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suriNotes.com’s Jan. 22, 2018 Chart Patterns & Algo. Trader A Weekly Publication Trading Bearish Shark Patterns ●Daily/Weekly/Monthly Analysis ●Auto Generated Chart Patterns/Analysis ●Algorithmic Trading Analysis/Results ●Relative Strength Ranks SOCIAL MEDIA

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 V16

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 "To play any game successfully, you have to have some skill, an edge. But beyond that, it is money management. Good traders manage the downside; they don’t worry the upside. “ - Mark Minnervini “ I don't know where speculation got such a bad name, since I know of no forward leap which was not fathered by speculation.” - John Steinbeck "In the business world, the rearview mirror is always clearer than the windshield.” - Warren Buffett "

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 Bearish Shark 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 (W) ABC Bullish Pattern ■@TY ABC Bearish Pattern ■BRTI Parabolic Arc Pattern ■WB ABC Bullish Pattern ■SOCL AB=CD (Bearish) Pattern ■GPRO Head and Shoulders Pattern ■NTES Dragon Bearish pattern ■YELP ABC Bullish Pattern ■GOOG Asc. Triangle Pattern ■TCHEY ABC Bullish Pattern ■KO Cup & Handle Pattern ■CMG ABC Bullish Pattern ■GILD ABC Bullish Pattern ■CVX Cup & Handle Pattern ■AMGN Cup & Handle Pattern ■TSLA ABC Bullish Pattern ■ADBE Parabolic Arc Pattern ■BA Parabolic Arc Pattern ■SPLK Cup & Handle Pattern ■AVGO ABC Bullish Pattern ■FSLR Cup & Handle Pattern ■XOP (W) ABC Bullish Pattern ■FIVE (W) ABC Bullish Pattern ■TIF Rectangle Channel Pattern ■NKE Rectangle Channel ■@AD ABC Bullish Pattern ■@CD Inv. H&S Pattern ■@EC Inv. H&S Pattern 10 11 12 13 14 15 16 20 21 22 23 24 25 26 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 46 47 48

■@EC Cup & Handle Pattern ■@LH ABC Bullish Pattern ■@RR ABC Bullish Pattern ■@SF Dragon Bullish Pattern ■AUDJPY Cup & Handle Pattern ■GBPCAD Double Bottom Pattern ■GBPJPY Rectangle Channel ■AUDCHF ABC Bullish Pattern ■NZDJPY Rectangle Channel ■AUDJPY ABC Bullish Pattern ■QM Fib. Zone Pivots ■@ES Gap Chart ■YM Gap Chart ■AMTD Cup & Handle pattern ■UAL ABC Bullish Pattern ■ABT Rectangle Channel ■FFIV ABC Bullish Pattern ■AAL Symm. Triangle Pattern ■ETFC Inv. HS Pattern ■JBLU Dragon Pattern ■KLAC Cup & Handle Pattern ■SBUX ABC Bullish Pattern 49 50 51 52 56 57 58 59 60 61 65 69 71 75 76 77 78 79 80 81 82 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 www.surinotes.com

Chart Patterns & Algorithmic Trader (14) @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 (15) @TY ABC Bearish Pattern @TY (10 Yr U.S. Treasury Notes) is trading in ABC Bearish pattern. www.surinotes.com

Chart Patterns & Algorithmic Trader (16) 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

Social Media Stocks

Social Media Stocks (YTD%)

Social Media Stocks SOCL Global X Social Media ETF

Chart Patterns & Algorithmic Trader (20) WB ABC Bullish Pattern WB (D) ABC Bullish Pattern Long Entry above 106.85, Stop below 102.07 (-4.78), Target1 Zone: 122.9 to 128.6, Target2 Zone: 144.9 to 156.7 www.surinotes.com

Chart Patterns & Algorithmic Trader (21) SOCL AB=CD (Bearish) Pattern SOCL (W) is trading in AB=CD pattern as price reaches the second target zone (34.538). AB=CD pattern reversal must be confirmed by eSIX bearish/consolidation trend (RED). www.surinotes.com

Chart Patterns & Algorithmic Trader (22) GPRO Head and Shoulders Pattern GPRO (Daily) is trading in Head and Shoulders pattern. www.surinotes.com

Chart Patterns & Algorithmic Trader (23) NTES Dragon Bearish pattern NTES is trading in Dragon Bearish pattern. www.surinotes.com

