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
Five-box Traps
by PRASHANT SHAH -
We discussed Trap formation in the section on major patterns. If weak breakout turns out to be a trap, it becomes a five-box trap. Image 2.7.10 explains it. It is a five-box Trap because the number of boxes in the column preceding the breakout is less than 5. If weak breakout is of just one ... Read more
Ziddi Bulls and Ziddi Bears
by PRASHANT SHAH -
Ziddi in Hindi means stubborn. Below Image explains why this formation is given this name. Consecutive weak breakouts followed by trap are called Ziddi formations. Ziddi bulls is a formation showing bulls that did not let price travel even by three boxes twice after breaking down and then formed the Bear Trap. It shows the ... Read more
Oops Pattern
by PRASHANT SHAH -
Oops Pattern Oops pattern is a combination of support and resistance patterns. See below image. ‘O’ at same level indicates support. But it is possible that price will continue to fall further and trigger a bearish breakout pattern. If column reverses to ‘X’ from these levels, then we know that the support is level is ... Read more
