or the price to which the stock price will most likely rise after it has broken out of the wedge formation (bullish wedge). The distance the stock price is projected to move is equal to the height of the flag pole. CHARACTERISTICS OF WEDGES Bullish Wedges CHARACTERISTICS OF WEDGES Bearish Bullish FP R R B S V pp Xpp B S FP WEDGES FP 30 cent breakout , usually same 30 cent WEDGES WEDGES TRIANGLES Triangles are continuation patterns that form as the price of a stock hits a flat level of support or resistance and begins moving into a tighter and tighter consolidation range. Triangles can be either bullish or bearish, depending on what the trend was before the wedge began to form. If a stock price was in an up trend before the triangle began to form, it is a bullish continuation pattern. If a stock price was in a down trend before the triangle began to form, it is a bearish continuation pattern. Triangles usually form over longer periods of time. Setahun = 2-3 times only CHARACTERISTICS OF TRIANGLES Resistance level (A) horizontal level of resistance (bullish, or ascending triangle), or a down-trending level of resistance that is converging with the support level (bearish, or descending triangle). Support level (B) up-trending level of support that is converging with the resistance level (bullish, or ascending triangle), or a horizontal level of support (bearish, or descending triangle). CHARACTERISTICS OF TRIANGLES Flag pole (C) Breakout point (D) the trend preceding the formation of the triangle. The flag pole spans the distance from the beginning of the trend to the highest point of the triangle (bullish, or ascending triangle), or the flag pole spans the distance from the beginning of the trend to the lowest point of the triangle (bearish, or descending triangle). the point at which the stock price breaks up above the horizontal level of resistance (bullish, or ascending triangle), or the point at which the stock price breaks down below the horizontal level of support (bearish, or descending triangle). CHARACTERISTICS OF TRIANGLES Price projection (E) the price to which the stock price will most likely fall after it has broken out of the triangle formation (bearish, or descending triangle), or the price to which the stock price will most likely rise after it has broken out of the triangle formation (bullish, or ascending triangle). The distance the stock price is projected to move is equal to the height of the flag pole. CHARACTERISTICS OF TRIANGLES uptrend-bullish ascendinngical downtrend-beauch-descending Bullish Triangles TYPES OF TRIANGLES Symmetrical Ascending Descending TYPES OF TRIANGLES Refat R R upward S S uptrend downtrend S uptrend SYMMETRICAL The symmetrical triangle is a pattern in which two trendlines converge toward each other. This pattern is neutral in that a breakout to the upside or downside is a confirmation of a trend in that direction. R S SYMMETRICAL dalam chart secantik irl tru Xkan ASCENDING In an ascending triangle, the upper trendline is flat, while the bottom trendline is upward sloping. This is generally thought of as a bullish pattern in which chartists look for an upside breakout. * cannot be find every month. R = · S T ASCENDING too cannot be a is kurang DESCENDING -bearish In a descending triangle, the lower trendline is flat and the upper trendline is descending. This is generally seen as a bearish pattern where chartists look for a downside breakout. pecals pecan Portal sigan a R - ↓ feat S dowk frnd ↓ DESCENDING TYPES OF TRIANGLES TYPES OF TRIANGLES TYPES OF TRIANGLES DIFFERENCE BETWEEN PENNANTS AND TRIANGLES medium to long term Time frames Pennants are short-term patterns, typically extend 1-3 weeks that form after a steep advance or sharp decline. Anything longer is probably a triangle. Triangles are mediumterm or long-term patterns lideways tempat Sama ↑ RECTANGLE A Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is easily identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle. Rectangles are sometimes referred to as trading ranges, consolidation zones or congestion areas. RECTANGLE FP 1 R R S S FP in maybe ada terbelnar