Chart Patterns & Algorithmic Trader (24) YELP ABC Bullish Pattern $YELP (W) ABC Bullish Pattern Long Entry above 30.93, Stop below 26.92 (-4.01), Target1 Zone: 44.8 to 49.6, Target2 Zone: 63.6 to 73.7 www.surinotes.com

Chart Patterns & Algorithmic Trader (25) GOOG Asc. Triangle Pattern GOOG (Daily) is trading in Ascending Triangle pattern. GOOG breakout level: $988.3, Target ranges: $1032-1048, 1093-1126, 1186-1219. www.surinotes.com

Chart Patterns & Algorithmic Trader (26) TCHEY ABC Bullish Pattern $TCEHY (D) ABC Bullish Pattern Long Entry above 48.09, Stop below 46.78 (-1.31), Target1 Zone: 56.2 to 58.8, Target2 Zone: 66.2 to 71.6 www.surinotes.com

Chart Patterns Stocks/Options/Indexes

Chart Patterns & Algorithmic Trader (28) KO Cup & Handle Pattern Reviewed in CPAT 1/08/18 $KO (D) is trading in Cup & Handle Pattern. Entry above breakout level: 47.13, Handle Low: 44.33, 38.62% below breakout level. T1: 51.6 to 52.8 T2: 56.3 to 58.9 www.surinotes.com

Chart Patterns & Algorithmic Trader (29) 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 (30) 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 (31) CVX Cup & Handle Pattern Reviewed in CPAT 10/23/17 $CVX (D) is trading in Cup & Handle Pattern. Entry above breakout level: 119.00, Handle Low: 112.52, 39.39% below breakout level. T1: 129.2 to 131.9 T2: 139.9 to 145.6 www.surinotes.com

Chart Patterns & Algorithmic Trader (32) AMGN Cup & Handle Pattern Reviewed in CPAT 10/23/17 $AMGN (D) is trading in Cup & Handle Pattern. Entry above breakout level: 184.21, Handle Low: 168.10, 50.27% below breakout level. T1: 204.0 to 209.4 T2: 224.9 to 236.1 www.surinotes.com

Chart Patterns & Algorithmic Trader (33) TSLA ABC Bullish Pattern $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 (34) ADBE Parabolic Arc Pattern ADBE (W) is trading in Parabolic Arc pattern. Reviewed in CPAT 09/18/17 www.surinotes.com

Chart Patterns & Algorithmic Trader (35) BA Parabolic Arc Pattern BA (Weekly) is trading in Parabolic Pattern. Reviewed in CPAT 1/15/18 www.surinotes.com

Chart Patterns & Algorithmic Trader (36) SPLK Cup & Handle Pattern Reviewed in CPAT 10/23/17 $SPLK (D) is trading in Cup & Handle Pattern. Entry above breakout level: 69.23, Handle Low: 62.34, 45.75% below breakout level. T1: 78.5 to 81.1 T2: 88.4 to 93.6 www.surinotes.com

Chart Patterns & Algorithmic Trader (37) AVGO ABC Bullish Pattern Reviewed in CPAT 1/08/18 $AVGO (D) ABC Bullish Pattern Long Entry above 261.30, Stop below 253.38 (7.92), Target1 Zone: 286.9 to 296.0, Target2 Zone: 322.2 to 341.1 www.surinotes.com

Chart Patterns & Algorithmic Trader (38) FSLR Cup & Handle Pattern Reviewed in CPAT 1/08/18 $FSLR (D) is trading in Cup & Handle Pattern. Entry above breakout level: 74.29, Handle Low: 70.14, 8.52% below breakout level. T1: 104.4 to 112.6 T2: 136.2 to 153.2 www.surinotes.com

Chart Patterns & Algorithmic Trader (39) XOP (W) ABC Bullish Pattern Reviewed in CPAT 11/20/17 $XOP (W) ABC Bullish Pattern Long Entry above 30.66, Stop below 28.95 (-1.71), Target1 Zone: 43.1 to 47.0, Target2 Zone: 58.1 to 66.1 www.surinotes.com

Chart Patterns & Algorithmic Trader (40) FIVE (W) ABC Bullish Pattern Reviewed in CPAT 11/20/17 $FIVE (W) ABC Bullish Pattern Long Entry above 38.41, Stop below 35.02 (-3.39), Target1 Zone: 50.9 to 55.3, Target2 Zone: 67.7 to 76.7 www.surinotes.com

