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
Broadening Patterns
by PRASHANT SHAH -
This section deals with patterns which are derivatives or extensions of major patterns. But they have greater significance due to additional information that they provide. Having understood the major patterns will help you grasp them easily. Let us discuss them. Broadening Formation Trap formation was discussed in the previous section. Recollect and revise them before ... Read more
100% Pole
by PRASHANT SHAH -
We discussed pole formation in the previous chapter. A pole is formed when a column is retraced by 50% immediately after the long breakout column – you can call it 50% Pole. It is possible that after forming 50% Pole, the trend continues in the same column and retraces the prior swing by 100% or ... Read more
Pattern that Reversed
by PRASHANT SHAH -
Bearish and bullish patterns that reversed are reversal formations and not really an extension to any pattern that we have discussed so far. I wish their names were different to make them less confusing and easy to remember. Nonetheless, they are useful and important formations that can easily be understood. Bearish pattern that reversed is ... Read more
