As per the ABC correction Silver inching to Upside.. one can go long with sl below $27.500 for tgts $33.700/$37.400

MCX ALUMINIUM UPDATE...

BUY MCX ALUMINI(MINI LOT) IN DIPS WITH SL 102.40 FOR TGT 118/119. NOW IT IS TRADING NEAR 108, ENTER NEAR 107 TO 106 LEVELS..

SILVER ANALYSIS..10-12-2011..

FROM THE ABOVE SILVER DAILY CHART WE CAN COME TO ONE CONCLUSION THAT.. IF SILVER TRADES ABOVE 57400 (i.e. atleast 2 closings above this lvls) THEN SILVER WILL TOUCH 62320/65500 IN COMING DAYS... AND AT 58200 LVLS IT WILL FACE LITTLE BIT RESISTANCE.. IF IT CROSSES SUCCESSFULLY WILL MOVE QUICKLY TO REACH THE TGT.. AND NOW IT IS TAKING SUPPORT NEAR 56600 LVLS..  IF ANY BODY WANT TO TAKE FRESH LONG POSITIONS THEN WAIT FOR DIPS .. AND MAINTAIN STOPLOSS NEAR 54100 FOR THE TARGETS 58200/62320/65500 LEVELS.. ALL THE BEST.. 

THANKS AND  REGARDS,

K.RAJA

MCX ZINC POSITIONAL CALL..

POSITIONAL MCX-ZINCMINI ::  BUY  ZINCMINI ABOVE 106.20  WITH SL 102.80 LVLS FOR TGTS 109.50/110.80 +.   NOW ZINC TRADING AROUND 104.70 LEVELS..

Thanks and Regds,

K.Raja  


Book profits intime..

Psychological Barrier to Trading Success..

Exiting profitable trades too early : Underlying Problem: Fear of Loss

Staying in loosing trades too long :Underlying Problem: Unwilling to Accept Loss

Too tight stops :Underlying Problem: Fear of Loss

Repeatedly moving stops further away and running losses : Underlying Problem: Unwilling to Accept Loss

Over Trading : Underlying Problem: Lack of confidence

Perfectionism – the need to be right : Underlying Problem: Fear of Loss / Fear of being wrong

 

 Taken from speculationmasters

Silver Update..

The above Comex Silver chart shows that entering long side with stoploss $32.400 for the target of $34 and $35 in coming days.. I prefer longs in MCX silver also but I should buy in dips.. take ur own decision...

Thanks and Regds,

Raja.K

MCX ZINC EOD REVIEW....

The above zinc chart shows that if zinc is managed to sustain above 102 levels there will be good rally in coming days..according to the eod chart it is better to buy the zinc in dips till 99 levels by keeping stoploss near 98.50 for tgt of 105/108 levels.  All the best....

Understanding the financial crisis...

MCX COPPER VIEW FOR COMING DAYS...

The above chart is Daily chart of MCX COPPER. From the above chart, Copper is good only above if it closes above 404. If close above 404 then doors open for 418/420 tgts.. If 420 crosses with volumes.. then 430/432 possible. And If copper not close above 404 lvls there is a chance of retesting 380 lvls and then 345 levels. So decide ur trade direction...

INTRADAY CALLS FOR 20 JULY 2011 .................VAYU

BUY EDUCOMP ABV-388.70 SL-384.70  TGT>>392.50>>396.50>>400>>>>

BUY OPTOCIRCUIT ABV-275.70 SL-273.40  TGT>>277.40>>279.50>>281.40>>

BUY PARAL ABV-268.80 SL-262.20 TGT>>274.70>>281.40>>284.20>>287>>>

BUY  AMTEKAUTO ABV-155 SL-153 TGT>>156.50>>158>>160>>>

Trading Levels on 19th July 2011

BUY GODREJIND ABOVE 229 SL 226.50 TGT 232.40/234.30/236.40/240 ++

SELL GODREJIND BELOW 226.50 SL 229 TGT 225.10/223.30/221.30 --

IF GODREJIND SUSTAINS ABOVE 230 LVLS MEANS... OPEN LONG POSTINS WITH SL AT 221 FOR SHORT TERM TGT OF 248 + (i.e., FOR SWING TRADERS)

