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
Strike-back Pattern
by PRASHANT SHAH -
Strike-back Pattern See below image. Price went below its previous swing low. It is a bearish breakout. Price going below previous low is a double bottom sell pattern in P&F charts. Pattern is bearish. People who were looking at previous low as support are in trouble. Their stops have got hit; bears are dominating. Imagine, ... Read more
Diamond Pattern
by PRASHANT SHAH -
P&F Diamond Diamond is a popular chart pattern which is considered as a strong formation that usually occurs when price is forming a significant top or bottom. Below Image shows a diamond pattern. The same can be designed on Point & Figure as well. If you look at it carefully, it can be described as ... Read more
Super Pattern
by PRASHANT SHAH -
I couldn’t find a better name for this pattern. While the rules of the pattern are very simple, it turns out to be one of the profitable and reliable patterns in my several years of trading P&F charts. The most advantageous thing about P&F is that we can segment price into boxes. Buy after small ... Read more
