suriNotes.com’s Feb. 12, 2018 Chart Patterns & Algo. Trader A Weekly Publication Trading Parabolic Arc Patterns
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 V19
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 “If you keep detailed records you can learn from past trades and increase your chances of recognizing your strengths and weaknesses.” – Tony Oz “If you already know that the terrible anxiety of financial loss would be more than you can mentally and emotionally tolerate, this concern must be weighed heavily in the risks you take.” - Steven Hendlin "Don't concentrate on winning; concentrate on the process that creates winning.” - Mark Boucher
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 Parabolic Arc 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 ■ADBE Parabolic Arc Pattern ■CRM ABC Bullish Pattern ■DATA ABC Bullish Pattern ■HDP Inv. H&S Pattern ■SPLK Cup & Handle Pattern ■WDC ABC Bullish Pattern ■SAP AB=CD Pattern ■SWKS Cup & Handle Pattern ■KORS Bullish Dragon Pattern ■AAPL 3-Drives Pattern ■ADSK Head and Shoulders Pattern ■AVGO Parabolic Arc Pattern ■AVGO ABC Bearish Pattern ■BA Parabolic Arc Pattern ■GLD Cup & Handle Pattern ■TWTR Double Bottom Pattern ■JD Cup & Handle Pattern ■OLED Mega Phone Pattern ■IIF ABC Bearish Pattern ■NTES Parabolic Arc Pattern ■PCLN Parabolic Arc Pattern ■X Cup & Handle Pattern 10 11 12 13 14 15 16 17 18 19 23 24 25 26 27 28 29 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
■BIDU AB=CD Pattern ■FOSL ABC Bullish Pattern ■GRPN Cup & Handle Pattern ■KO Cup & Handle Pattern ■OXY Dragon Pattern ■PEP Cup & Handle Pattern ■UA ABC Bullish Pattern ■@CD ABC Bullish Pattern ■@CL Inv. H&S Pattern ■@DX Head and Shoulders Pattern ■@EC Inv. H&S Pattern ■@HG 3-Drives Pattern ■@JY Inv. H&S Pattern ■AUDJPY H&S Pattern ■GBPAUD ABC Bullish Pattern ■GBPCAD Double Bottom Pattern ■USDCAD ABC Bullish Pattern ■USDJPY Head and Shoulders Pattern ■USDSGD AB=CD Bullish Pattern ■QM Fib. Zone Pivots ■@ES Gap Chart ■YM Gap Chart 49 50 51 52 53 54 55 59 60 61 62 63 64 68 69 70 71 72 73 77 81 83
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 1212.9, Stop below 1149.2 (-63.7), Target1 Zone: 1352 to 1407, Target2 Zone: 1565 to 1680 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, 5650-8610. www.surinotes.com
Chart Patterns & Algorithmic Trader (18) $TRAN ABC Bullish Pattern $TRAN (Dow Jones Transportation Index) is forming a new ABC Bullish pattern. Underlying trend (eSIX) is bearish. www.surinotes.com
Chart Patterns & Algorithmic Trader Sector ETF Charts (19) Weekly Sector ETF Charts www.surinotes.com
Big Data Stocks
(YTD%)
Chart Patterns & Algorithmic Trader (23) ADBE Parabolic Arc Pattern Reviewed in CPAT 1/22/18 $ADBE (W) is trading in Parabolic Arc from 08/19/2011 (low: 22.67) to 02/02/2018 (high: 204.45). 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 (24) CRM ABC Bullish Pattern Reviewed in CPAT 11/20/17 CRM (W) ABC Bullish Pattern Long Entry above 73.71, Stop below 66.42 (-7.29), Target1 Zone: 86.1 to 91.5, Target2 Zone: 106.9 to 118.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (25) DATA ABC Bullish Pattern Reviewed in CPAT 1/15/18 DATA (D) ABC Bullish Pattern Long Entry above 70.56, Stop below 68.36 (-2.20), Target1 Zone: 81.6 to 85.2, Target2 Zone: 95.5 to 103.0 www.surinotes.com
Chart Patterns & Algorithmic Trader (26) HDP Inv. H&S Pattern Reviewed in CPAT 10/16/17 HDP (D) is trading in Inv. H&S Pattern. Long entry above 11.59, Stop below 10.34 (1.25), Target1 Zone: 14.8 to 15.7, Target2 Zone: 18.2 to 20.0 www.surinotes.com