rikit RECTANGLE RECTANGLE Nak tunjuk kasi pattern Sebelum Jelepas Kejadian pattern - jangan crop ! RECTANGLE RECTANGLE CUP AND HANDLE nampak Satanuntsekali or dua Sahaja - no bearish , only bullish A cup and handle chart is a bullish continuation pattern in which the upward trend has paused but will continue in an upward direction once the pattern is confirmed. This price pattern forms what looks like a cup, which is preceded by an upward trend. The handle follows the cup formation and is formed by a generally downward/sideways movement in the security's price. Once the price movement pushes above the resistance lines formed in the handle, the upward trend can continue. There is a wide ranging time frame for this type of pattern, with the span ranging from several months to more than a year. CUP AND HANDLE sekali break handle break either pp uptrend one , bullish it bukan pattern cupd handle CUP AND HANDLE CUP AND HANDLE REVERSAL ↓ belajar > Total - 9 patent kena ingat altogether 3 only REVERSAL Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. P * make sure pattern berlaku confirm dah Also referred to as a "trend reversal", "rally" or "correction". A reversal can be a positive or negative change against the prevailing trend. REVERSAL If a reversal charts pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during a downtrend, it suggests that the price will move up later on. Hend > - Technical analysts watch for these patterns because they can indicate the need for a different trading strategy on the same security. > - up becisamam downtrend sell * bila akan + 3 mal kari before pattern reversal pattern reversal TYPES OF REVERSAL Double Tops/Bottoms Triple Tops/Bottoms Head and Shoulders Tops/Bottoms DOUBLE TOPS / BOTTOMS Double tops/bottoms are reversal patterns that form as the price hits a support or resistance level two times before the price turns around and moves in the opposite direction. Top top semua bearish , bottom bottom Semna bullish Double tops are bearish reversal patterns and double bottoms are bullish reversal patterns. If a stock price is in an up trend, it will form a double top. If a stock price is in a down trend, it will form a double bottom. Double tops/bottoms usually form over longer periods of time. Dalam setahun > - bulean monthly CHARACTERISTICS OF DOUBLE TOPS / BOTTOMS Resistance level (A) horizontal, or slightly angled, level of resistance. Support level (B) horizontal, or slightly angled, level of support. Breakout point (C) the point at which the price breaks up above the horizontal level of resistance (double bottom), or the point at which the price breaks down below the horizontal level of support (double top). CHARACTERISTICS OF DOUBLE TOPS / BOTTOMS Price projection (D) the price to which the price will most likely fall after it has broken out of the double-top formation, or the price to which the stock price will most likely rise after it has broken out of the double-bottom formation. The distance the price is projected to move is equal to the distance between the support and resistance levels. CHARACTERISTICS OF DOUBLE TOPS / BOTTOMS sentuh top J dua Kali. O O breakout CHARACTERISTICS OF DOUBLE TOPS / BOTTOMS CHARACTERISTICS OF DOUBLE TOPS / BOTTOMS lebih kurang DOUBLE TOPS / BOTTOMS DOUBLE TOPS / BOTTOMS pro ↓ price projection downtrend DOUBLE TOPS / BOTTOMS DOUBLE TOPS / BOTTOMS * Affigment + Sejaral TRIPLE TOPS / BOTTOMS Triple tops/bottoms are reversal patterns that form as the price hits a support or resistance level three times before the price turns around and moves in the opposite direction. Triple tops are bearish reversal patterns and triple bottoms are bullish reversal patterns. If a price is in an up trend, it will form a triple top. If a price is in a down trend, it will form a triple bottom. Triple tops/bottoms usually form over longer periods of time. CHARACTERISTICS OF TRIPLE TOPS / BOTTOMS Resistance level (A) horizontal, or slightly angled, level of resistance. Support level (B) horizontal, or slightly angled, level of support. Breakout point (C) the point at which the price breaks up above the horizontal level