BUY BIOCON ABOVE 375.50 SL 372.50 TGT 377/380/385

SELL BIOCON BELOW 372.50 SL 375.50 TGT 370.50/368.50  

POSITIONAL TRADERS CAN PICK BIOCON IN DIPS TILL 368 LVLS WITH SL 365 FOR TGT 380 +

THANKS AND REGRADS,

RAJA

Intraday advice on 18th july

SELL RPOWER FUTURES NEAR 115/116 LVLS SL AROUND 117.30 TGT 112/109(INTRA + BTST)

INTRADAY CALLS FOR 18 JULY 2011 .................VAYU

BUY ONMOBILE ABV-99.50 SL-95.90 TGT>>102>>105>>>>>

SELL NAVINFLUOR BELOW-315 SL-320.20 TGT-310>>307>>302>>>>

MCX ZINC POSITOINAL ALERT...JUL 15 2011

POSITIONAL ALERT :: SHORT ZINCMINI AT CMP 104.50 SL 105.15 TGT 102.80/101.60   PURELY POSITONAL

INTRADAY CALLS FOR 15 JULY 2011 .................VAYU

 Dear friends even due to Friday factor Mkt may be Red  but still I m expecting upmove in those stcks>>>>

BUY CROMPGREAV ABV-243.50 SL-239.90 TGT>>247.50>>250.70>>254.50>>>>

BUY OPTOCIRCUIT ABV-278.50 SL-273.50  TGT>>282>>287.50>>288.90>>>>>

BUY DCM ABV-88.80 SL-87  TGT>>90.50>>91.80>>93>>>>

BUY HINDALCO ABV-178.50 SL-175.40 TGT>>181.50>>184.50>>187.50

MCX ADVICE ON ZINC...JULY 14 2011

ZINCMINI POSTIONAL ALERT ::: SHORT ZINCMINI AT CMP 105.60 SL ABOVE 106.30 TGT 104 IN CASE SL TRIIGERS THEN REVERSE UR TRADE WITH SL AT 105 .. ONLY MINI LOT (CAN DO MULTIPLE LOTS)

INTRADAY EQUITY CALLS... FOR JUL 14, 2011

BUY ONGC ABOVE 289.10 SL 286 TGT 291/293/295/297

SELL ONGC BELOW 286.50  SL 289.10 TGT 284.80/282.70/280.70

BUY BHARTIARTL ABOVE 397.80 SL AT 395 TGT 400/402.50/405

THANKS

THANX BRO......................VAYU

HEY FRIENDS...... I AM BACK.........

HI FRIENDS..I AM BACK.. AFTER TAKING SOME BREAK...... FROM NOW ONWARDS BLOGGER ACTIVITY WILL BE ASUSUAL...

THANKS AND REGRDS,

RAJA

CASH CALLS ON JUNE 9TH 2011

Buy IRB above 165.5 sl 161 Tgt 170/175/179 Eod Cmp 164.30

Buy Biocon with sl 367 TGt 375/380/385/390 (intra + Swing Trade) Eod cmp 370

Buy V-guard With Sl 218 Tgt 227.50/236 Eod Cmp 226 Pick in dips.

SHORT TERM POSITIONAL CALLS FOR JUNE SERIES..

BUY KOTAKBANK WITH SL 433 CLOSING BASIS FOR TGT 460/465/472 NOW TRADING AROUND 442 LVLS PICK IN DIPS OR AT CMP 

&&&&&&

BUY HDIL WITH SL 165 CLOSING BASIS TGT 175.50/187/191/199

MCX POTATO POSITINAL CALL

POSITINAL CALL :: BUY POTATO IN DIPS WITH SL 506 CLOSING BASIS FOR TGTS 575 >> 620 >> 655 >> 680
NOW TRADING AROUND 524 LEVELS. LOT SIZE 300 ONE POINT MOVEMENT IS +/- 300 .. IF ENTERED AT CURRENT TRADING PRICES RISK WILL BE 5500

INCASE CLOSE BELOW 506 THEN OPEN DOORS FOR SHORTS WITH SL AT 522 FOR TGTS 496 >> 475

Hunt Brothers Silver Market in 1980's and NOW!!!

