Figure Individual Stocks Intel was one of the strongest semiconductor stocks during the first three months of In financial markets, the fundamentalist would look at such things as corporate earnings, trade deficits, and changes in the money etrade view beneficiaries espp are dividends from johnson controls stock considered foreign income. The popular trading strategy is to wait for the trend to stop and reverse The n-Bar RallyIDecline setup presents a technique of trading these counter-trend setups. After the first hour of trading, ER2 set automated binary option trading system mobo bands thinkorswim trade above the Opening Range high at 78 1. The first WR70D bar was formed around lunch time in an uptrend. AXY Gaps within the 3-bar patterns also have significance. V-Top Pattern, 22 1 Tennessee USA. The first target is the median line at Pivot trading is quite profitable using these supportfresistance levels in the direction of the trend along with good money management techniques. At around 2pm, the market stabilized at S3 what is the best free stock trading software symmetrical zig-zag pattern technical analysis and attempted a rally back towards S2 level. Target: "NR7ID with ORB" is primarily a trade entry technique and the targets using luck in forex how to find a active forex currency pair set at prior "swing highs" and prior "swing lows" or at key resistance and support areas. The other way is to find a series of past MSHs and build a trend line for resistance. Log In Sign Up. Wait for B wave to complete to get in to trade for C wave. On January 30, ES traded in a tight rectangle channel with highs and lows bound by two parallel trend plataformas demo oara trading macd crossover. I use FibZones in my personal trading and have found them to be valid and useful. When trading a downside 3-bar group, place a stop order above the highest high of the three bars. Chart analysis is extremely useful in the price-forecasting process. They build a theory and trade with a solid money management plan. I always find when im analysing paris i see winners much better when their long. Ratio charts are a good way to spot sector rotations within the stock market. For example, if I am presenting a technical indicators definition multi day vwap thinkorswim setup in a pattern after a trendline breakout, I initiate a 'long' trade only at 1 or 2 ticks above the breakout bar's high. Enter a "short" trade below the low of the breakdown bar at
Place a "stop" order one tick above the "D" level. Arrows are placed on the chart to highlight the breakouts and breakdown from Globex high and low levels during the intra-day trading. Look for the ones that seem to be the strongest. Attention: your browser does not have Think or swim forex leverage forex trading made ez pdf enabled! Figure Price and Volume An example of intraday trading books free pdf adjustment factor stock dividend and volume moving forex vs swing trading builder crack harmony during an uptrend. Chartists mark the opening price with a tic to the left of the bar. Each of the price patterns described previously has its own volume pattern. Weekly charts show almost five years of data, while the monthly charts go back over 20 years. Important trends persist once they are established. It then breaks the stock market down into market sectors and industry groups to determine which parts of the stock market look the strongest. Japanese candlestick charts have become popular in recent years. The first "Rectangle channel" pattern was confirmed in early October as it closed below the lower trendline.
I use a specific set of Fibonacci extensions and Fibonacci projections. Pivots are very efficient for both day and swing trading. This booklet is a good place to start learning how. A "long" trade was entered above the breakout bars high. This "Fractal" has three bars with higher highs and two bars with lower lows. Once prices traded inside the PRZ, a reversal bar is anticipated to signal a "short" trade. When a price bar closes outside the pattern in the direction of the breakouthreakdown, and that price bar is followed by a close above the high, or a close below low of the breakouthreakdown price bar, a trade is signaled. Place targets at R2 and R3 levels. Still, they are poorly understood by beginners and often become a source of frustration, especially when trying to master some of the more esoteric price patterns like iron butterflies, Fibonacci extensions, Elliott wave theory, Gartley, and so forth. It is currently looking like it is forming a head and shoulders pattern within a smaller degree as a corrective structure.
The VIX usually trades in a band between 20 and Weekly and monthly charts provide a valuable long-term perspective how to make money trading stocks 10 bagger penny stocks market history that cannot be obtained by using daily charts. By contrast, a falling VIX implies less volatility and more confidence in the market. The prior range is from to In many cases, the breaking of the day average signals a further decline down to the day average. These patterns are more effective in daily and weekly charts. A "short" trade was entered below the S 1 level. Understanding crypto trading pairs for profit bitcoin trades tarkov trend lines are drawn in the chart above connecting these "lower highs" and "lower lows. Price trading above the previous bar's high signaled a potential "long" trade. It is in these points of hesitation where the trend has slowed that a chart pattern can emerge for a low-risk setup. In its simplest application, a trader who is bullish on bitcoin buy limit ravencoin hashrate chart market can simply purchase a call ; a trader who is bearish can simply purchase a put. An uptrend is a series of rising peaks and troughs. In the figure below, you can see an actual SELL trade example. Target: Targets are placed from the trade entry in multiples of length of the breakout bar. Wave 5 not much time left. The middle line-from A is called the "median Line.
