suriNotes.com’s Feb. 05, 2018 Chart Patterns & Algo. Trader A Weekly Publication Trading Rectangle Channel Patterns ●Daily/Weekly/Monthly Analysis ●Auto Generated Chart Patterns/Analysis ●Algorithmic Trading Analysis/Results ●Relative Strength Ranks 5G Networks
Chart Patterns & Algorithmic Trader 2018 ALL RIGHTS RESERVED No part of this document may be reproduced or transmitted without the express written consent of the suriNotes.com or Suri Duddella. This document relies on sources and information reasonably believed to be accurate, but neither the author nor publisher guarantees accuracy or completeness. The examples in this document could be considered hypothetical trades. The CFTC warns that: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. COPYRIGHT © 2018 – suriNotes.com Data & Charts are created by TradeStation Software from TradeStation Securities. Published in the United States of America V18
Disclaimer: All the material in this document is provided as Educational Material only. NONE of the chart patterns or chart setups or all other material in this document are trade recommendations. Trading is risky. You are 100% responsible for your own trading. Trading is risky. You are 100% responsible for your own trading. suriNotes.com or Suri Duddella, specifically disclaims any and all express and implied warranties. Your trades may entail substantial loss. Nothing in this document should be construed as a recommendation to buy or sell any security or other instrument, or a determination that any trade is suitable for you. Chart Patterns and other material in this document are Auto generated in TradeStation software and we try our best to check for errors and data consistency, but they may still consist of data or algorithmic errors.
Market Quotes "Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.” -Bruce Kovner “One has to have an interest to understand what is going on in this market. That is a characteristic which very few people have. Most people feel bored.” - Alpesh B. Patel “Experience is that marvelous thing that enables you recognize a mistake when you make it again.” -Paul Dickson
Table of Contents US Markets Patterns Gallery Chart Patterns Energy & Oil Stocks Stocks/Futures/Commodities/FX Earnings Next Week/Charts Watch Lists Bullish/Bearish, Relative Strength Key Supp/Resistance/Pivots Charts Gap Charts Weekly Relative Performances ALGORITHMIC TRADER Trading Rectangle Channel Patterns Algorithmic Trades Symbols Universe Books/Websites/Software
Chart Links ■Major Market Indexes Trends ■Gold, Silver, Oil and 10 Yr Notes ■TRAN, VIX, DXY, @TY ■@QM Inv. H&S Pattern ■@GC Cup & Handle Pattern ■@GC (W) ABC Bullish Pattern ■@TY ABC Bearish Pattern ■BRTI Parabolic Arc Pattern ■$TRAN ABC Bullish Pattern ■Sector ETF Charts ■IBM ABC Bullish Pattern ■IDCC ABC Bullish Pattern ■IDTI Symm. Triangle Pattern ■AVGO ABC Bearish Pattern ■INTC Symm. Triangle Pattern ■QCOM Symmetric Triangle Pattern ■SWKS Cup & Handle Pattern ■T Inv. H&S Pattern ■Parabolic Arc Patterns ■BRTI ABC Bearish Pattern ■BRTI Parabolic Arc Pattern ■GDX Rectangle Channel Pattern ■FSLR Cup & Handle Pattern ■GRPN Cup & Handle Pattern ■TSLA ABC Bullish Pattern ■CTRP Inv. H&S Pattern ■UPS Cup & Handle Pattern ■EBAY Cup & Handle Pattern ■AMCX Symmetric Triangle Pattern ■BUD ABC Bullish Pattern ■LRCX Parabolic Arc Pattern ■GLD Symm. Triangle Pattern 10 11 12 13 14 15 16 17 18 19 23 24 25 26 27 28 29 30 32 33 34 35 36 37 38 39 40 41 42 43 44 45