Chart Patterns & Algorithmic Trader (41) TIF Rectangle Channel Pattern Reviewed in CPAT 11/20/17 TIF (Daily) is trading in Rectangle channel pattern. Rectangle Channel breakout is above $97.29 and target levels: 102.78, 108.27 www.surinotes.com

Chart Patterns & Algorithmic Trader (42) NKE Rectangle Channel Reviewed in CPAT 9/18/17 $NKE (Daily) is trading in Rectangle Channel. Channel breakout level: $59, Target levels: $63, $67. www.surinotes.com

Chart Patterns Futures & Commodities

Futures Chg%

Futures Weekly Performance

Chart Patterns & Algorithmic Trader (46) @AD ABC Bullish Pattern Reviewed in CPAT 1/15/18 $@AD (D) ABC Bullish Pattern Long Entry above 0.7567, Stop below 0.7497 (0.0070), Target1 Zone: 0.800 to 0.814, Target2 Zone: 0.853 to 0.881 www.surinotes.com

Chart Patterns & Algorithmic Trader (47) @CD Inv. H&S Pattern @CD (W) is trading in Inv. H&S Pattern. Long entry above 0.80760, Stop below 0.76782 (0.03978), Target1 Zone: 0.8827 to 0.9031, Target2 Zone: 0.9619 to 1.0044 www.surinotes.com

Chart Patterns & Algorithmic Trader (48) @EC Inv. H&S Pattern @EC (W) is trading in Inv. H&S Pattern (F). Long entry above 1.19920, Stop below 1.18225 (0.01695), Target1 Zone: 1.2846 to 1.3079, Target2 Zone: 1.3748 to 1.4232 www.surinotes.com

Chart Patterns & Algorithmic Trader (49) @EC Cup & Handle Pattern Reviewed in CPAT 1/08/18 $@EC (D) is trading in Cup & Handle Pattern. Entry above breakout level: 1.19920, Handle Low: 1.11530, 60.69% below breakout level. T1: 1.2846 to 1.3079 T2: 1.3748 to 1.4232 www.surinotes.com

Chart Patterns & Algorithmic Trader (50) @LH ABC Bullish Pattern $@LH (D) ABC Bullish Pattern Long Entry above 67.379, Stop below 65.375 (2.004), Target1 Zone: 72.09 to 73.91, Target2 Zone: 79.15 to 82.94 www.surinotes.com

Chart Patterns & Algorithmic Trader (51) @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 & Algorithmic Trader (52) @SF Dragon Bullish Pattern @SF is trading in Bullish Dragon Pattern. www.surinotes.com

Chart Patterns FX

FX Weekly Performance

FX Chg%

Chart Patterns & Algorithmic Trader (56) AUDJPY Cup & Handle Pattern Reviewed in CPAT 11/13/17 $AUDJPY (D) is trading in Cup & Handle Pattern. Entry above breakout level: 90.294, Handle Low: 87.155, 52.55% below breakout level. T1: 93.99 to 94.99 T2: 97.88 to 99.97 www.surinotes.com

Chart Patterns & Algorithmic Trader (57) GBPCAD Double Bottom Pattern Reviewed in CPAT 12/18/17 $GBPCAD (D) ABC Bullish Pattern Long Entry above 1.60458, Stop below 1.58356 (-0.02102), Target1 Zone: 1.7145 to 1.7500, Target2 Zone: 1.8525 to 1.9267 www.surinotes.com

Chart Patterns & Algorithmic Trader (58) GBPJPY Rectangle Channel Reviewed in CPAT 10/16/17 GBPJPY (Daily) trading in Rectangle channel. Channel breakout is 147.769. Target levels: 152.02, 156.271. www.surinotes.com

Chart Patterns & Algorithmic Trader (59) AUDCHF ABC Bullish Pattern Reviewed in CPAT 12/18/17 $AUDCHF (D) ABC Bullish Pattern Long Entry above 0.74910, Stop below 0.74154 (-0.00756), Target1 Zone: 0.7817 to 0.7926, Target2 Zone: 0.8241 to 0.8468 www.surinotes.com

Chart Patterns & Algorithmic Trader (60) NZDJPY Rectangle Channel NZDJPY (Daily) is trading in Rectangle Channel pattern. www.surinotes.com