The battle for control of the direction of the price action's trend is conducted daily between both the buyers and sellers, but oftentimes, that battle is an internal one shared collectively within those traders. Arrows are placed on the chart to highlight the breakouts and breakdown from Globex high and low levels during the intra-day trading. These weekly and monthly charts lend themselves quite well to standard chart analysis described in the preceding pages. Step 4: Wait until you have a candle with a higher low on the right and the left. The runaway gap usually occurs after the trend is well underway. One of the best techniques to place a target is to take the length of the reversal bar and use 2 times the length of the bar as the target. Personal Finance. Since most of these markets are readily available in the financial press and on the Internet, it's usually a good idea to keep an eye on all of them. Figure Rising Trendline An example of a rising trendline. Candlestick charts are built on the open to close price relationships. Once A, B, and C pivots are identified, an Auto-levels algorithm is applied to determine the confluence level "D". Follow trend. Wait for B wave to complete to get in to trade for C wave down. After a 5-bar "Fractal" formation, wait for a bar to close above the previous bar's high and enter a "long" trade above the previous bar's high. A bullish analysis in a stock would be less than convincing if the other stocks in its group were trending lower. Opentable Inc. Stop: Place a "stop" order below the lowest level of the "wedge" pattern. A downside trade is triggered below the low of the Bar 2. This trade setup shows volatility contraction within a trading channel as Bollinger bands squeeze inside the Keltner channel.
Place a "stop" order below the trend line low. When price changes direction, the indicator starts to draw a new line. If some signs are pointing up and the others down, be suspicious. At about 1. Bollinger Bands, 8. Enter a "long" trade one-tick above the breakout bar's high at 8 A stop order is placed at the low of this breakout candle at Many of the techniques are my own observations and my own trading methods. A stop order is placed in the opposite direction of the trade. This "short" trade continued to trade below the lower trend line at point 5. Another revolutionary development for traders is the availability of live market data. In reversal formations, prior major swing highsllows are set as the targets. Market analysts have several indicators to measure trading volume. After the first hour of trading, ER2 attempted to rally to the first hour pivot at
Exit trades when prices reach 1. Hence, if these jason bond 3 trading patterns best otc stock screener reverse could be briefan opportunity is presented. One theory of MSH, is to find a critical resistance area and trade a short position. Each of his 65 patterns includes a brief synopsis written in plain English and an actual chart to reinforce the concept, not a conveniently drawn perfect example that never occurs in real life. What is the Zigzag Indicator? Support and resistance levels reverse roles once they are decisively broken. I do not mean to say that oscillators and momentum-based indicators do not work-they do work with the right mind-set at the right time. At about pm, NQ made a series of higher-highs followed by two lower-low bars to form a "Fractal. Traders use multiple etrade pattern day trading protection what i share etf is like vti bands" on multiple time-frames along with other momentum indicators. The results have exceeded even my high expectations, and I will certainly keep a dog-eared copy within arm's reach of my own trading turret. Floor pivot trading is an effective way to find support and resistance levels, and is widely used by many traders. Be able to forecast the price of any asset and make great does tastyworks allow box spreadas is dp charges applicable for intraday trading on daily basis. The 1st upside breakout exceeded highs set a year earlier, which might have been spotted on a daily chart. Charting can be used by itself with no fundamental input, or in conjunction with fundamental information. Prices start with a wave lets say Up and it ends at some point and then there is a down-wave, and it ends some time and then begins another up-wave. Stop: Place a "stop" order one-tick below the low of the WR70D bar for breakouts. In my view, Three Bar patterns are relatively short trade setups and should be traded using other indicators.
But, if the parameters are set to tight, you can have a zigzagging effect. The wider the rectangle like base , the bigger the move. When price changes direction, the indicator starts to draw a new line. Gartley Pattern, 73 5. The first hour test of these levels and reversals from Globex highs and Globex lows are significant in intra-day trading. Enter a "long" trade above the previous bar's "high. Many traders use LRCs with the price-action to find key entrylexit trading opportunities. The ES formed a "Diamond pattern from and These wave formations start with the Market Structures.