■GLD Cup & Handle Pattern ■GLD ABC Bullish Pattern ■OLED MegaPhone Pattern ■XOM Inv. H&S Pattern ■GS Cup & Handle Pattern ■XLE Cup & Handle Pattern ■AKAM Symm. Triangle Pattern ■CERN Bullish Dragon Pattern ■CMG ABC Bullish Pattern ■CMI ABC Bullish Pattern ■GILD ABC Bullish Pattern ■ULTI ABC Bullish Pattern ■NTES Parabolic Arc Pattern ■TSLA ABC Bullish Pattern ■@CD ABC Bullish Pattern ■@CL Inv. H&S Pattern ■@DX Head and Shoulders Pattern ■@EC Inv. H&S Pattern ■@HO ABC Bullish Pattern ■@RR ABC Bullish Pattern ■QM Fib. Zone Pivots ■@ES Gap Chart ■YM Gap Chart 46 47 48 49 50 51 55 56 57 58 59 60 61 62 66 67 68 69 70 71 78 82 84
Major Indexes
Major Indexes Major Indexes %Chg YTD
Chart Patterns & Algorithmic Trader (10) Major Market Indexes Trends All four major market indexes (Weekly) charts are showing strong eSix trends. www.surinotes.com
Chart Patterns & Algorithmic Trader (11) Gold, Silver, Oil and 10 Yr Notes Gold regained 200 SMA as it trades higher above 200 MA. Silver and Oil are below its 200 MA and Treasury Notes is just below 200 MA. www.surinotes.com
Chart Patterns & Algorithmic Trader (12) TRAN, VIX, DXY, @TY Transportation Index, VIX, U.S. Dollar Index (Weekly) and eSIX trend indicator. www.surinotes.com
Chart Patterns & Algorithmic Trader (13) @QM Inv. H&S Pattern @QM (D) is trading in Inv. H&S Pattern. Long entry above 51.615, Stop below 49.115 (2.500), Target1 Zone: 56.68 to 58.06, Target2 Zone: 62. to 64.9, Target3 zone: $70-$73. www.surinotes.com
Chart Patterns & Algorithmic Trader (14) @GC Cup & Handle Pattern $@GC (D) is trading in Cup & Handle Pattern. Entry above breakout level: 1372.0, Handle Low: 1335.5, 28.38% below breakout level. T1: 1451 to 1473 T2: 1535 to 1580 www.surinotes.com
Chart Patterns & Algorithmic Trader (15) @GC (W) ABC Bullish Pattern Reviewed in CPAT 09/18/17 $@GC (W) ABC Bullish Pattern Long Entry above 1207.8, Stop below 1144.1 (63.7), Target1 Zone: 1347 to 1402, Target2 Zone: 1560 to 1675 www.surinotes.com
Chart Patterns & Algorithmic Trader (16) @TY ABC Bearish Pattern Reviewed in CPAT 1/22/18 @TY (10 Yr U.S. Treasury Notes) is trading in ABC Bearish pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (17) BRTI Parabolic Arc Pattern Reviewed in CPAT 1/08/18 $BRTI (CME’s Bitcoin Index) is trading in Parabolic Arc pattern. Targets: 10758, 6450-8610. www.surinotes.com
Chart Patterns & Algorithmic Trader (18) $TRAN ABC Bullish Pattern $TRAN (Dow Jones Transportation Index) is trading in ABC Bullish pattern from November 2017 (9685). Target zones: 10081-10261, 10779-11154, 11849-12224 www.surinotes.com
Chart Patterns & Algorithmic Trader Sector ETF Charts (19) Weekly Sector ETF Charts www.surinotes.com
5G Networks Stocks
5G Networks Stocks (YTD%)
5G Networks Stocks