Chart Patterns & Algorithmic Trader (27) SPLK Cup & Handle Pattern Reviewed in CPAT 10/23/17 SPLK (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: 69.33, Mid Cup Level: 61.70, T1: 78.5 to 81.1 T2: 88.4 to 93.6 www.surinotes.com
Chart Patterns & Algorithmic Trader (28) WDC ABC Bullish Pattern WDAY (W) ABC Bullish Pattern Long Entry above 69.44, Stop below 65.78 (-3.66), Target1 Zone: 94.2 to 102.0, Target2 Zone: 124.2 to 140.4 www.surinotes.com
Chart Patterns & Algorithmic Trader SAP AB=CD Pattern (29) SAP (Weekly) is trading in AB=CD pattern. AB=CD pattern completion level is $121, $137-144. www.surinotes.com
Chart Patterns Stocks/Options/Indexes
Chart Patterns & Algorithmic Trader (31) SWKS Cup & Handle Pattern Reviewed in CPAT 09/18/17 SWKS (Weekly) is trading in Cup & Handle pattern. Cup & Handle patterns are traded when price closes above breakout level. Current breakout level: $112.88. Handle low is $93. www.surinotes.com
Chart Patterns & Algorithmic Trader (32) KORS Bullish Dragon Pattern KORS (Weekly) is trading in Bullish Dragon pattern. Targets: $73-84 Reviewed in CPAT 12/18/17 www.surinotes.com
Chart Patterns & Algorithmic Trader (33) AAPL 3-Drives Pattern AAPL (Daily) is trading in 3-Drives (Bearish) pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (34) ADSK Head and Shoulders Pattern Reviewed in CPAT 10/16/17 ADSK (D) is trading in H&S Pattern (F). Short entry below 108.65, Stop above 113.94 (-5.29), Target1 Zone: 94.8 to 91.0, www.surinotes.com
Chart Patterns & Algorithmic Trader (35) AVGO Parabolic Arc Pattern Reviewed in CPAT 10/30/17 AVGO (W) is trading in Parabolic Arc from 09/10/2010 (low: 18.41) to 02/02/2018 (high: 285.68). 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 (36) AVGO ABC Bearish Pattern Reviewed in CPAT 02/05/18 AVGO is trading in ABC Bearish pattern. Short entry is below $267, first target range: $249-254, Second Targets: $221 to $233. www.surinotes.com
Chart Patterns & Algorithmic Trader (37) BA Parabolic Arc Pattern Reviewed in CPAT 1/15/18 BA (W) is trading in Parabolic Arc from 02/12/2016 (low: 102.10) to 02/02/2018 (high: 361.45). 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 (38) GLD Cup & Handle Pattern Reviewed in CPAT 2/05/18 GLD (D) is trading in Cup & Handle Pattern. Entry above breakout level: 128.32, Handle Low: 124.36, 36.26% below breakout level. T1: 135.1 to 136.9 T2: 142.2 to 146.0 www.surinotes.com
Chart Patterns & Algorithmic Trader (39) TWTR Double Bottom Pattern Reviewed in CPAT 12/18/17 TWTR is trading in a Double Bottom and Rectangle Channel patterns. Double Pattern and Channel Targets are: $36-38. www.surinotes.com
Chart Patterns & Algorithmic Trader (40) JD Cup & Handle Pattern JD (Daily) is forming Cup & Handle pattern. Cup & Handle patterns are valid only when price trades above breakout level ($49). Cup Mid level: $42.39. Targets: $54, $57-59. www.surinotes.com
Chart Patterns & Algorithmic Trader (41) OLED Mega Phone Pattern Reviewed in CPAT 1/29/18 OLED (Daily) is trading in Mega Phone pattern. OLED lower megaphone support level is at $138-142. www.surinotes.com
Chart Patterns & Algorithmic Trader (42) IIF ABC Bearish Pattern IIF (Daily) is trading in ABC Bearish Pattern. ABC Bearish short-entry is below $34.59, Targets: $31.6 to $32.4, $28-29.55 www.surinotes.com
Chart Patterns & Algorithmic Trader (43) NTES Parabolic Arc Pattern NTES (W) is trading in Parabolic Arc pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (44) PCLN Parabolic Arc Pattern PCLN (Weekly) is trading in Parabolic arc pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (45) X Cup & Handle Pattern X is trading in Cup & Handle pattern. Breakout level: $41.83. Reviewed in CPAT 1/29/18 www.surinotes.com
Earnings Companies releasing earnings in the next few weeks.
