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Galen Woods All Charts Crop Version PDF
Galen Woods All Charts Crop Version PDF
1. Down bar
Down bar
3. Failure to clear support led
to a strong bullish reaction
1. This bar is
entirely below the
previous swing
low. It has cleared
the swing low.
2. These bars overlap with the previous
swing low. The price level is not cleared.
1. Good break-out distance
above previous high. A
1
2. Bar closed
above
1. Decent break-
out distance but A
shorter than the
first
2. Bar close
1. Similar break-out
distance with the
B below resistance
previous tested high 1
A
1
3. Strongest tested
low that cleared
support
2. Similarly weak
tested lows
3. Broke above last higher high; tested pivot becomes valid
1. Basic pivot
2. Turning point
where bearish
momentum took 3. Tested lows
over with weak
momentum
4
1
1. Upwards
slopping trend
line broken here
3. Congestion between
two trend lines
2. Trend line
support
3. Trend resumed
2. Support again
3. Congestion between
two trend lines
Trend line
bounce
2. Recent bull
trend line
Recent bear trend line 2. Negligible
momentum breaking
bear trend line
1. Strong momentum
breaking bull trend line
Recent bear trend line 2. But price
rose up instead
1. Solid bullish
momentum
1. Bullish bias
confirmed here
Valid low
3. Bullish
momentum fading
4. Bearish momentum
returning
Completely within
the range of the
preceding bar
Bar range
Inside Bar
Closed within range;
possible congestion
Bar range
1. Congestion
started here 2. Congestion
confirmed here
3. Bullish break-
out that failed
1. Clear bearish
momentum leading
to trend line break
2. Three-bar congestion
1. Bear trend 3. Congestion started
line broken after retest of trend line
4. Bearish break-out
2. Bull trend line drawn failed with bullish
with this new valid low inside bar
2. Pressure Zone
and Deceleration
4. Congestion Break-
out Failure setup bar
3. Congestion
at the top of
the trend
5. Congestion
Break-out Failure
2. None of the tested lows with trend line test
showed momentum
3. Congestion Break-
out Failure resisted by
the earlier congestion
Earlier congestion
1. Strong show of
momentum by the bears
below the bull trend line
2. Six-bar
congestion
1. Three-bar 4. Traders who caught the
congestion break-out place break-even
stops here to cover
Highest
close
Lowest close
Merged Congestion Zone
Small gap in between the
two congestion patterns
1. This bar clears above
the Zone, and the Zone
becomes a support.
Three-bar
congestion 3. Place sell stop order
1. This bar clears below this bearish bar
below the Zone
2. Then, price clears
above the Zone, and
the Zone is no longer a
valid resistance.
3. Good bullish
2. First test of momentum
zone had strong persisting
bullish momentum
B C 3. Setup bar
1 1
1. A smaller
congestion zone
2. Display of bearish
momentum below trend
line confirmed bias change
1. Original bullish
market bias
3. First Congestion Zone setup
1. Overlapping
Congestion Zones
1. Overlapping
Congestion Zones
5. Short Congestion
Zone setup
1. Bearish
momentum
3. Overlapping
Congestion Zones
4. Clear breakaway
from Congestion Zone
Body takes up
more than half
the candlestick.
Body is less than
half the candlestick.
1. Bullish momentum
rising above trend line
3. Congestion area
acting as resistance
2. Bear trend line
drawn with new valid
high; change of bias
1. Firm bearish
momentum
A
1
Limit Line
A>B>C
2. Setup bar
(not triggered)
Limit Line
4. Setup bar
3. Decelerating as the
market returned to test
the Congestion Zone
1. Strong five-bar thrust
to test the trend line
2. Second down
thrust formed a
Deceleration pattern
4. Bullish momentum
with Deceleration
4. Bullish
pressure
zone
3. Anti-climax supported
2. First valid low by trend line and the
of the session Congestion Zone
1. Extremely
strong break of
a bull trend line
4. Anti-climax
setup bar
2. First sign of
bullish momentum
3. Bearish momentum
took back the control
immediately
1. Strong break of
bull trend line
3. Could not close above
the last basic high
4. Second try to
move above the
resistance ended with
a bearish outside bar
2. Five-bar up
thrust ending with
an Anti-climax 5. Bullish Anti-climax
as a possible exit
1. Shorted here 3. Market shot up after
the bullish Anti-climax
2. Covered at this
price after a
bullish Anti-climax
1. Price has gapped far
above the bull trend line
1. Sold here
2. Bought here
4. Bought here
3. Sold here
Selling
pressure
Buying
pressure
Pressure
Zone
Only 1 tick
Not a reliable
Pressure Zone
2. Place a buy
stop order here
3. If price clears
below this line, the
1. Bullish setup is invalid.
Pressure Zone
1. Seventh consecutive
bullish bar
4. Bullish
Pressure Zone
3. Congestion
2. Weak tested low Zone
First bar of 3. Bullish setup bar
this session rejected from Pressure
Zone and bull trend line
1. Congestion
Zone from
previous
session
3. Bearish Deceleration
and Pressure Zone
2. Bullish Anti-climax setup bar
and Pressure Zone
4. Crude oil
inventory report
released here
2. First bearish Pressure
Zone with outside bar as 3. Second Pressure
setup bar Zone (resistance from
Congestion Zone)
1. Rejection from
broken bull trend line
confirmed bearish bias
2. Bearish
Pressure Zone
3. Setup bar
1. Bullish
market bias
Stop-loss
Entry
Anxiety Zone
2. The break of its high
was the nudge that
tipped the balance.