Hunt brothers Silver market in 1980's and NOW !!!

 

When silver rose to $49.45 per ounce in 1980, the government said that the rise was due to the Hunt brothers "cornering" the silver market. The truth is, silver reached $49.45 in 1980 due to the massive inflation that was created by the U.S. government during the 1970s, and the Hunt brothers were used as a scapegoat. The Hunt brothers were accumulating silver in order to protect themselves from a collapsing U.S. dollar, just like we have been encouraging our members to do in a countless number of articles and videos over the past two years. 

 When the Hunt brothers were accused by the U.S. government of "cornering" the silver market and trying to manipulate silver prices higher, they only owned a concentrated long position of approximately 100 million ounces of silver. JP Morgan today has a concentrated naked short position in silver of approximately 122.5 million ounces, but the U.S. government doesn't seem to have any problem with it. 

 The problem with the Hunt brothers' strategy of accumulating such a large concentrated long position in silver is that after silver prices rose, their position was simply too large for them to ever sell without causing silver prices to crash. With silver reaching $49.45 per ounce in early 1980, the world was about to lose confidence in the U.S. dollar, which would have caused an outbreak of hyperinflation. In a desperate attempt to save the U.S. dollar and prevent hyperinflation, the CBOT raised margin requirements and limited traders' positions to only 3 million ounces of silver futures. The COMEX also limited traders' positions to 10 million ounces of silver futures. Not only that, but the COMEX and CBOT only had a total of 120 million ounces of silver in inventory, and the COMEX was likely going to default from futures contract holders requesting physical delivery. The COMEX was forced to go into "liquidation only" mode, ending all silverfutures contract buying. 

 Combined with the Federal Reserve rapidly rising interest rates, silver prices began to plunge and the Hunt brothers were hit with massive margin calls. On one single day in March of 1980 when the Hunt brothers were forced to liquidate a large part of their position, silver lost 1/3 of its value, declining by over $5 to $10.80 per ounce. That represented a total decline of 78% from its high two months earlier. 

 We are receiving a countless number of emails asking if now is the time to sell silver, and if silver could crash by 78% once again like it did in 1980. The fact is, while the Hunt brothers' 100 million ounce concentrated silver position was on the long side, JP Morgan's 122.5 million ounce concentrated silver position is on the short side.

  While the Hunt brothers' long position was impossible to sell without causing silver prices to crash, JP Morgan's naked short position is impossible to cover without causing silver prices to explode to the upside. Being that the CFTC was so quick in 1980 to support the position limits that were then imposed by the CBOT and COMEX, NIA believes it would only be fair for the CFTC to mandate similar position limits today. This is unlikely to occur because the U.S. government believes JP Morgan's silver manipulation to be a good thing, since it is giving the phony appearance that the U.S. dollar still has purchasing power. The free market will ultimately win in the end and silver prices will soar through the roof to where they belong based on supply and demand fundamentals.

POSTIONAL NICKEL CALL

BUY AND HOLD NICKEL WITH SL 1150 ( CLOSING BASIS) FOR TGT 1200/1215/1230 ++ NOW TRADING AROUND 1171 LVLS... PICK IN DIPS WITH SPECIFIED STOPLOSS..

POSITONAL MCX ADVICE

BUY AND HOLD CRUDE OIL IN EVERY DIPS WITH SL 4880 TGT 5110 ++   NOW TRADING AROUND 4950 LVLS

PICK IN DIPS

COMMODITY ADVICES FOR INTRA ON APRIL 21 2011

TRADING ADVICES ON APRIL 21 2011

BUY COPPER ABOVE 425.50 SL 423.90 TGT 426.50/427.80/429.10/430.40/431.70 +
SELL COPPER BELOW 423.90 SL 425.50 TGT 422.90 / 421.70/420.30/419 --
BUY ZINCMINI ABOVE 104.50 SL 103.70 TGT 105/105.60/106.30/106.90 +
SELL ZINCMINI BELOW 103.70 SL 104.50 TGT 103.20/102.60/102/101.30 --
BUY CRUDEOIL ABOVE 4953 SL 4942 TGT 4960/4969/4978/4986/4995 ++
SELL CRUDEOIL BELOW 4942 SL 4953 TGT 4936/4928/4918/4909 --

WAIT FOR 5 TO 10MTS AFTER MKT OPENING TO TRADE AS PER ABOVE LVLS...