February Earnings Calendar
March Earnings Calendar
Chart Patterns & Algorithmic Trader (49) BIDU AB=CD Pattern BIDU (Daily) is trading in ABC Bearish pattern. Short entry level is below 251 with targets at $226 to 235 and $185-202. www.surinotes.com
Chart Patterns & Algorithmic Trader (50) FOSL ABC Bullish Pattern FOSL (D) ABC Bullish Pattern Long Entry above 8.20, Stop below 7.15 (-1.05), Target1 Zone: 10.5 to 11.4, Target2 Zone: 14.0 to 15.9 www.surinotes.com
Chart Patterns & Algorithmic Trader (51) GRPN Cup & Handle Pattern Reviewed in CPAT 02/05/18 GRPN (Daily) is trading in Cup & Handle pattern. Breakout level is above $5.94. www.surinotes.com
Chart Patterns & Algorithmic Trader (52) KO Cup & Handle Pattern Reviewed in CPAT 1/08/17 KO (Daily) is trading in Cup & Handle pattern. KO earnings: 2/16/18. Breakout level (47.25) and Handle Low: 43.39, 51.59% below breakout level. If price breaks above the breakout level, T1: 51.6 to 52.8 www.surinotes.com
Chart Patterns & Algorithmic Trader (53) OXY Dragon Pattern OXY (W) is trading in Bullish Dragon pattern. OXY Earnings: 2/13/18. Dragon patterns are traded from long side when price closes above hump level (C: 78.54). www.surinotes.com
Chart Patterns & Algorithmic Trader (54) PEP Cup & Handle Pattern Reviewed in CPAT 1/29/18 PEP (D) is trading in Cup & Handle Pattern. PEP Earnings: 2/13/18 C&H patterns are traded when price closes above breakout level: 119.39 www.surinotes.com
Chart Patterns & Algorithmic Trader (55) UA ABC Bullish Pattern Reviewed in CPAT 10/16/17 UA (D) ABC Bullish Pattern Long Entry above 12.12, Stop below 11.40 (-0.72), Target1 Zone: 14.7 to 15.6, Target2 Zone: 18.2 to 20.0 www.surinotes.com
Chart Patterns Futures & Commodities
Futures D, W, M, YTD Chg%
Futures Weekly Performance
Chart Patterns & Algorithmic Trader (59) @CD ABC Bullish Pattern Reviewed in CPAT 11/13/17 @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 (60) @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: $70-72.95 www.surinotes.com
Chart Patterns & Algorithmic Trader (61) @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 (62) @EC Inv. H&S Pattern Reviewed in CPAT 1/15/18 @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 (63) @HG 3-Drives Pattern @HG (Copper Futures) is trading in 3-Drives (Bearish) pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (64) @JY Inv. H&S Pattern Reviewed in CPAT 12/11/17 @JY (D) is trading in Inv. H&S Pattern (F). Long entry above 0.90285, Stop below 0.89345 (0.00940), Target1 Zone: 0.9183 to 0.9225, Target2 Zone: 0.9345 to 0.9433 www.surinotes.com
Chart Patterns FX
FX Weekly Performance
FX Chg%
Chart Patterns & Algorithmic Trader (68) AUDJPY H&S Pattern Reviewed in CPAT 10/16/17 AUDJPY (D) is trading in H&S Pattern (F). Short entry below 85.446, Stop above 87.264 (-1.819), Target1 Zone: 82.45 to 81.64, Target2 Zone: 79.29 to 77.59 www.surinotes.com
Chart Patterns & Algorithmic Trader (69) GBPAUD ABC Bullish Pattern Reviewed in CPAT 1/29/18 GBPAUD (W) ABC Bullish Pattern Long Entry above 1.65501, Stop below 1.61605 (-0.03896), Target1 Zone: 1.7328 to 1.7646, Target2 Zone: 1.8560 to 1.9222 www.surinotes.com
Chart Patterns & Algorithmic Trader (70) GBPCAD Double Bottom Pattern Reviewed in CPAT 12/18/17 GBPCAD (W) ABC Bullish Pattern Long Entry above 1.63029, Stop below 1.58356 (-0.04673), Target1 Zone: 1.7145 to 1.7500, Target2 Zone: 1.8525 to 1.9267 www.surinotes.com
Chart Patterns & Algorithmic Trader (71) USDCAD ABC Bullish Pattern USDCAD (D) ABC Bullish Pattern Long Entry above 1.23751, Stop below 1.22454 (-0.01297), Target1 Zone: 1.2776 to 1.2921, Target2 Zone: 1.3336 to 1.3637 www.surinotes.com
Chart Patterns & Algorithmic Trader (72) USDJPY Head and Shoulders Pattern USDJPY (D) is trading in H&S Pattern (F). Short entry below 111.646, Stop above 112.696 (-1.050), Target1 Zone: 109.74 to 109.22, Target2 Zone: 107.73 to 106.65 www.surinotes.com
Chart Patterns & Algorithmic Trader (73) USDSGD AB=CD Bullish Pattern USDSGD (D) is trading in AB=CD Bullish Pattern. www.surinotes.com
Key Support/Resistance, Pivots
Chart Patterns & Algorithmic Trader ES Fib. Zone Pivots (75) @ES Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (76) NQ Fib. Zone Pivots NQ Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (77) QM Fib. Zone Pivots QM Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (78) GC Fib. Zone Pivots @GC Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader YM Fib. Zone Pivots (79) YM Fib. Zone Pivots www.surinotes.com
GAP Charts Shows filled and unfilled gap levels
