Chapter 3 Definitions, Structures, & Examples
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Nirvana Systems Inc.
3-29
Profiting with Chart Patterns
Volume Trend: Proctor & Gamble
This chart of Proctor & Gamble (PG) is a good example of a Volume Trend pattern
confirmed by a Breakaway Gap to the downside through $78 in August. As the price
shot down on heavy volume of selling,
the volume started to decrease, but price
continued to go down with the decrease.
Figure 3-29.
Volume Trend Shown on the Chart for Proctor & Gamble.
Chapter
3 Definitions,
Structures,
&
Examples
Profiting with Chart Patterns
3-30
nirvanasystems.com
Consolidations
The last pattern is my favorite and it is the most powerful pattern. Essentially, a
Consolidation is a trading range. In a chart, it is
a zone between Support and
Resistance. It can be sloped Support and Resistance. But, in all cases, you have price
moving back and forth between those two support and resistance lines until finally,
one of the lines is broken decisively. Consolidations can be symmetrical triangles,
pennant patterns, flag patterns, rectangles. Any tight trading range is a Consolidation.
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