ALL THE BEST...

SILVER FUNDAMENTALS......

Quick Fundamentals on Silver:
In 1900 there were 12 billion oz of silver in the world. By 1990, estimates say that figure had been reduced to around 2.2 billion ounces of silver. Today, that figure has fallen to less than 1 billion ounces in above ground refined silver. It is estimated more than 90% of all the silver that has ever been mined has been consumed by the global photography, technology, medical, defence and electronic industries.
 On current supply/demand trends, the amount of above ground refined silver is projected to shrink to even lower levels in the coming years. Industrial demand has been outstripping mining supply for most of the last 20 years, driving above ground supply to historically low levels. Few in the investment world are aware of this important fact.
 Silver production has been flat in recent years while demand has been increasing. This hasn’t resulted in significantly higher prices yet because the world has been able to fill the gap from inventories and official government stockpiles.
 However, today the U.S. government’s stockpile is all but gone, and sales from other official sources, such as China, Russia and India, are declining, too. The decline in refined silver stocks, from around 2.2 billion ounces in 1990 to around 300 million ounces today means that silver stocks are near an all time low.
 Silver is unusual as its supply is inelastic.
 This means that silver production will not ramp up significantly if the silver price goes up.  Supply didn’t increase significantly in the 1970′s when silver rose more than 35 fold in price – from $1.40/oz in 1971 to a high of nearly $50/oz in 1980. Importantly, silver is a byproduct metal and some 80% of mined silver is a byproduct of base metals. Higher prices for silver will not cause copper, nickel, zinc, lead or other base metal miners to increase their production. In the event of a global stagflationary or deflationary slowdown, demand for base metals would likely fall thus further decreasing the supply of mined silver.
 source : email

MCX TRADING ADVICES ON 19TH APRIL 2011

Intraday trading advices... On april 19 2011

buy copper above 415.30 sl 413.70 tgt 416.30/417.50/418.80
sell copper below 413.70 sl 415.30 tgt 412.70/411.40/410.20/408.90 --

buy zincmini above 104.60 sl 103.60 tgt 105/105.70/106.25
sell zincmini below 103.60 sl 104.60 tgt 101.80 /102.55/103.20

buy crudeoil above 4753 sl 4742 tgt 4760/4768/4777 ++
sell crudeoil below 4742 sl 4753 tgt 4736/4727/4719--

wait for 10 to 15 mts after mkt opening to trade in this lvls...

 

AB = CD PATTERN

Lots of us hear from the technical analysts this term AB=CD and want to know more about it.

AB=CD pattern is one of the most famous harmonic patterns, which can help us to determine when to enter the market or rather when to make the decision of entering short or long positions.

The pattern represents the rhythmic movements for the price using Fibonacci levels. This geometric pattern consists of three consecutive price swings, in other words three price trends.

The pattern requires specific ratios of Fibonacci as explained below.

First: C point must retrace at 61.8% Fibonacci from AB leg or (78.6%).

Second: D point occurs at 127.2% or 161.8% projection of BC leg.

Four important notes:

1) When (C) point retraces to 61.8% the projection will be at 161.8%.

2) When (C) point retraces to 78.6% the projection will be at 127.2%.

3) In rare cases the D point indicates reversal from 100% Fibonacci level and it makes a potential double top or double bottom formation. 

4) CD may equal AB in time.

The images below explain the story of this successful pattern.

Bullish AB=CD

 Bearish AB=CD

Kinds of AB=CD pattern

Classic AB=CD

AB=CD Extension

The technical objective:

Mainly the price retraces 38.2% Fibonacci level of CD leg and the extended targets reside around 61.8% of this leg.

Note that it rarely reaches 161.8% of CD leg.

ADVANCED MCX ADVICE FOR EVENING SESSSION 14-04-2011

BUY COPPER ABOVE 424.20 SL 422.70  TGT 426.50/427.80

SELL COPPER BELOW 422.70 SL 424.20 TGT 420.40/419

PRICE ACTION TRADING........

