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2 PRICE PATTERNS

TAREK AMYUNI3 A PATTERN RARELY CHANGES WITHOUT HECTIC SIDEWAYS TRADING THIS IS WHAT WE'LL EXAMINE TODAY

TAREK AMYUNI4 THE PATTERN THAT MOST CLEARLY DEMONSTRATES THE TEMPORARY BALANCE BETWEEN BUYERS AND SELLERS IN THE TRANSITION PERIODS IS CALLED THE : RECTANGLE

TAREK AMYUNI5 RESISTANCE SUPPORT SELLERS OUTWEIGHT BUYERS BUYERS OUTWEIGHT SELLERS TREND REVERSAL OCCURS HERE

TAREK AMYUNI6 …WHEN WE DISCOVER WHO WON THE BATTLE BETWEEN THE BUYERS AND THE SELLERS

TAREK AMYUNI7 PRICE FORMATION COULD HAVE GONE THE OTHER WAY,THAT IS ON THE UPSIDE…..

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9 A TREND IS ASSUMED TO BE IN EXISTENCE UNTIL THE WEIGHT OF THE EVIDENCE SHOWS OR PROVES IT HAS BEEN REVERSED.

TAREK AMYUNI10 TRANSFER OF SECURITIES FROM KNOWLEDGABLE HOLDERS TO WEAK ONES TRANSFER OF SECURITIES FROM WEAK UNINFORMED INVESTORS TO MORE SAVY INVESTORS

TAREK AMYUNI11 4 BASIC PRINCIPLES OF PATTERN INTERPRETATION

TAREK AMYUNI12 4 BASIC PRINCIPLES OF PATTERN INTERPRETATION HEAD AND SHOULDER FORMATION DOUBLE TOP AND BOTTOMS BROADENING FORMATIONS TRIANGLES

TAREK AMYUNI13 PRICE PATTERNS GET THEIR SIGNIFICANCE FROM THEIR SIZE AND DEPTH THE LARGER THE PATTERN, THE GREATER THE RULE IS : THE LARGER THE PATTERN, THE GREATER IS ITS SIGNIFICANCE IS ITS SIGNIFICANCE PATTERNS ARE A BATTLEGOUND BETWEEN BUYERS AND SELLERS

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TAREK AMYUNI16 IT'S IMPORTANT TO TRY TO RECOGNIZE THE TYPE OF TREND (ST or LT) BEEING REVERSED TECHNICAL ANALYSIS IS CONCERNED WITH IDENTIFYING TREND CHANGES AT A RELATIVELY EARLY STAGE THE PRINCIPLE IS TO MEASURE ITS MAXIMUM DEPTH AND PROJECT THIS DISTANCE FROM THE BREAKOUT POINT

TAREK AMYUNI17 RETRACEMENT MOVE

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TAREK AMYUNI19 Technical analysis can lead to surprises and is no exact science !

TAREK AMYUNI20 TECHNICAL ANALYSIS IS FAR FROM… (FALSE BREAKOUT) PERFECT

TAREK AMYUNI21 THE 3% RULE CAN BE USED TO AVOID FALSE BREAKOUTS

TAREK AMYUNI22 VOLUME ANALYSIS

TAREK AMYUNI23 VOLUME GOES WITH THE TREND

TAREK AMYUNI24 VOLUME GOING WITH THE TREND = BULLISH !

TAREK AMYUNI25 VOLUME GOING AGAINST THE TREND = BEARISH WARNING !!!

TAREK AMYUNI26 VOLUME TENDS TO DECREASE TOWARDS THE END OF THE RECTANGLE BEFORE THE WINNER OF THE BATTLE DECLARES ITSELF

TAREK AMYUNI27 GUESS WHO'S THE WINNER ?

TAREK AMYUNI28 BREAKOUT WITH SMALL VOLUME IS SUSPICIOUS AS ENTHUSIASM IS NOT THERE… BREAKOUT WITH SMALL VOLUME IS SUSPICIOUS AS THERE IS NO ENTHUSIASM… READY TO BREAK ON THE UPSIDE… WEAK VOLUME !