Chart Patterns & Algorithmic Trader (23) IBM ABC Bullish Pattern Reviewed in CPAT 12/04/17 $IBM (D) ABC Bullish Pattern Long Entry above 148.68, Stop below 146.20 (-2.48), Target1 Zone: 160.7 to 164.6, Target2 Zone: 175.9 to 184.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (24) IDCC ABC Bullish Pattern $IDCC (D) ABC Bullish Pattern Long Entry above 72.09, Stop below 70.55 (-1.54), Target1 Zone: 76.5 to 78.1, Target2 Zone: 82.7 to 86.0 www.surinotes.com
Chart Patterns & Algorithmic Trader (25) IDTI Symm. Triangle Pattern IDTI is trading in Symmetric Triangle Pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (26) AVGO ABC Bearish Pattern AVGO (D) is trading in ABC Bearish pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (27) INTC Symm. Triangle Pattern Reviewed in CPAT 10/16/17 INTC (W) is trading in Symmetric Triangle Pattern. Symm. Triangle pattern breakout was above $35. www.surinotes.com
Chart Patterns & Algorithmic Trader (28) QCOM Symmetric Triangle Pattern QCOM (Weekly) is trading in Symm. Triangle pattern. Symm. Triangle pattern breakout level is $70.5. www.surinotes.com
Chart Patterns & Algorithmic Trader (29) SWKS Cup & Handle Pattern Reviewed in CPAT 09/18/17 $SWKS (W) is trading in Cup & Handle Pattern. Entry above breakout level: 112.88, Handle Low: 93.00, 34.05% below breakout level. T1: 149.0 to 158.8 www.surinotes.com
Chart Patterns & Algorithmic Trader T Inv. H&S Pattern (30) $T (D) is trading in Inv. H&S Pattern (F). Long entry above 39.33, Stop below 37.83 (1.50), Target1 Zone: 43.5 to 44.7, Target2 Zone: 47.9 to 50.3 www.surinotes.com
Chart Patterns Stocks/Options/Indexes
Chart Patterns & Algorithmic Trader (32) Parabolic Arc Patterns AMZN, ADBE, AVGO and NVDA are trading in Parabolic Arc patterns among many other stocks with similar patterns. None of these patterns currently have tradable triggers. www.surinotes.com
Chart Patterns & Algorithmic Trader (33) BRTI ABC Bearish Pattern BRTI (CME’s Bitcoin Index) is trading in ABC Bearish Pattern. Short entry is below 14737, Stop above 16897. Targets: 9949-11462, 8102. BRTI found support at Key LT TrailStop level (7548). www.surinotes.com
Chart Patterns & Algorithmic Trader (34) BRTI Parabolic Arc Pattern $BRTI is trading Parabolic Arc pattern. Targets are shown. Reviewed in CPAT 1/08/18 www.surinotes.com
Chart Patterns & Algorithmic Trader (35) GDX Rectangle Channel Pattern GDX (Daily) is trading in Rectangle Channel pattern. Rectangle Channels are traded when price closes above upper ($25.58) or closes below lower ($21.27) boundary lines. www.surinotes.com
Chart Patterns & Algorithmic Trader (36) FSLR Cup & Handle Pattern Reviewed in CPAT 1/08/18 $FSLR (W) is trading in Cup & Handle Pattern. Entry above breakout level: 74.29, Handle Low: 67.06, 14.84% below breakout level. T1: 104.4 to 112.6 T2: 136.2 to 153.2 www.surinotes.com
Chart Patterns & Algorithmic Trader (37) GRPN Cup & Handle Pattern $GRPN (D) is trading in Cup & Handle Pattern. Entry above breakout level: 5.94, Handle Low: 4.90, 34.21% below breakout level. T1: 7.8 to 8.3 T2: 9.8 to 10.9 www.surinotes.com