Swing Highs and Lows
The first thing that we need to recognise is what is a Swing High and Swing Low. This is probably the easiest part of price action and bar counting although the whole process gets easier with practice.

I define a swing high as;
     A three bar combination
     A bar preceded and succeeded by lower highs

I define a swing low as;
     A three bar combination
     A bar preceded and succeeded by higher lows

Market Phases
There are only three ways the market can go;

• Up
• Down
• Sideways

With the swing high/low definition now in mind we can start to build some layers on to the chart to identify these market phases and start to do a simple count of these swing highs and lows.
In short

• The market is going up when price is making higher highs and higher lows
• The market is going down when price is making lower highs and lower lows
• The market is going sideways when price is not making higher highs and higher lows OR lower highs lower lows

This may sound like child's play and a statement of the obvious but you will be surprised at how often people will forget these simple facts. One of the biggest questions I get asked is, which way is the market going? By doing a simple exercise you can see which way that price is going and decide on your trading plan and more importantly timing of a trade.
What do I mean by timing? It may be that you are looking for a shorting opportunity as the overall trend is down but price on your entry time frame is still going up (making HH's & HL's). There is, at this stage, no point in trying to short a rising market until price action start to point down (making LH's & LL's. More on this shortly).

Bias Changes

A Short or Bearish Bias Change occurs when the following sequence develops.

HH>HL>LH>LL>LH The bias change is confirmed when price moves below the las lower low made as highlighted on the chart.

Another way of saying this is 123 reversal and you are trading the pullback as your entry trigger (Red Line).

There are a few variations of this pattern but this is quite simply a price action bias change in its simplest form.

A Long or Bullish Bias Change occurs when the following sequence develops.

LL>LH>HL>HH>HL The bias change is confirmed when price moves above the last higher high made as highlighted on the chart.

Another way of saying this is 123 reversal and you are trading the pullback as your entry trigger (Blue Line).

There are a few variations of this pattern but this is quite simply a price action bias change in its simplest form.

Trending Price Action
After a bias change has been seen and confirmed, one of the phases that the market can then take is to start trending either up or down depending on the bias change previously.
In the chart below we can see what price ideally looks like when price is trending up and trending down. Each phase shows price making HH's & HL's on its way up and LH's & LL's on its way down.

Ranging Price action
Now this is where the chart can become interesting. By using the price action counting of the swing highs and lows we can know at a very early stage IFprice is going to start to develop range bound activity.

• Price is not making new highs OR new lows

I don't mean all time highs/lows or new day/week/month highs/lows... just simply a new chart swing high or low. Price will start to stall and not make a new swing high/low and typically will stay contained within the last swing high and low that was made on the chart. Isn't that a simple definition?

Range rule definitions

• Price doesn't make a new high or low on the move
• If price stays contained within the last swing high and swing low to be made, price will remain range bound until it makes news move highs or lows.
• Price confirms the range when a lower high and a higher low is made within the previous swing high and low.

In the chart below you can see that from the left side of the chart price is making LH's & LL's all the way to the first blue arrow which in real time would be the latest lowest low. Price then moves higher to make a HH. These two swing levels have been highlighted.
At the point of the chart, in real time, price needs to either start moving higher past the last swing high (red Arrow) making a new high OR move lower past the last swing low (blue arrow) making a new low. Until either of those things happens price will most likely remain range bound. In this example that is what happened.

Range considerations
Some considerations for identifying ranges at an early stage in real time are;

• That price could be creating a pullback or bias change and as the chart unfolds for you a new high or low could be made voiding the potential range.
• There are several definitions of a range one of the more common ones is that you are looking for a double touch of support and resistance. For me this is a little too late in the game as price may not create the double touch as in the example above. With this price action method you can identify the possibility of a range developing VERY early without having to worry IF price does or does not give you the double touch. As you can see with that definition you would interpret that price is not range bound at all but, you can clearly see visually that price is moving sideways without any definition.

What you should have learnt from this short article A simple rule defined method to identify swing highs and lows How to use this swing high/low definition to interpret price action market phases How to identify a bias change How to identify trending price action How to identify Range bound price action Bias Change pattern variation In the below images we can see the pattern variation and compare them to the outlined pattern above.  The only main difference is that you are looking for a breach of a previous swing high or low as the first qualifier to indicate a potential bias change.

