Pattern Retest
by PRASHANT SHAH -
Price retesting of previous pivotal levels are traditionally considered as important supports and resistances and proves very effective most of the time; but trading them is quite tricky and needs confirmatory tools. Below is a quick look at the formations seen on usual charts when price retests the previous peaks or troughs. 1) Double Bottom ... Read more
Trading Column Reversal
by PRASHANT SHAH -
Although column reversal is the most basic formation of a P&F chart, using it from the trading perspective needs understanding of major P&F formations and a little practice. It can provide very affordable trading opportunity but one must know which setup should be traded. We discussed the affordability aspect while discussing the basic patterns. There ... Read more
Follow-through
by PRASHANT SHAH -
Follow-through is an important concept and I cannot stress enough about its significance. If there is strength in the move, it shall witness a follow-through. We discussed the Catapult formation which is basically a follow-through to Triple Top or Triple Bottom pattern, Double Top Buy pattern is otherwise also a bullish signal but its appearance ... Read more
ARF Pattern
by PRASHANT SHAH -
Have a look at below chart pattern:A = Strong trendB = Shallow retracementC = Continuation breakoutBelow is a chart image showing this pattern:We have talked about Super pattern, T20 etc patterns which was an attempt to make this observation objective and scannable.For example, a strong trend followed by less than 4-box retracement is a Super pattern that provides affordable trade opportunity.But ... Read more
ABC Pattern
by PRASHANT SHAH -
ABC “Know the rules well, so you can break them effectively” – Dalai Lama XIV Once the basic concepts are mastered, it becomes far easier to tweak them to suit personal requirements. Trend lines, counts and P&F patterns can be utilized to design various trading setups. Here is an example of one such setup defined ... Read more
P&F Tweezers
by PRASHANT SHAH -
I have borrowed the word Tweezer from Steve Nisson’s popular and wonderful book Japanese Candlestick Charting Techniques. He has described the Tweezer Candlestick pattern in his book. Though there is no similarity in the two patterns, I recalled that pattern while working on Tweezers, hence the name. Though they look simple, P&F Tweezers are an ... Read more