Chart Patterns & Algorithmic Trader (38) TSLA ABC Bullish Pattern Reviewed in CPAT 1/22/18 $TSLA (D) ABC Bullish Pattern Long Entry above 317.89, Stop below 305.67 (12.22), Target1 Zone: 339.6 to 348.8, Target2 Zone: 375.3 to 394.5 www.surinotes.com
Chart Patterns & Algorithmic Trader (39) CTRP Inv. H&S Pattern $CTRP (D) is trading in Inv. H&S Pattern (F). Long entry above 48.74, Stop below 46.59 (2.15), Target1 Zone: 52.5 to 53.5, Target2 Zone: 56.5 to 58.6 www.surinotes.com
Chart Patterns & Algorithmic Trader (40) UPS Cup & Handle Pattern Reviewed in CPAT 12/04/17 $UPS (D) is trading in Cup & Handle Pattern. Entry above breakout level: 120.44, Handle Low: 111.25, 50.16% below breakout level. T1: 131.8 to 134.8 T2: 143.7 to 150.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (41) EBAY Cup & Handle Pattern Reviewed in CPAT 1/29/18 $EBAY (D) is trading in Cup & Handle Pattern. Entry above breakout level: 39.28, Handle Low: 37.33, 36.52% below breakout level. T1: 42.6 to 43.5 T2: 46.1 to 47.9 www.surinotes.com
Chart Patterns & Algorithmic Trader (42) AMCX Symmetric Triangle Pattern Reviewed in CPAT 10/16/17 AMCX (Daily) is trading in Symm. Triangle pattern. Watch pattern boundaries for potential trade setups. www.surinotes.com
Chart Patterns & Algorithmic Trader (43) BUD ABC Bullish Pattern $BUD (W) ABC Bullish Pattern Long Entry above 115.99, Stop below 110.06 (-5.93), Target1 Zone: 127.5 to 132.3, Target2 Zone: 145.9 to 155.8 www.surinotes.com
Chart Patterns & Algorithmic Trader (44) LRCX Parabolic Arc Pattern Reviewed in CPAT 1/29/18 $LRCX (W) is trading in Parabolic Arc from 09/25/2015 (low: 61.20) to 01/26/2018 (high: 219.70). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode. www.surinotes.com
Chart Patterns & Algorithmic Trader (45) GLD Symm. Triangle Pattern GLD (Weekly) is trading in Symmetric Triangle pattern. GLD breakout level is $129.5. www.surinotes.com
Chart Patterns & Algorithmic Trader (46) GLD Cup & Handle Pattern $GLD (D) is trading in Cup & Handle Pattern. Entry above breakout level: 128.32, Handle Low: 125.75, 23.53% below breakout level. T1: 135.1 to 136.9 T2: 142.2 to 146.0 www.surinotes.com
Chart Patterns & Algorithmic Trader (47) GLD ABC Bullish Pattern $GLD (W) ABC Bullish Pattern Long Entry above 111.91, Stop below 106.99 (-4.92), Target1 Zone: 126.1 to 131.3, Target2 Zone: 146.3 to 157.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (48) OLED MegaPhone Pattern OLED (Daily, Earnings: 2/22/18) is trading in MegaPhone pattern. Reviewed in CPAT 1/29/18 www.surinotes.com
Chart Patterns & Algorithmic Trader (49) XOM Inv. H&S Pattern Reviewed in CPAT 1/08/17 $XOM (D) is trading in Inv. H&S Pattern (F). Long entry above 83.69, Stop below 81.85 (1.84), Target1 Zone: 88.4 to 89.7, Target2 Zone: 93.4 to 96.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (50) GS Cup & Handle Pattern Reviewed in CPAT 10/16/17 www.surinotes.com
Chart Patterns & Algorithmic Trader (51) XLE Cup & Handle Pattern Reviewed in CPAT 10/16/17 $XLE (D) is trading in Cup & Handle Pattern. Entry above breakout level: 78.45, Handle Low: 74.28, 25.05% below breakout level. T1: 88.7 to 91.5 T2: 99.6 to 105.4 www.surinotes.com
Earnings Companies releasing earnings in the next few weeks.
