Profiting with Chart Patterns book
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- Bu səhifədəki naviqasiya:
- Saucer Patterns
- Figure 3-12.
- Saucer Pattern Structures
- Figure 3-13.
| Figure 3-11.
Trend Line Break Pattern Shown on the Chart for 3M In this example we had four touches that formed that line. Again, you are looking for patterns that are obvious. If a market is looking at this chart it sees the gradual decline in price on the left and a sudden move up through that trend line at about $144. Then it breaks resistance that was formed at $150, which was formed in early October. At either of those points the market gets bullish on the stock. In this example, we are taken out of the trade by the small bar in early December that closed above $154. We only got about 7% on it and this is going to happen sometimes. Chapter 3 Definitions, Structures, & Examples © Nirvana Systems Inc. 3-13 Profiting with Chart Patterns Saucer Patterns Our third pattern is Saucers. Saucers are very tradeable patterns and have strong psychology. The idea is that you have a smooth transition in price from a downward trend to an upward trend. People looking at the chart can see that curvature. This pattern takes advantage of human nature—when we see something curving up, that is good. You want to get on the bandwagon and trade the move because it is probably going to keep curving up. The smooth transition reinforces the buy decision. More buyers jump on and there you go—it reinforces itself and accelerates. Figure 3-12. Saucer Pattern Chapter 3 Definitions, Structures, & Examples Profiting with Chart Patterns 3-14 nirvanasystems.com Saucer Pattern Structures Here is the structure for a saucer. It is a little different from the prior structures. It actually has some dimensionality to it. We have several patterns like this that we are going to cover in subsequent sections. In this example look at the center of your saucer and go back to the relative high which formed ahead of the saucer. The target will be at a distance of about 6/10 of that to the right and about half way up. So, draw your Eights scale from the previous high to the low and go to the 50% level. Project this level right of center and this is about where the chart should move. This also gives you a great Reward:Risk calculation. Figure 3-13. Saucer Structure Diagram If we break through the lows formed by the saucer, that is an equally tradeable pattern. This is a very rare occurrence but does happen sometimes if bad news enters the market. If that occurs the stock is going down. Chapter 3 Definitions, Structures, & Examples © Nirvana Systems Inc. 3-15 Profiting with Chart Patterns Yüklə 2,26 Mb. Dostları ilə paylaş:
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