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    Patterns

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    collegetradingexchange
    The document discusses shorting stocks, trends, patterns, volume, consolidation, support, resistance and various chart patterns. It provides an agenda for a meeting covering shorting, patterns, trends and volume and examples of chart patterns like head and shoulders, triangles, flags and wedges.

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    Patterns

    Uploaded by

    collegetradingexchange
    162 views36 pages
    The document discusses shorting stocks, trends, patterns, volume, consolidation, support, resistance and various chart patterns. It provides an agenda for a meeting covering shorting, patterns, trends and volume and examples of chart patterns like head and shoulders, triangles, flags and wedges.

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    The document discusses shorting stocks, trends, patterns, volume, consolidation, support, resistance and various chart patterns. It provides an agenda for a meeting covering shorting, patterns, trends and volume and examples of chart patterns like head and shoulders, triangles, flags and wedges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    162 views36 pages

    Patterns

    Uploaded by

    collegetradingexchange
    The document discusses shorting stocks, trends, patterns, volume, consolidation, support, resistance and various chart patterns. It provides an agenda for a meeting covering shorting, patterns, trends and volume and examples of chart patterns like head and shoulders, triangles, flags and wedges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 36

    Smeal Technical Analysts

    All through time, people have basically acted the


    same way in the market as a result of greed, fear,
    ignorance and hope - that is why the numerical
    formations and patterns recur on a constant basis.

    -Jesse Livermore
    Second Meeting Agenda

    • Shorting

    • Patterns, Trends and Volume


    Shorting
    • Making money when a stock or market falls
    • Selling high and buying back the stock at a
    cheaper price, in the case of the stock market
    • For futures it is literally going short
    – Zero-Sum game – a market term that means there is
    no value gained in the market, for every dollar that
    you make, someone lost…but for every dollar that
    someone lost you can make
    Why should anyone go short
    • Some people say…
    – The market takes the stairs up and the
    elevator down
    • Think about that statement
    LDK
    YHOO
    MER
    Trends
    Reversals
    Volume
    • Number of shares traded in a given period
    of time
    • Used to measure the worth of a market
    move
    • If prices make a strong move in either
    direction, the perceived strength of that
    move depends on the volume
    • Higher volume indicates greater
    significance
    Consolidation
    Consolidation
    • Usually occurs after price movement
    • Period of indecision
    • Trades within a tight price range
    • Volume should decrease within the
    consolidation period
    • The stronger the consolidation, the
    stronger the potential move
    Support
    • A price level, trend line, moving average
    etc
    • A price level that the stock has historically
    been unable to break below
    • A level where a lot of buyers tend to enter

    • Reconfirmed or broken
    Support
    Resistance
    • Opposite of support
    Patterns
    • Pullbacks
    • Triangles
    • High/Low Base
    • Flags
    • Head & Shoulders
    • Double Tops / Double Bottoms
    • Wedges
    Pullback

    Pullbacks occur in trend channels. Buy at channel support sell at channel resistance.
    Ascending Triangle
    Descending Triangle
    Symmetrical Triangle
    Pennant
    High Base
    Low Base
    Bull Flag
    Bear Flag
    Head & Shoulders
    Inverse Head & Shoulder
    Double Top
    Double Bottom
    Multiple Top / Multiple Bottom
    Falling Wedge
    Rising Wedge
    Closing

    • Learn to recognize these patterns.


    Practice makes perfect, a trained chartist
    can recognize patterns in a chart in under
    3 seconds

    • Next meeting we will review trends &


    patterns and start talking about Indicators

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