Chart Patterns & Algorithmic Trader (61) AUDJPY ABC Bullish Pattern $AUDJPY (D) ABC Bullish Pattern Long Entry above 85.050, Stop below 84.320 (0.730), Target1 Zone: 89.77 to 91.25, Target2 Zone: 95.51 to 98.60 www.surinotes.com

Key Support/Resistance, Pivots

Chart Patterns & Algorithmic Trader ES Fib. Zone Pivots (63) @ES Fib. Zone Pivots www.surinotes.com

Chart Patterns & Algorithmic Trader (64) NQ Fib. Zone Pivots NQ Fib. Zone Pivots www.surinotes.com

Chart Patterns & Algorithmic Trader (65) QM Fib. Zone Pivots QM Fib. Zone Pivots www.surinotes.com

Chart Patterns & Algorithmic Trader (66) GC Fib. Zone Pivots @GC Fib. Zone Pivots www.surinotes.com

Chart Patterns & Algorithmic Trader YM Fib. Zone Pivots (67) YM Fib. Zone Pivots www.surinotes.com

GAP Charts Shows filled and unfilled gap levels

Chart Patterns & Algorithmic Trader @ES Gap Chart (69) @ES Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com

Chart Patterns & Algorithmic Trader @NQ Gap Chart (70) @NQ Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com

Chart Patterns & Algorithmic Trader YM Gap Chart (71) @YM Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com

Earnings Companies releasing earnings in the next few weeks.

January Earnings Calendar

February Earnings Calendar

Chart Patterns & Algorithmic Trader (75) AMTD Cup & Handle pattern Reviewed in CPAT 09/18/17 $AMTD (W) is trading in Cup & Handle Pattern. Entry above breakout level: 47.41, Handle Low: 41.83, 49.42% below breakout level. T1: 54.4 to 56.3 T2: 61.7 to 65.7 www.surinotes.com

Chart Patterns & Algorithmic Trader (76) UAL ABC Bullish Pattern Reviewed in CPAT 1/15/18 $UAL (W) ABC Bullish Pattern Long Entry above 60.80, Stop below 56.50 (-4.30), Target1 Zone: 84.7 to 92.4, Target2 Zone: 114.5 to 130.4 www.surinotes.com

Chart Patterns & Algorithmic Trader (77) ABT Rectangle Channel ABT (Daily) reached its 2nd target zone in Rectangle Channel. Reviewed in CPAT 10/09/17 www.surinotes.com

Chart Patterns & Algorithmic Trader (78) FFIV ABC Bullish Pattern $FFIV (W) is trading in Cup & Handle Pattern. Entry above breakout level: 149.50, Handle Low: 134.50, 43.02% below breakout level. T1: 171.0 to 176.9 T2: 193.8 to 206.0 www.surinotes.com

Chart Patterns & Algorithmic Trader (79) AAL Symm. Triangle Pattern Reviewed in CPAT 12/11/17 AAL (Daily) is trading in Symmetric Triangle pattern. AAL Breakout level: $54. Targets: $60, $66. www.surinotes.com

Chart Patterns & Algorithmic Trader (80) ETFC Inv. HS Pattern ETFC (W) is trading in Inv. HS and Double bottom patterns www.surinotes.com

Chart Patterns & Algorithmic Trader (81) JBLU Dragon Pattern JBLU (Daily) is trading in Bullish Dragon pattern. Bullish Dragon entry is above $21, Stop: $19.5. Target ranges: $22.5-23.5, $24.75, $26.5-28.5 www.surinotes.com

Chart Patterns & Algorithmic Trader (82) KLAC Cup & Handle Pattern Reviewed in CPAT 11/13/17 $KLAC (D) is trading in Cup & Handle Pattern. Entry above breakout level: 109.59, Handle Low: 98.86, 49.54% below breakout level. T1: 123.0 to 126.6 T2: 137.1 to 144.7 www.surinotes.com

Chart Patterns & Algorithmic Trader (83) SBUX ABC Bullish Pattern $SBUX (W) ABC Bullish Pattern Long Entry above 55.94, Stop below 52.57 (-3.37), Target1 Zone: 61.3 to 63.6, Target2 Zone: 70.4 to 75.3 www.surinotes.com

Weekly Relative Performances

Sector & Indexes Relative Performances Winners: SemiConductors, HealthCare, Drugs Losers:Oil, OilService