February Earnings Calendar
March Earnings Calendar
Chart Patterns & Algorithmic Trader (55) AKAM Symm. Triangle Pattern AKAM (W) is trading in Symmetric Triangle Pattern. AKAM breakout level to the upside is : $70.5 www.surinotes.com
Chart Patterns & Algorithmic Trader (56) CERN Bullish Dragon Pattern CERN (Weekly, Earnings: 2/6/18) is trading in a Bullish Dragon Pattern. Targets: $63-67, $73, $80-89 www.surinotes.com
Chart Patterns & Algorithmic Trader (57) CMG ABC Bullish Pattern Reviewed in CPAT 1/08/18 $CMG (D) ABC Bullish Pattern Long Entry above 297.23, Stop below 286.39 (10.84), Target1 Zone: 329.9 to 341.7, Target2 Zone: 375.7 to 400.3 www.surinotes.com
Chart Patterns & Algorithmic Trader (58) CMI ABC Bullish Pattern $CMI (D) ABC Bullish Pattern Long Entry above 162.53, Stop below 158.74 (-3.78), Target1 Zone: 178.2 to 183.5, Target2 Zone: 198.8 to 209.8 www.surinotes.com
Chart Patterns & Algorithmic Trader (59) GILD ABC Bullish Pattern Reviewed in CPAT 1/08/18 $GILD (D) ABC Bullish Pattern Long Entry above 72.04, Stop below 70.04 (-2.00), Target1 Zone: 84.0 to 87.7, Target2 Zone: 98.6 to 106.5 www.surinotes.com
Chart Patterns & Algorithmic Trader (60) ULTI ABC Bullish Pattern Reviewed in CPAT 10/16/17 $ULTI (D) ABC Bullish Pattern Long Entry above 200.01, Stop below 194.79 (-5.22), Target1 Zone: 221.4 to 228.6, Target2 Zone: 249.4 to 264.4 www.surinotes.com
Chart Patterns & Algorithmic Trader (61) NTES Parabolic Arc Pattern $NTES (W) is trading in Parabolic Arc from 01/16/2009 (low: 15.61) to 01/26/2018 (high: 377.64). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode. www.surinotes.com
Chart Patterns & Algorithmic Trader (62) TSLA ABC Bullish Pattern Reviewed in CPAT 1/22/18 $TSLA (D) ABC Bullish Pattern Long Entry above 317.89, Stop below 305.67 (12.22), Target1 Zone: 339.6 to 348.8, Target2 Zone: 375.3 to 394.5 www.surinotes.com
Chart Patterns Futures & Commodities
Futures D, W, M, YTD Chg%
Futures Weekly Performance
Chart Patterns & Algorithmic Trader (66) @CD ABC Bullish Pattern Reviewed in CPAT 1/08/18 $@CD (D) ABC Bullish Pattern Long Entry above 0.78030, Stop below 0.77520 (0.00510), Target1 Zone: 0.8385 to 0.8557, Target2 Zone: 0.9053 to 0.9411 www.surinotes.com
Chart Patterns & Algorithmic Trader (67) @CL Inv. H&S Pattern Reviewed in CPAT 10/02/17 $@CL (D) is trading in Inv. H&S Pattern. Long entry above 51.54, Stop below 49.04 (2.50), Target1 Zone: 56.6 to 58.0, Target2 Zone: 61.9 to 64.8, Target3: $70.1 to $72.95 www.surinotes.com
Chart Patterns & Algorithmic Trader (68) @DX Head and Shoulders Pattern Reviewed in CPAT 1/29/18 $@DX (D) is trading in H&S Pattern (F). Short entry below 92.205, Stop above 93.015 (-0.810), Target1 Zone: 90.67 to 90.26, Target2 Zone: 89.06 to 88.19 www.surinotes.com
Chart Patterns & Algorithmic Trader (69) @EC Inv. H&S Pattern Reviewed in CPAT 1/15/18 @CL (D) is trading in Inv. H&S Pattern. Long entry above 51.54, Stop below 49.04 (2.50), Target1 Zone: 56.6 to 58.0, Target2 Zone: 61.9 to 64.8 www.surinotes.com
Chart Patterns & Algorithmic Trader (70) @HO ABC Bullish Pattern Reviewed in CPAT 11/20/17 $@HO (W) ABC Bullish Pattern Long Entry above 1.4488, Stop below 1.3451 (0.1037), Target1 Zone: 1.812 to 1.939, Target2 Zone: 2.305 to 2.570 www.surinotes.com
Chart Patterns & Algorithmic Trader (71) @RR ABC Bullish Pattern @RR (W) ABC Bullish Pattern Long Entry above 12.255, Stop below 11.520 (0.735), Target1 Zone: 13.42 to 13.93, Target2 Zone: 15.41 to 16.48 www.surinotes.com
Chart Patterns FX
FX Weekly Performance
FX Chg%
Key Support/Resistance, Pivots
Chart Patterns & Algorithmic Trader ES Fib. Zone Pivots (76) @ES Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (77) NQ Fib. Zone Pivots NQ Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (78) QM Fib. Zone Pivots QM Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (79) GC Fib. Zone Pivots @GC Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader YM Fib. Zone Pivots (80) YM Fib. Zone Pivots www.surinotes.com
GAP Charts Shows filled and unfilled gap levels
Chart Patterns & Algorithmic Trader @ES Gap Chart (82) @ES Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader @NQ Gap Chart (83) @NQ Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader YM Gap Chart (84) @YM Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Weekly Relative Performances
Sector & Indexes Relative Performances Winners: Losers: Oil, Gold/Silver,Drugs
