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
Anchor Strike (Top-bottom)
by PRASHANT SHAH -
Anchor Tops and Anchor Bottoms This is a method that helps us in identifying if significant Top or Bottom has been formed. Have a look at 1% box-value chart of Bharat Forge, shown in below. There is a corrective move when the overall trend is up. Stock price corrected for about 18 months and price ... Read more
Setback-Comeback
by PRASHANT SHAH -
I am seriously impressed by recent advertisement of Kaun Banega Crorepati program. It says, “Setback ka jawab Comeback se do”. Please have a look if you haven’t seen it as yet. Beautiful lines, full marks to writers and makers of the show for this.We can see those patterns in stocks also. Below are some examples of stocks where there was a ... Read more
OOPs Patterns
by PRASHANT SHAH -
OOPs Support–Resistance Pattern Given below is an image that shows the price at the previous important base: Image 7.34: Support at the previous base.[WJ1] This pattern can also be defined in the P&F pattern. Look at the image below. Image 7.35: Bottom of ‘O’ at the same level. When two columns of ‘O’ are at ... Read more