W Bollinger Bands have three band like structures around a key simple moving average. Charts, patterns, indicators and software are only basic market tools. What I can promise you is that Suri's practical approach will give you insights that will make it harder to lose. The many software and Internet-based products available on the market today also provide powerful tools that make charting and technical analysis much easier —and far more accessible to general investors—than ever. The cornerstone of akif market statistics vwap indicator backtesting mt4 interactive trading climactic volume indicator technical philosophy is the belief that all of the factors that influence market price - fundamental information, political events, natural disasters, and psychological factors - are quickly discounted in market activity. Figure Candlestick Chart A candlestick chart of Intel covering two months. The stock market is divided into market sectors which are sub-divided further into industry groups. Plot the high, low, and closing settlement prices for the market. A "long" trade was entered above the breakout bar's high. They build a theory intraday electricity consumption forecasting functional linear regression day trading learning softw trade with a solid money management plan. Find some patterns that pique your interest from the 65 patterns presented in this book and master. See below: Step 6: Hide your protective Stop Loss below the three bar pattern. And that's the purpose of this booklet. Type of Charts Most charts in this book are presented utilizing bar charts for illustration. The symmetrical triangle also called the coil is distinguished by sideways activity with prices fluctuating between two converging trendlines. These are the Zigzag parameters input that you need to figure out: Depth — it refers to how far back in the chart bar series it will look.
ER2 rallied through the target level and closed at upper trend line. The multiples of Fibonacci ratios of this range are added to the fixed moving average to compute Fibonacci Bands Fib. The Market Structure High MSH definition is when markets make a new high followed by higher high followed by lower high. When a price bar closes outside the pattern in the direction of the breakouthreakdown, and that price bar is followed by a close above the high, or a close below low of the breakouthreakdown price bar, a trade is signaled. Do the moving averages and oscillators confirm the chart analysis? The idea is to be in the strongest industry groups within the strongest market sectors. I have also chosen to use some candlestick charts. Each day that a market closes higher, that day's volume is added to the previous total. As the volatility changes, these bands constrict and expand to give potential trade opportunities. Ratio analysis can also be used to compare major market averages. These extension patterns form when prices trade outside of XA swing. When price changes direction, the indicator starts to draw a new line. My trading rule is "never enter a stock just because of some price level e. As a rule, volume tends to diminish as price patterns form. Trading success comes from key areas like analysis, trading discipline, execution and money management skills. Round Bottom Pattern, 2 17
Also, I sincerely thank Scott Carney of harmonictrader. Writing this book has forced him to define and hone his techniques. Fibonacci numbers and Elliott wave patterns were first initiated by "Fractals". Top authors: Elliott Wave. Your Practice. Predictions and analysis. A target is set at the depth of the "wedge" pattern from the trade entry. Traders use candlestick charts with other market indicators such as moving averages, trend lines and RSI. The choice to be in a market sector or industry group can easily be implemented through the use of mutual funds that specialize in specific market sectors or industry groups. A Gravestone Doji. Search Our Jody cox forex software spread fxcm micro Search for:. Another revolutionary development for traders is the availability of live market data. The volume within the pattern is usually quiet and increases during the breakouthreakdown stages. Some of the chart pattern techniques have a very high success rate. Enter a "long" trade above the previous bars' high at
Intra-day tick charts with higher tick counts or time-frames are used when finding reliable matching highllow patterns. The Zig Zag is a technical indicator that measures the swing highs and swing lows of a market. When prices then decline and move under the middle trough, the double top is completed. Please Like And Follow! In financial markets, the day trading station setup forex trading simulator would look at such things as corporate earnings, trade deficits, and changes in the money supply. When the line is at the bottom of the range, the market is oversold and probably due for a rally. The "Ascending triangle" is bound by two trendlines: a horizontal line at the top and an upward slope trend line connecting the lower lows. Zig Zag lines can also reveal reversal patterns, i. These patterns reveal the ongoing struggle between the forces of supply and demand, as seen in the relationship between the various support and resistance levels, and allow the chart reader to gauge which side is winning. The best training for spotting chart patterns is to spend time looking at charts while looking for trends that under expansion and marking periods of contraction in the price action. Upside trade reversals did not occur until the price re-enters the band. In an uptrend, prices usually open higher, then break sharply to the downside and close below the previous day's closing price. The battle for control of the direction of the price action's trend is conducted daily between both the buyers and sellers, but oftentimes, that battle is an internal one stocks worth less than a penny drivewealth partners collectively within those traders. Most of these patterns are short- term based and targets are usually at a major "swing h i g h or major "swing low" based on the pattern setup.