Acronyms used

• HH - Higher High
• HL - Higher Low
• LH - Lower High
• LL - Lower Low

 By Philip Newton

POSITIONAL ZINC ADVICE

POSITIONAL ZINC/ZINCMINI CALL.. BUY WITH SL XXXX FOR TGT 119.80/121 ++  

POSITONAL COMOIDTY CALL

SELL COPPER ON EVERY RISE WITH SL 437 FOR ULTIMATE TGTS 408/397

POSTIONAL CALLS FOR APRIL........

BUY RADICO WITH SL 129 FOR TGT 146/149 ++ CMP 136.25

BUY ICSA WITH SL 115 FOR TGT 140 CMP 125

BUY KGL WITH SL 10 FOR TGT 19/20 ++ CMP 14.60

BUY KSK WITH SL 99.80 FOR TGT 126/130 ++ CMP 107.65

BUY RENUKA WITH SL 68 FOR TGT 86/90 ++ CMP 76

BEFORE ENTERING INTO TRADES CONSIDER RISK.......

AND CMP IS EOD VALUE..... PICK IN DIPS... OR AT SPECIFIED LVLS.... OR ONE PICK ABOVE AT CMP VALUE ALSO BASED ON THEIR RISK APETITE......

MCX TRADING ADVICE........

MCX POSTIONAL CALL..... SHORT COPPER ON EVERY RISE.. YOUR SL AT 433 AND TGT 416/415... NOW TRADING AROUND 423.70

POSTIONAL CALLS FOR APRIL 2011

BUY BOMBAYDYING WITH SL 362 FOR TGT 390/399 CMP 371 

BUY EDELWEISS WITH SL 37.30 TGT 44/45/50 CMP 40.25

BUY GIPCL WITH SL 85 TGT 101/103 CMP 93

BUY HCC WITH SL 35.60 TGT 42/46/49 CMP 37.70

BUY HEROHONDA WITH SL 1508 TGT 1650/1690/1720 CMP 1567

BUY MRPL WITH SL 61 TGT 68/72 CMP 64.35

BUY NEYVELILIG WITH SL 101 FOR TGT 115/117 CMP 106.85

BUY TATASTEEL WITH SL 605 FOR TGT 636/640

BUY SESAGOA WITH SL 271 FOR TGT 300/317 ++ 

BUY SHANTIGEAR WITH SL 34.40 TGT 40/42/45 CMP 36.95

BUY TATAELXSI SL 244 TGT 275/280 ++ CMP 256

BUY VIJAYABANK WITH SL 73.30 TGT 89/96 ++ CMP 80.60

BEFORE ENTERING INTO TRADES... TAKE RISK INTO CONSIDERATION...... 

ALL THE BEST...

30 BASIC CHART PATTERNS USED IN TRADING.........

It is important to note that the technical analysis overview provided does not attempt to be a comprehensive treatment of charting or technical analysis methods. There are numerous, well-written books on chart interpretation and technical analysis. A brief and simplistic review of some basic charting concepts are provided for reference or to stimulate further study.
Technical Analysis makes the assumption that history repeats itself. Any trading method or system that works well on a broad sample of historical data, may have validity when applied to future trading environments. One should keep in mind that the markets are dynamic. The forces that motivate price movement are dynamic, and the participants are dynamic. Therefore any system which has performed well on past historic data may decline in value as the evolving dynamics of the markets change over time.
The assumption is made that trading results can be improved when trading skills are improved. This requires practice! Surely any time spent learning to trade on past historical data, will not be wasted when it comes to preparing to trade for the future.

Trendlines

Inclining Trendline
A straight line usually drawn to define an uptrend against or through price bar lows.

Declining Trendline
A straight line usually drawn to define a downtrend against or through price bar highs.

Support
A horizontal floor where interest in buying a commodity is strong enough to overcome the pressure to sell. Therefore a decrease in price is reversed and prices rise once again. Typically, support can be identified on a chart by a previous set of lows.

Resistance
A horizontal ceiling where the pressure to sell is greater than the pressure to buy. Therefore, an increase in price is reversed and prices revert downward. Typically resistance can be located on a chart by a previous set of highs.