1. Bearish
Anti-climax
1. Bullish
Anti-climax
Anxiety Zone
Anxiety Zone
5. Bearish
setup bar in
Anxiety Zone
4. Bullish 6. Second
Anxiety Zone setup bar
triggered
1. Bearish
Anti-climax
4. Bullish
setup bar
Congestion Zones
1. Bullish
Anti-climax
2. Limit line
3. Bullish setup bar
implied bullish bias here
3. Limit line of
Bullish Anti-climax
1. Original 4. This bar signalled
bullish bias the failure of both
long setups.
1. Price has moved
far below the bear
4. Ignored two
trend line.
bearish Decelerations
5. Failure of 6. Long
the 1st Congestion
3. Signalled bearish Break-out
2. Bullish success of bullish Deceleration Failure Setup
Deceleration Deceleration
3. Failed bearish
Pressure Zone
2. Bullish Congestion
Break-out Failure setup
1. The bearish Anti-climax
referred to in Figure 10-9
2. Turned out to
be the beginning
of a down trend
3. Successful bearish
Pressure Zone
1. Pushed below
last swing low
with momentum
2. Failed bullish
Deceleration
4. This bar cleared above the
1. Bearish setup bar, indicating a setup
Pressure failure that prevented re-entry.
Zone
2. Bearish bar
as setup bar
3. Projected from
2. Long setup bar the high of the
long setup bar
1. Bullish
Pressure Zone 5. Do not look for re-entry
after stop-loss was hit
2. Original
setup bar
5. Re-entry setup
bar (bullish bar)
3. Low of original
setup bar
1. Four-bar Deceleration
4. Clear buying pressure
that ended with a bullish
Pressure Zone
1. Short Congestion
Break-out Failure setup 3. Stopped out
with bearish Deceleration by the entry bar
5. More possible
re-entries
4. Re-entry setup
2. Original bar (bearish bar)
setup bar
2. Original setup bar
(skipped)
4. Re-entry
setup bar
1. Broke above trend
line and made a basic
low above the trend line
Original entry
st
1 re-entry
Stopped out
nd
2 re-entry
Stopped out
rd
3 re-entry
And so on…
Market Bias Problem
Setups that did not
reach our targets
Horizontal shape
1. Congestion Zone projected from a five-bar congestion pattern
5. Highly
probable target
3. Massive
congestion
3. Bearish
Deceleration?
20 ticks
Entry price
10 ticks
Stop-loss (66.6%)
Positive Expectancy
Negative Expectancy
2. Stop-loss order almost hit
3. Bearish
Pressure Zone
4. Trailed
stop-loss here
1. Bearish Congestion
Break-out Failure;
shorted here
D
1
1. Closing above bullish
wide range bars
C
1
B
A 1 3. When price closes
D
1 above these bars, the
1
stop-loss can be
C adjusted higher again
B 1
1
2. And their corresponding
trailing stop-loss level
A
1
1. First trail
A
3. Choose the tightest
1 stop-loss option
B
1
A
1
B
2. This bar was the first close 1
below four bearish wide range bar
1. Bearish
Anti-climax in
a bull trend
2. Bought here
1. Long Congestion
Break-out Failure
2. The market
continued to rise.
1. We exited here.
1. Short Pressure
Zone setup bar
4. Low of
previous session 2. Previous
extreme low
3. Project the
same distance
3. Bullish Anti-climax
2. Starting point of
last bull trend line 1. Shorted here
Tested low
Valid low
3. Bullish Anti-climax was the
second test of the valid low
1. The same short
Congestion Zone setup
2. Last
extreme high
4. Another bullish
Pressure Zone
1. Bullish
Anti-climax
Tested pivot high
3. Target projected
from four-bar thrust
2. Target projected
from three-bar thrust
1. Bullish
Anti-climax
4. Four major
resistance
areas above
1. Long Pressure
Zone setup bar
4. Price reversed right
below the lowest resistance
1. Long Pressure
Zone setup bar
2. There was a 40% chance that
the market will reach this target
before hitting our stop-loss order.
4. Target was above
the R2R projection
3. R2R projected
minimum target
2. Bearish
Pressure Zone
3. Confluence of support
from Congestion Zone
1. Three-bar
and bull trend line
congestion pattern
4. Target projected from bullish thrust
1. High of session
2. Minimum required
target level
1. Setup bar
1. With this valid high
from last session, we 4. But there was no
drew this bear trend line bullish momentum
First up bar
Support from
last swing low
1. Congestion
Zone
1. Short
setup bar
2. Projected target
with first thrust
4. Second projected target
within Congestion Zone
1. Setup bar
2. Minimum required
target level
4. Breakeven
stop hit
3. Congestion around
low of last session
3. Re-entry setup
bar (not triggered)
1. Short
setup bar
3. Instead of falling,
the market formed a
bullish Pressure Zone.
1. A successful long
Trend Bar Failure setup
2. Congestion Zone 1. Target projected from
from the previous the five-bar bull thrust
session
1. Setup bar
3. Target hit
2. First bar of
current session