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Price Pattern Name Applies to Intermediate-term Trend Up/Down (Not Sideways) Decreased Volume at Pattern– Increased Volume
Price Pattern
Name
Applies to Intermediate-term Trend Up/Down (Not Sideways)
Decreased Volume at Pattern– Increased Volume at Breakout
Flags & Wedge: Short-term Continuation
Patterns w/in Intermediate-term Trend
Bull Flag
Short-term Pause on Uptrend – HH-HL
Entry – bounce off support and break thru resistance
moving up
Target – Fibonacci extensions or flag pole length to
measure price target
Typically formed over 3-5 day pullback
Most prominent short-term pattern
Bear Flag
Short-term Pause on Downtrend – LH-LL
Entry – bounce off resistance and break thru support
moving down
Target – Fibonacci extensions or flag pole length
Typically formed over a few days or weeks
Pennant
When stock channels slope toward one
another and converge
Typically formed over 4 weeks or more
Wedge
Short-term Pause on Up/Down Trend – strong short-
term movement
Entry – breakout in direction of previous trend
Target – Fibonacci extensions or flag pole length
Short-term Pause on Up/Down Trend – highs and lows
counter to intermediate trend; support and resistance
converging; consolidation of trend
Entry – break out in direction of previous trend
Target – widest point of the pattern
Rising wedge on downtrend (bearish)
Falling wedge on uptrend (bullish)
Like a big bear or bull flag
Ascending
Typically formed over 4 weeks or more
Triangle
Price must bounce twice off both support
and resistance to be valid.
Descending
The pattern is usually complete when the
price is about ¾ of the way to the apex of
the triangle.
Triangle
Intermediate-term Uptrend Pause – consolidation
through horizontal resistance and rising support
Entry – break above resistance; 70% successful
breakouts come back to breakout point forming a bull
flag; 30% keep going up
Target – widest point of triangle
Intermediate-term Uptrend Pause – consolidation
through falling resistance and horizontal support
Entry – break below support
Target – widest point of triangle
Typically formed over 4 weeks or more
Symmetrical
Triangle
Intermediate-term Pause on Up/Down Trend –
consolidation through converging support and
resistance (like pendant only longer timeframe)
Entry – break out in direction of previous trend
Target – widest point of triangle
Can appear in an up or down trend
Higher lows show strength (bullish)
Lower highs show weakness (bearish)
Price Pattern Name Decreased Volume at Pattern– Increased Volume at Breakout Closing Price should be 1-3%
Price Pattern
Name
Decreased Volume at Pattern– Increased Volume at Breakout
Closing Price should be 1-3% past the level
Short-term Pattern – similar highs and lows with two or
Short-term Continuation Patterns w/in
Intermediate-term Trend
Typically formed several weeks to months
Rectangles
more touches on each; the longer it lasts, the more
chance it’ll reverse the original trend
A consolidation of intermediate-term trend
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Double Top – two touches at resistance
Double Bottom – two touches at support
Triple Top – three touches at resistance
The parallel support and resistance levels
can be horizontal or have a slight slope
Entry – break out in either direction
Target – widest point of the rectangle
Head and
Shoulders
Short-term Pattern – similar lows with highs in steps
Entry – break out of support
Target – widest point from highest high to support
Typically formed several weeks to months
A consolidation of intermediate-term trend
Inverse Head
and
Shoulders
Short-term Pattern – similar highs with lows in steps
Entry – break out of resistance
Target – widest point from lowest low to resistance
The parallel support and resistance levels
can be horizontal or have a slight slope

Managing Watch Lists

Identify trend

Identify support and resistance

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Draw trendlines

Draw any current price patterns

Draw Fibonacci lines

Make text notes

Monitory daily

Buy Custom with OCO Bracket.

Sell conditional target and stop price.

Price Pattern Name Decreased Volume at Pattern– Increased Volume at Breakout Closing Price should be 1-3%

Created by Rose Dorsey

6/30/11