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 Bearish Shark Patterns by Suri Duddella Harmonic Patterns foundation and trading concepts were laid by H.M. Gartley in 1932. H.M. Gartley wrote about a 5-point pattern (known as Gartley) in his book, Profits in the Stock Market. Few other authors who have worked on this pattern theory, but the best work to my knowledge is done by Scott Carney in his books of “Harmonic Trading.” Scott Carney also invented patterns like 'Crab,' 'Bat,' 'Shark,' '5-0' and added real depth of knowledge for with Fibonacci ratios and established rules on how to trade their trading rules, validity and risk/money management. His pioneering work is truly impressive, and the trading world should thank him immensely as he has opened newer trading styles and careers for many traders. The primary theory behind Harmonic patterns is price/time movements which adhere to Fibonacci ratio relationships and its symmetry in markets. Fibonacci ratio analysis works well with any markets and on any time-frame charts. The basic idea of using these ratios is to identify key turning points, retracements, and extensions along with a series of the swing high and the swing low points. The derived projections and retracements using these swing points (Highs and Lows) will give key price levels for Targets or Stops. Pattern Identification Harmonic pattern identification can be a bit hard with the naked eye, but once a trader understands the pattern structure, it can be relatively easily spotted by Fibonacci tools. The primary Harmonic patterns are 5-point (Gartley, Butterfly, Crab, Bat, Shark and Cypher) patterns. These patterns have embedded 3-point (ABC), 4-Point (ABCD) patterns. All the price swings between these points are interrelated and have harmonic ratios based on Fibonacci. Patterns are either forming or completed 'M' or 'W' shaped structures or combinations of 'M' and 'W', in the case of 3drives. Harmonic patterns (5-point) have a critical origin (X) followed by an impulse wave (XA) followed by a corrective wave to form the 'EYE' at (B) completing AB leg. Then followed by a trend wave (BC) and finally completed by a corrective leg (CD). The critical harmonic ratios between these legs determine whether a pattern is a retracement based or extension based pattern and defines its names (Gartley, Butterfly, Crab, Bat, Shark and Cypher). One of the significant point to remember is: All 5-point and 4-point Harmonic patterns have embedded ABC (3-Point) patterns. All 5-point Harmonic patterns (Gartley, Butterfly, Crab, Bat, Shark, Cypher) have similar principles and structures, and they differ by their ratios to identify them and locations of key nodes (X, A, B, C, D) but once one of the patterns is understood it may be relatively easy to grasp knowledge of others. It may help for traders to use an automated pattern recognition software to identify these patterns than using naked eye to find or force these pattern identification.

Trade Entries and Stops To enter a trade, I prefer a confirmation of reversal priceaction combined with a reversal trend change from the "reversal zones." at 'D'. It could be a Buy (in bullish patterns) or a Sell (in bearish patterns). Usually, 'D' is identified by a confluence of projections, retracements and extensions of prior swings (legs), universally called as "reversal zone." The entry criteria and pattern validity are determined by various other factors like current volatility, underlying trend, volume structure within the pattern and market internals etc. If the pattern is valid and the underlying trend and market internals agreeing with the Harmonic pattern reversal, then Entry levels (EL) can be calculated using price-ranges, volatility or some combination. Stop is placed above/below the last significant pivot (in 5 and 4-Point patterns it is below D for the bullish pattern, above D for bearish patterns). Target Zones Target zones in Harmonic patterns are computed based on the retracement, extensions or projections of impulse/corrective swings and Fibonacci ratios from the action point of the pattern structure. For example, in Gartley bullish pattern, the target zones are computed using XA leg from the trade action point (D). The projections are computed using Fib. ratios like 62%, 78.6% of XA leg and added to the action point (D). The extension ratios like 1., 1.27, 1.62, 2., 2.27, 2.62 are computed for potential target levels. The primary target zones are marked computed from D as 62%-78.6% of XA leg (or largest of XA and CD) as the first target zone and 127%-162% as the second target zone. Target Zone1: (D + XA*0.62) to (D+XA*.786) Target Zone2: (D + XA*1.27) to (D+XA*1.62)

Examples

PlatoAlgo. Performance Report (1/22/18) Short/Medium Term, Not for Sale or Lease.

Monty Algo. Performance (01/2/2018) 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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