Profiting with Chart Patterns book

Volume Climax: Facebook.
The next Volume Climax pattern occurred on Facebook (FB). This one came on a big 
down in the market that only lasted one or two bars. But, we did have a reversal in the 
chart to the upside with a decrease in volume, which was a good indication that the 
chart was going up. 
Figure 3-28.
Volume Climax Shown on the Chart for Facebook
Now, more significantly on this chart, we were actually going through resistance 
levels at about $97, which was even better confirmation that this chart was going to 
rally from that point.

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Chapter 3 Definitions, Structures, & Examples
©
 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.

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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.