1. The longer the trend the more the time spent in the reversal process. 2.

Reversal patterns at market tops are called Distributions. This is where the security is distributed from strong informed participants to weak uninformed participants. 3. Reversal patterns at market bottoms are called Accumulation. This is where the security is distributed from weak participants to strong participants. Strong informed participants or buyers are said to be accumulating in anticipation of better times. 4. A pattern by itself can never be categorized as reversal type until one is actually signaled. Check supporting indicators. 5. The longer the pattern takes to complete, the greater the number of fluctuations within it, and the deeper its trading range, the more substantial the following move is likely to be. 6. In technical analysis we are dealing with probabilities, not certainties. 7. The longer the pattern takes to complete / form and the greater the level of activity within it, the more significant the accumulation / distribution process and therefore the stronger the technical position. 8. The foundation of the distribution / accumulation, determines the strength and intensity of the next move. 9. The greater the number of fluctuations within a pattern the greater the significance. 10. The breaching of a wide trading range has a far greater psychological significance than that of a narrow one. 11. You should wait for 3% penetration of the boundaries before concluding that the breakout is valid. 12. False breakout actually adds validity to a specific support or resistance. Shrinking volumes can help identifying false breakouts on either side.

1. Triangles are most common price patterns but are also one of the least reliable. 2.