What is major pattern?
by PRASHANT SHAH -
Differentiation between Fresh and Continuation signals is important irrespective of trading methodology. We discussed a basic P&F pattern trading method in the previous chapter. Like any other price-following method, period of Sideways or horizontal trend generate whipsaws with this method as well, but it is comparatively less, for reasons we discussed in the earlier chapter. ... Read more
Triple Top – Triple Bottom Pattern
by PRASHANT SHAH -
If high box-price of two consecutive columns of ‘X’ happens to be at the same level from which column has turned to ‘O’, then it becomes a strong resistance area. It displays strong supply area because three-box reversal has been produced from the same level twice. Similarly, if low box-price of two consecutive columns of ... Read more
Trap Pattern
by PRASHANT SHAH -
Trap Trap should be a familiar word to market participants. We fall prey to it often. Getting trapped can be simply defined as getting stuck in a trade that has moved against the entry. Double Top Buy is a bullish swing breakout formation. A column of ‘O’ may occur after such breakout which represents correction, ... Read more
Pole Patterns
by PRASHANT SHAH -
Pole formation is truly a gift from Point & Figure to the world of technical analysis. It is a matchless and useful pattern even from the perspective of designing systems. Pole doesn’t get generated upon Double Top Buy or Double Bottom Sell signal; hence, it is a reversal formation and not a breakout or continuation. ... Read more
Triangle Patterns
by PRASHANT SHAH -
The Triangle is another unique feature of P&F charts. No other method can display converging formation in such an impressive manner. I need to explain Inside Column before discussing triangles. Inside Column As the name suggests, Inside Column is a column that is confined within the previous column; meaning that the high of the inside ... Read more
Exercise and Summary
by PRASHANT SHAH -
Charts were given for exercise after every discussion in the previous section. All those charts are shown below with all four major patterns marked on them. Triple top-bottom section chart Trap Pattern section chart Pole Section pattern chart Triangle Pattern section chart The rest will be a cakewalk if you have been able to spot ... Read more