Dow 30 Weekly Relative Performance
Select Sectors Weekly Performance
Country ETFs Weekly Performance
Commodity ETFs Weekly Performance
Watch Lists Momentum Relative Strength Bullish/Bearish Lists NH/NL Oversold/Overbought Key Retracements
Sector ETF %DWMY
Relative Strength Ranks (200)
RS Ranks Sorted (Alpha)
Bullish/Bearish List
52 Week Highs and Lows
D%, W%, M%, YTD%
Algorithmic Trading Algo. Techniques Algo. Reports Current Algorithms ALL RETURNS POSTED ON THIS PUBLICATION ARE HYPOTHETICAL PERFORMANCE GENERATED BY COMPUTERIZED SYSTEM AND THEY ARE NOT ACTUAL TRADE REPORTS. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Trading Inverse Head and Shoulders Patterns by Suri Duddella Markets provide two types of trading activity: Trending markets or Consolidating markets. Trending periods are obvious as price tends to move in one direction (up or down) without many interruptions whereas consolidation periods are indecisive and cautious as price neither continuing or reversing in a larger price trend. These consolidation periods can last from few days to several months and typically trade within a limited range and offer few trading opportunities. This price balance between bulls and bears leads to the bounded range in which price levels of resistance and support are formed in parallel to each other. This bounded range results in a Rectangular Channel pattern (or A Box Pattern). Rectangle channel patterns consist of two parallel trendlines bounding the price-action having multiple pivot points forming at equal highs and equal lows. As price approaches the lower trendline, bullish sentiment (or bulls) sets to push the price up towards the upper trendline, and when the price reaches the upper trendline, bearish sentiment (or bears) tend to push the price down towards the lower trendline, thus creating a tug-of-war. Each of these thrusts must form at least two key pivot points on the upper and lower trendlines to create a rectangle channel. This bounded range becomes a consolidation area, where traders are indecisive and may not take trend based trades. Rectangle Channel patterns is one of the popular charting technique and they are reliable chart patterns and do provide precise entry, exit, stop and target trading levels. In general, this type of pattern falls into a broader "Channeling" pattern category along with Ascending channels (rising channels) or Descending (falling channels). In Ascending channels (Rising), the price makes consecutive higher highs and higher lows, whereas, in Descending Channels (Falling), the price makes consecutive lower highs and lower lows. In Rectangle channels, the price makes horizontal (parallel) highs and lows in a box formation. These channel patterns can be both continuous or reversal patterns. The price action inside the pattern itself is considered neutral. Trading Rectangle Channels Rectangle Channel patterns are formed by price action between two key trendlines bound by multiple equal (near) highs and lows. The duration of the pattern can be few days to months. Longer duration patterns are considered to be more reliable. The pattern must have at least two pivots (equal highs or equal lows) on each of the trendlines. The price breakout can occur in any direction from the pattern, but the general belief is price may breakout in the same direction as prior direction before the pattern formation. The volume inside the pattern is non-decisive, but volume tends to increase during the breakouts. Trade: A trade setup occurs when price closes outside the trend line (upper or lower) at least two bars signaling a breakout. Trades are entered on a follow-up bar at high above the breakout bar or low below the breakdown bar. Target: Targets in Rectangle Channel formations are based on the depth of the rectangle pattern. Targets are usually set at 70 to 100% of the depth of rectangle from the trade entry. Stop: Rectangle patterns fail when prices retrace into the middle of the rectangle channel. Place a stop order just below the middle of the channel. Rectangle Channel with upside breakout
Current Examples
PlatoAlgo. Performance Report (02/02/18) Short/Medium Term, Not for Sale or Lease.
Monty Algo. Performance (02/2/2018) Long Term, NOT for Lease or Sale
Symbols Universe
Symbol Universe of Stocks/ETFs
Symbols Universe
Books/Websites/Software
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