Chart Patterns & Algorithmic Trader @ES Gap Chart (81) @ES Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader @NQ Gap Chart (82) @NQ Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader YM Gap Chart (83) @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: Energy,Financials,Healthcare
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 Parabolic Arc Patterns by Suri Duddella Parabolic Arc chart patterns form when a steep rise in prices caused by irrational buying and intense speculation. Parabolic Arc patterns are rare, but they are reliable and are generated in mega bull trends. These patterns trend gradually making higher highs and lower lows in the beginning stages but can be volatile in the exhaustion and reversal stages. Irrational buying in the public generates a strong rally to push prices vertically, followed by a steep sell-off. Examples of this market types are the NASDAQ bullish markets during 19902000 (retraced 80%) and Gold prices from 2000-2011 (retraced 62%). Parabolic Arc is a reversal pattern and has a very predictable outcome. Although these patterns are predictable, they are relatively difficult to trade since the market sentiment is bullish and may be fairly tough to point reversals to trade. Most Parabolic Arc patterns have a significant correction of 62-79% of its price rise (from the top). Psychology behind Parabolic Arc Patterns Parabolic Arc patterns consist of both panic buying and panic selling scenarios. As a stock breaks out and starts to rise investors tend to feel its rising cycle is never going to end and build confidence based on hysteria. This misjudgment provides a blind faith in investors as the stock chart takes exponential curve based structure. In the state of rising parabolic arc, the price continues to rise without a pause and (or) with series of upside gaps. The stock price itself could multiply double or triple or quadruple in this process every year. In its last stage, parabolic arcs move vertically as panic buying (climactic buy) in an absence of sellers on some unfounded expectations/news/events. Most of this climactic buy is driven by momentum and amateur traders, in fear of being left behind. Finally, the reality sets in with some negative event or unfavorable news, and it takes out the buyers, this creates Panic Selling. The prices reverse dramatically with large ranges as the initial buyers take profits. The traders who bought at the top also start to sell on panic. Hence, in most cases, Parabolic Arcs are great trades after it reaches its panic buying. Trading Parabolic Arc Patterns Trade: In Parabolic Arc patterns, prices move up vertically and eventually the acceleration comes to a stop and then reverses. Prices start showing lower-lows and may attempt to regain the top again. Draw a channel connecting the top and bottom of the pattern. Enter a “short” trade at the breakdown of the channel trend line connecting the pattern high and pattern lows. Target: Measure the distance of the rise from the base to the top of the pattern. Most Parabolic Arc patterns return to the 62-79% of its rise. 50% is the first target. Examples The following chart shows the Parabolic Arc pattern formation in current USDCAD (weekly) from 2012 to 2016. Here are some of the key points and how it is traded.
Trading Parabolic Arcs CURRENT EXAMPLES Parabolic Arc patterns are not quite easy to trade. As they are really long-term patterns (years to decades) and there is a fear associated with trading them. I consider these patterns only for shorting rather than trading upside. When prices are rising, there is a fear associated with shorting as prices can rise asymptotically for extended periods of time. We have built proprietary algorithms to detect these patterns and built various trading theories on how to trade them. Most Parabolic arc patterns do return to 50-62% of its prior rise. Here are some examples. The above chart shows CMG chart and its trade. CMG traded in Parabolic Arc from 2008 to 2017 from a low of $36 to a high of $758. Once Parabolic Arc is completed, a short trade signal is given below $630 with a price target between $311 to $397.
Current Examples
PlatoAlgo. Performance Report (02/09/18) 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
Poster 24” x 36” (100 lb. Gloss Paper) 30 illustrated patterns with Entries, Stops and Targets Pattern Conditions & Trading Rules $19.95 (FREE Shipping in the US) suriNotes.com PATTERNS | PRODUCTS | RESEARCH | BLOG Please send comments and suggestions to suriNotes@gmail.com
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