of resistance (triple bottom), or the point at which the price breaks down below the horizontal level of support (triple top). CHARACTERISTICS OF TRIPLE TOPS / BOTTOMS Price projection (D) the price to which the price will most likely fall after it has broken out of the triple-top formation, or the price to which the stock price will most likely rise after it has broken out of the triple-bottom formation. The distance the price is projected to move is equal to the distance between the support and resistance levels. CHARACTERISTICS OF TRIPLE TOPS / BOTTOMS O 8 j ↓ CHARACTERISTICS OF TRIPLE TOPS / BOTTOMS CHARACTERISTICS OF TRIPLE TOPS / BOTTOMS TRIPLE TOPS / BOTTOMS TRIPLE TOPS / BOTTOMS I ↑ * Chave I pattern reversal uptrend & downtrend nextweek TRIPLE TOPS / BOTTOMS TRIPLE TOPS / BOTTOMS TRIPLE TOPS / BOTTOMS TRIPLE TOPS / BOTTOMS or inverse head a shoulder HEAD AND SHOULDERS TOPS / BOTTOMS Head-and-shoulders tops are reversal patterns that form as the price hits a resistance level (forming the first shoulder), then breaks through the first resistance level and hits a higher resistance level (forming the head) and then hits the first resistance level again (forming the second shoulder). Head-and-shoulders bottoms are reversal patterns that form as the price hits a support level (forming the first shoulder), then breaks through the first support level and hits a lower support level (forming the head) and then hits the first support level again (forming the second shoulder). HEAD AND SHOULDERS TOPS / BOTTOMS Head-and-shoulders tops are bearish reversal patterns and headand-shoulders bottoms are bullish reversal patterns. If a currency pair is in an up trend, it will form a head-and-shoulders top. If a currency pair is in a down trend, it will form a head-andshoulders bottom. Head-and-shoulders tops/bottoms usually form over long periods of time. CHARACTERISTIC OF HEAD AND SHOULDERS TOPS / BOTTOMS Left shoulder (A) horizontal, or slightly angled, level of resistance (headand-shoulders top), or a horizontal, or slightly angled, level of support (head-and-shoulders bottom). Head (B) higher horizontal, or slightly angled, level of resistance (head-and-shoulders top), or a lower horizontal, or slightly angled, level of support (head-and-shoulders bottom). CHARACTERISTIC OF HEAD AND SHOULDERS TOPS / BOTTOMS Right shoulder (C) horizontal, or slightly angled, level of resistance that is in line with the left shoulder (head-and-shoulders top), or a horizontal, or slightly angled, level of support that is in line with the left shoulder (head-and-shoulders bottom). Neckline (D) horizontal, or slightly angled, level of support (head-andshoulders top), or a horizontal, or slightly angled, level of resistance (head-and-shoulders bottom). CHARACTERISTIC OF HEAD AND SHOULDERS TOPS / BOTTOMS Breakout point (E) the point at which the price breaks up above the neckline (head-and-shoulders bottom), or the point at which the price breaks down below the neckline (head-andshoulders top). Price projection (F) the price to which the stock will most likely fall after it has broken out of the head-and-shoulders top formation, or the price to which the stock will most likely rise after it has broken out of the head-and-shoulders bottom formation. The distance the price is projected to move is equal to the distance between the head and the neckline. CHARACTERISTIC OF HEAD AND SHOULDERS TOPS / BOTTOMS tak X a se lepa ↓ HEAD AND SHOULDERS TOPS / BOTTOMS HEAD AND SHOULDERS TOPS / BOTTOMS HEAD AND SHOULDERS TOPS / BOTTOMS straight -nak boa pie HEAD AND SHOULDERS TOPS / BOTTOMS HEAD AND SHOULDERS TOPS / BOTTOMS HEAD AND SHOULDERS TOPS / BOTTOMS PRICE PATTERN COMPLETION PRICE PATTERN COMPLETION Volume is more important on the upside. Volume should generally increase in the direction of the market trend and is an important confirming factor in the completion of all price patterns. The completion of each pattern should be accompanied by a noticeable increase in volume. breakout > - > - volume volume besue pun besue besar kena = not strong - don't = buy. good ! All into pattern 9 : / pattern -continuation one