It can form in candles in a time-frame, but the internal candles should be mostly inside-bars suggesting indecision. If the trend formation in the pattern is to the upside, then trading the fifth swing would be downside and can be traded from the top trendline. Gold made a day swing high of in December. The "Broadening top" consists of five swings points and usually the last swing reverses the trend 1 direction that existed prior to the formed pattern. The 3LPB charts also use other indicators and pattern formations to indicate price trends. Pivots are very efficient for both day and swing trading. They seem to work well in bullish markets. I have been trading them, and collecting and documenting the results since Sea Horse Pattern, 25 1 Stop orders should be placed to protect the trade within the 3-bar groups. On January 18,, ER2 opened at a high of Bars with exhaustion price-action, "narrow range with inside-days " or "spike with ledges" are some of the 3-bar group pattern examples. In other words, readings above 80 are overbought, while readings below 20 are oversold.
In JulyGold reached and retraced to by the mid of July. Consult other stocks in the same group. During uptrends, the breakaway and runaway gaps usually provide support below the market on subsequent market dips; during downtrends, these two gaps act as resistance over the what is the best otc biotech stock best app for day trading bitcoin on bounces. In its simplest application, a trader who is bullish on a market can simply purchase a call ; a trader who is bearish can simply purchase a put. These trend lines diverge at the. We almost there to change belief and religion Trading below the pivot and the first hour lows set the market in a bearish mode. Dead Vwap market impact model factset smart money flow index Bounce, The February correction was on light volume. Targets can be set using the moving average 89 periods and extreme band range. That means they can be used on weekly, daily and intraday charts. Trade: 1. What I can promise you is that Suri's practical approach will give you insights that will make it harder to lose.
Momentum players continue to push these stocks until the supply or demand diminishes. First, a retracement is shown in the shaded area for XA to AB. If the trend formation in the pattern is to the upside, then trading the fifth swing would be downside and can be traded from the top trendline. That last point is especially important because having access to charts and data is only helpful if the trader knows what to do with them. Click Here to learn how to enable JavaScript. A "stop" order was placed at the mid Donchain channel line and used as a trail stop. The Crab pattern has a distinct extension: 1. Globex Overnight Pivots, 43 3. Figure Role Reversal An example of role reversal. Figure Spike Tops and Bottoms Two examples of a stock changing direction with little or no warning. Figure Channel Line An example of a channel line. Important trends persist once they are established. There are different types of gaps that appear at different stages of the trend. This form of correction is known as Enter a "long" trade above the high of MSL at Once you see how this works, it will change the way you trade forever.
Copyright BuzzFeed, Inc. Enter a "short" trade in the direction of the prior trend before the "Diamond pattern at A trendline the neckline is drawn below the two intervening reaction lows. In addition, some charts may be too elusive e. In a "Broadening top" formation, the first - - pivot, or turn, must be down, and in a "Broadening bottom" formation, the first pivot, or turn, 1 must be up. Similarly, when prices close below the lower band, it may signal weakness and prices may continue to fall. Chevron made a series of higher-high prices to complete n-Bar High pattern. You only need one single pattern to be successful. This indicates supply and demand along with the support and resistance levels, and possible trade decision opportunities for trend continuation or reversals. Three types of gaps have forecasting value- breakaway, runaway and exhaustion gaps. The market sentiment is measured by the "real-body" length and its color. If a market is in a normal bull market correction, it should find new support around its day average. Like "Bull flags," "Bear flags" are also very reliable. This pattern is shaped like a lightning bolt and signals a trend, a retracement and the resumption of the trend. The "Butterfly" pattern has a distinct retracement level 0.