Channels

Inclining
The inclining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor.

Declining
The declining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the declining channel has a decrease in both the price ceiling and price floor.

Horizontal or Sideways
A horizontal or sideways is a formation that features both resistance and support. Support forms the low price bar, while resistance provides the price ceiling.

Triangles

Symmetrical
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.

Non-Symmetrical
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a non-symmetrical triangle. To trade this formation, place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.

Ascending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Ascending Triangle should be sloping from lower to higher and from left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Ascending triangles, with a prior downtrend, are anticipated to break down and out, rather than up and out.

Descending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Descending Triangle should be sloping from higher to lower and left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Descending triangles, with a prior uptrend, are anticipated to break up and out, rather than down and out.

Pennants
Similar to a Symmetrical Triangle but generally stubbier or not as elongated. A formation in which the slope of price bar highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation, you can place orders at both the break up and out of the pennant and break down and out of the pennant.

Wedges

Rising or Inclining
This formation occurs when the slope of price bar highs and lows join at a point forming an inclining wedge. The slope of both lines is up with the lower line being steeper than the higher one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Rising wedges, with a prior downtrend are anticipated to break down and out, rather than up and out.

Falling or Declining
This formation occurs when the slope of price bar highs and lows join at a point forming an declining wedge. The slope of both lines is down with the upper line being steeper than the lower one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Falling wedges, with a prior uptrend, are anticipated to break up and out, rather than down and out.

Flags

Bull Flag
A formation consisting of a small number of price bars where the slope of price bar highs and lows are parallel and declining. Bull Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bull Flag the trend leading to the formation of the Bull Flag is up. To trade this formation, place orders on the break up and break down points, leaving your unfilled order as your stop loss.

Bear Flag
A formation consisting of a small number of price bars in which the slope of price bar highs and lows are parallel and inclining. Bear Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bear Flag the trend leading to the formation of the Bear Flag is down. To trade this formation, place buy and sell orders on the break up and down of the flag, leaving the unfilled order as your stop loss.

Top and Bottom Formations
1-2-3 (A-B-C) Top
Anticipates a change in trend from up to down on a break below the number 2 point.

1-2-3 (A-B-C) Bottom
Anticipates a change in trend from down to up on a break above the number 2 point.

Head and Shoulders Top
Anticipates a decline on a break below the Neckline.

Head and Shoulders Bottom
Anticipates a rise in prices on a break above the Neckline.

Double Top
Anticipates a change in trend from up to down.

Double Bottom
Anticipates a change in trend for down to up.

Triple Top
Anticipates a change in trend from up to down.

Triple Bottom
Anticipates a change in trend from down to up.

Rounded Top
Anticipates a change in trend from up to down.

Rounded Bottom
Anticipates a change in trend from down to up.

Congestions
Generally refers to any type of chart pattern in which prices are temporarily trapped in a trading range. The range can be converging, expanding or defined by parallel lines on the horizontal. Congestions of shorter duration are usually found to be a variation of a Flag, or some variation of a converging or expanding triangle. Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being Continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.
Continuation Patterns
Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.

Gaps

Breakaway Gaps
Occur when prices gap higher or lower out of a congestion pattern in the direction of the prevailing trend.

Measuring or Running Gaps
Difficult to identify, but usually occur at the midpoint in a price rally or decline.

Exhaustion Gaps
Occur at the end of a market trend, usually after steep accelerated uptrend or downtrend. The gap can leave one price bar or a small number of congestive price bars behind.

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Retracements

Fibonacci Retracements
Fibonacci Retracement levels correspond percentage retracements that occur in the ebb and flow of a market trend. According to the Elliot Wave Theory, market trends tend to occur in five distinct waves: three waves that move in the direction of the trend with the middle or third wave being the strongest usually, alternating against two counter-trend waves. Elliot asserted that these counter-trend waves will usually retrace against the trending waves by 38.2, 50 and 61.8 percent (also, less frequently by 24 and 76 percent). These Retracement Percentages correspond to natural ratios discovered by the Greeks called the Golden Ratio and rediscovered by Fibonacci, a medieval, Italian Mathematician.