Professional Documents
Culture Documents
Boot Camp
Why is it important
to know the
patterns?
Eliminates
emotions
1
Advanced Candlestick Patterns
2
Fry Pan Bottom
3
Fry Pan Bottom measuring point
4
Fry Pan Bottom expectations
5
Fry Pan Bottom with MA confirmation
CUP Handle
Or a J-hook pattern
6
What shows a Fry Pan Bottom failure?
7
Fry Pan Bottom – What is expected?
Dumpling Top
8
Cradle Pattern
• The Cradle Pattern is a symmetric
bottom pattern that is easy to
identify.
– A downtrend becomes obvious
with a large black candle at the
bottom.
– A series of small or indecisive
trading days trade in a flat area.
– A bullish candle, more powerful
with a Bullish Engulfing signal, is
formed of approximately the same
magnitude as a Bearish candle at
the end of the downtrend.
• This signifies that the Bulls have
come out of the indecisive trading
area with decisive force.
Cradle pattern
Cradle Pattern
9
Cradle Pattern
Cradle pattern
10
Cradle pattern
Cradle Pattern
11
Jay Hook Pattern
• The first move of the
uptrend is very strong.
• A candlestick sell signal
indicates a pullback about
to occur.
• After a few days, small
indecisive candles start to
appear
– Doji, small Hammers,
Bullish Engulfing signals
12
J-hook
Indecisive trading
13
Jay Hook
14
J-Hook – What forewarns a possible J-Hook?
15
J-Hook Relatively Quick Pull Back and Reversal
16
J-Hook – what is next target?
Bearish J-hook
Scoop Pattern
• An extended flat
trading area
– Followed by a pullback
• Buy signals bring
price back up to flat
trading range
• Once price breaks
above flat range, look
for strong uptrend
17
Scoop Pattern formation
Scoop Pattern
18
Scoop pattern
19
Scoop pattern Use it to analyze
20
Scoop pattern - And if it doesn’t work
21
Scoop – Where are the targets?
Scoop = Targets
22
Belt Hold Pattern
• Strong prevailing trend
• The candlestick body
should be the opposite
color of the prevailing
trend
• Gap on the open,
continuing the trend
• The open is the high or
low of that trend
• The length of the body
should be a long body.
Belthold
23
Belthold – shows the sellers are flushed out
Belthold
24
Belthold
Belthold Bearish
Belthold
25
Belthold – Act as good continuation patterns
26
Breakout Patterns
Breakouts
Breakouts
27
Break Out or gap up at top?
28
Breakout – where to buy?
Analyzing The
Market
29
DOW what pattern?
30
Where did it go?
Gold
31
Trading Gaps
32
Gaps – or they can be very obvious
33
Gaps – at bottom, look for the signals
Trading
Channels
34
Trading channels – signals that tops and bottoms
Trend channels
35
Trading channel -- breakout
Pennant
breakouts
36
Pennant breakouts – which direction
Pennant breakouts
Pennant breakouts
37
Pennant breakouts
Double
Bottoms
38
What does a double bottom due to the bears psyche?
39
Double Tops tell the same story
Moving Averages -
Magnets
40
MA’s act as magnets
41
MA’s Targets
42
Targets – when pattern is identified
GAP
CUP Handle
Or a J-hook pattern
Wave 1-2-3
43
The T-line
Why is it
important to know
the patterns?
It prepares you
to react to an
expected
results
44