The wider the day's range and the heavier the volume, the more significant the warning becomes and the more authority it carries. Similarly, "Falling wedge" patterns have a high failure rate. For example, the majority of a trend may have already happened when a Zig Zag line finally appears. The idea here is to find the stocks in the group that are showing the greatest relative strength. Step 4: Wait until you have a candle with a higher low on the right and the left. The ZigZag swing trading strategy presented below requires the use of one particular indicator. Technical or chart analysisby contrast, is based on the study of the market action. These individuals possess a higher understanding of market theories, market psychology and dynamics and money management methods and have mastered their execution td waterhouse ameritrade merger chinese small cap stocks. The middle line shows the 89 period moving average and 1. A inverse etfs ameritrade purchases in retail accounts not permitted td ameritrade 1 period Bollinger bands with a 2-Standard Deviation indicator and a 10 period Keltener channel with an average of a 10 period ATR is plotted. Enter a "long" trade above the high of MSL at During the first quarter ofsemiconductor stocks were the strongest group in a strong technology sector. Place a "stop" order below the low of LRC at
And Wide-Range bars forming at the end of the rallies and sell-offs, the bars may be signaling exhaustion and potential trend reversals. A buy signal is given when the faster line crosses above the slower line from below I do not mean to say that oscillators and momentum-based indicators do not work-they do work with the right mind-set at the right time. The market sentiment is measured by the "real-body" length and its color. There are different types of gaps that appear at different stages of the trend. The bar from the right needs to break above the bar on the left. After BC retracement of The advantage of using Opening Range pivots is market stability. By narrowing your stock search to a small number of industry groups, the number of stocks you have to study is dramatically reduced. In stock market analysis, the most popular moving average lengths are 50 and days. D is the decision or buy trade point in bullish "Gartley" setup. Investopedia is part of the Dotdash publishing family. Technical Analysis Basic Education. I use a specific set of Fibonacci extensions and Fibonacci projections. SPX1D. Compare Accounts. A double top spread betting forex trading system what will futures trading do to bitcoin identified by two prominent peaks.
In his book, he describes the dynamic statistical analysis of "Fibonacci Zones" using Open, High and Close to find high percentage support and resistance zones for the entire trading day. Figure Support and Resistance An uptrend is marked by rising peaks and troughs. Expansion in price action is where one side has wrestled control from the other competing side, moving the price action firmly in a given direction. Each of his 65 patterns includes a brief synopsis written in plain English and an actual chart to reinforce the concept, not a conveniently drawn perfect example that never occurs in real life. The top of the bar is the highest price reached within that time-frame and the low of the bar is the lowest price reached within that time-frame. Session expired Please log in again. In order for this three bar pattern to be confirmed we also need the bar from the right to break above the high of the bar from the left. I Trade: A trade is taken in the direction of the breakouthreakdown from of the pattern. Still, they are poorly understood by beginners and often become a source of frustration, especially when trying to master some of the more esoteric price patterns like iron butterflies, Fibonacci extensions, Elliott wave theory, Gartley, and so forth. The prior direction before the "Rectangle" formation was upside. The pattern suggests a pullback rally in downtrend. The choice to be in a market sector or industry group can easily be implemented through the use of mutual funds that specialize in specific market sectors or industry groups. Gaps within the 3-bar patterns also have significance. Stop: For breakout trades, place a stop order at low-ORB.
Trade: Trade a clear breakout of the top trend line. This type of price action is marked by price gaps in the direction of the primary trend, strong close in the upper range of the price bars in the direction of the trend, and price bars that have expanded price range two or three times their normal trading range in the direction of the trend as well. On February 01,, at around 2. I found significant success using this basic technique and use it in examples throughout this book. Fibzones are plotted at the end of the day for the next trading day. That hasn't always been the case in recent history, however. Ratio charts are a good way to spot sector rotations within the stock market. They are almost identical to "Bull flags," but in the opposite direction. In addition to knowing key turning points, the benefits of trading symmetric "priceltime" cluster levels include low-risk trades. Triangles are among the most reliable of the continuation patterns. For a short trade, enter a short trade on breakdown at the ORB value below the Low. Any indicators derived from the time and price values, are either overlaid on the chart itself or plotted in secondary-graphs below and above the main priceltime chart. That is to say, a secondary, or intermediate, correction against a major uptrend often retraces about half of the prior uptrend before the bull trend is again resumed. These extension patterns form when prices trade outside of XA swing. It is one of the powerful patterns like the Gartley pattern. Bollinger Bands, 8. As a rule, heavier volume marked by larger vertical bars at the bottom of the chart should be present in the direction of the prevailing price trend. A down trendline is drawn down and to the right, connecting the successive declining market highs. Nevertheless, regardless of any trading theory or complex mathematical algorithm, the success in the markets lies with individual who can clearly understand the price-action and make the decisions to pull the trigger at the right time with excellent discipline. Being able to distinguish among them can provide useful and profitable market insights.
Target: "NR7ID with ORB" is primarily a trade entry technique and the targets are set at prior "swing highs" and prior "swing lows" or at key resistance and support forex course london play money. Place a "stop" order above the high of the "Diamond at Stop: Place a "stop" order one-tick below the low of the WR70D bar for breakouts. As a rule, the longer a trendline has been in effect and the more times it has been tested, the more significant it. Enter a "long" trade above the high of MSL at In counter-trend trading, there are no clear confirmations other than price trading at some level, divergence, completion of pattern structure, or plain hunch. I was fortunate to meet explaing a brokerage account stock trading in chinese of the best market 'gurus' and learn the market ropes from. Similarly, if I am presenting a short setup after a trendline breakdown, I initiate a 'short' trade only at 1 or 2 ticks below the breakdown bar's low. Some of the chart pattern techniques have a very high success rate. The second, and often the more difficult, step is market timing. Click Here to learn how to enable JavaScript. After completion of D, a "long" trade is entered one-tick above previous bars' high. One of the techniques in trading "Bollinger bands" is when a new highllow price trade outside a band and subsequent highsllows are falling inside the band.
This will help you identify with better accuracy the market swing high and low points. The Russell Index measures the performance of smaller stocks. In bullish and bearish 5-point swings, the pattern must have 0. On May 10,ER2 sold off in the pre-afternoon session and started to make new lows around 12pm. By scanning the market for trends that are in place, you can start to identify periods of price contraction where a stock's trend has stopped making higher highs and higher lows in a bullish trend, and lower lows and lower highs in a bearish trend. Place a "stop" order above the MSH high at A "long" trade is entered at C with a "stop" order placed below A. Target: Targets in "Rectangle" formations are based on the depth of the rectangle pattern. Another way to use "Keltner Bands" is to trade in the direction of the trend. The crash will also come fast. In both patterns the D point extends beyond the X and the C thinkorswim alerts to cell phone how to trade futures on thinkorswim can be bitmex automated trading intraday price prediction or outside of the XA range. In the afternoon, ER2 rallied back from "support band" A and closed in the "resistance band" B. Another advantage of limiting your stock search to winning sectors and groups is that it narrows the search considerably. Traders who wait and take advantage of these counter-trades are daring and risky, but they do present a healthy risklreward profit ratio. The outer bands are constructed using a day ATR. On most trading days, when markets trade through Globex lows, how to short coins on bittrex bitcoin trading forex brokers strongly suggests a weaker market, and when markets trade above the Globex highs where to exchange money for bitcoin can etherdelta trade one token for something other than ethereum suggests a stronger market. This is very valid question and will be addressed when studying the patterns. The B level retracement was Also, when prices reach the bottom trend line, enter a long position or close a short position.
There are many other indicators that measure the trend of volume - with names like Accumulation Distribution, Chaikin Oscillator, Market Facilitation Index, and Money Flow. A "stop" order was placed at the mid Donchain channel line and used as a trail stop. See below: Step 6: Hide your protective Stop Loss below the three bar pattern. A vertical bar connects the high and low the range. I 1 Stop: , Place a "stop" order below the low of the pattern for a "matching lows" pattern. Andrews' "Pitchfork" consists of three "swing" pivot points, A, B, C and three parallel lines. Enter a "long" trade one-tick above the breakout bar's high at 8 Two leading candidates during the period of time just described were Internet and Semiconductor stocks. Got it! He is consistent and disciplined, but what sets Suri apart is his ability to find and exploit regular market patterns. Plot the high, low, and closing settlement prices for the market. Figure Symmetrical Triangle An example of a symmetrical triangle during the advance in Citigroup.
In mid May , ER2 triggered a "short" trade as it closed below the 4- week Donchian price channels at levels. The trend direction on the breakout from the "Falling Wedge" pattern would be upside. The measuring technique in a topping pattern is to measure the vertical distance from the top of the head to the neckline and to project the distance downward from the point where the neckline is broken. The uptrend is continued when a resistance peak is exceeded. A "short" trade is entered when the prices close below the breakdown's bars low must be below the trendline. The B retracement differentiates between the Gartley and Bat patterns. If price closes above the top trend line, exit the trade. The more recently the support or resistance level has been formed, the more power it exerts on subsequent market action. Looks like we are nearing the end of wave 5. A head and shoulders top is characterized by three prominent market peaks. A MSL trading opportunity is shown in April around levels.