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TAREK AMYUNI30 GREATER ENTHUSIASM FROM SELLERS AS VOLUME INCREASES !

TAREK AMYUNI31 4 BASIC PRINCIPLES OF PATTERN INTERPRETATION

TAREK AMYUNI32 HEAD & SHOULDERS HEAD AND SHOULDERS IS ONE OF THE MOST COMMON OF THE VARIOUS PRICE PATTERNS

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TAREK AMYUNI34 REMEMBER THE PEAK AND THROUGH FORMATION !

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TAREK AMYUNI36 VOLUME ON THE LEFT SHOULDER AND HEAD SHOULD ALWAYS BE HIGHER THAN VOLUME ON THE RIGHT SHOULDER

TAREK AMYUNI37 HORIZONTAL NECKLINE

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TAREK AMYUNI39 TRANSVERSAL NECKLINE

TAREK AMYUNI40 THE BREAK OF SUPPORT SIGNAL IS NOT THAT STRONG AS THE THROUGH IS NOT VIOLATED.

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TAREK AMYUNI42 MULTIPLE H&S FORMATIONS LEAD TO A LARGER DOWN MOVE BELOW THE NECKLINE.

TAREK AMYUNI43 H&S FORMATION ALSO OCCUR AT MARKET BOTTOM

TAREK AMYUNI44 SELLING CLIMAX WITH HIGH VOLUME INDICATES THAT THE TREND IS CLOSE TO REVERSING.

TAREK AMYUNI45 THE BREAKOUT DISTANCE IS EQUIVALENT TO THE DISTANCE BETWEEN THE HEAD AND THE NECKLINE.

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TAREK AMYUNI47 MARKET BOTTOMS CAN OCCUR WITH DOWNWARD SLOPING OR UPWARD SLOPING HEAD AND SHOULDER FORMATIONS

TAREK AMYUNI48 H&S FORMATIONS CAN OCCUT DURING CONSOLIDATION PHASES MEASURING PRINCIPLES ARE THE SAME.

TAREK AMYUNI49 WHY IS VOLUME EXPLODING ON THE RIGHT HAND SHOULDER ? (COMPARE WITH SLIDE #42)…WHAT IS THE DIFFERENCE ?

TAREK AMYUNI50 SOMETIMES A H&S FORMATION APPEARS TO BE FORMING, BUT WHEN IT REACHES THE NECKLINE…

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TAREK AMYUNI52 DOUBLE TOPS AND BOTTOMS

TAREK AMYUNI53 A DOUBLE TOP CONSISTS OF 2 PEAKS AND ONE VALLEY.

TAREK AMYUNI54 SECOND PEAK IS ASSOCIATED WITH MUCH LESS VOLUME THAN THE FIRST, INDICATING DISINTEREST.

TAREK AMYUNI55 SELLERS HAVE TAKEN OVER BUYERS !!!

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TAREK AMYUNI57 JUST AS THE H&S FORMATION, THE DISTANCE OF THE BREAKOUT IS EQUAL TO THE DISTANCE BETWEEN THE PEAK AND THE VALLEY.

TAREK AMYUNI58 DOUBLE BOTTOMS IS THE MIRROR IMAGE OF A DOUBLE TOP WITH ONE EXCEPTION :

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TAREK AMYUNI61 THE SECOND BOTTOM MUST SHOW LOW VOLUME FOR THE BREAKOUT ON THE UPSIDE TO OCCUR.

TAREK AMYUNI62 NOTICE HOW THE VOLUME IS NOT DECREASING BEFORE WE GET TO THE FINAL TOP.

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TAREK AMYUNI64 BROADENING FORMATIONS

TAREK AMYUNI65 NOT A DOUBLE TOP, NOT A H&S FORMATION, SO WHAT IS IT ?

TAREK AMYUNI66 RARE FORMATION AND USUALLY SEEN AT MARKET TOP AND BOTTOMS.

TAREK AMYUNI67 THE WIDENING TRADING BAND IS A SIGN OF A VERY UNSTABLE EMOTIONAL SITUATION.

TAREK AMYUNI68 2 DIVERGENT LINES CAN BE DRAWN ON SUCH A FORMATION

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TAREK AMYUNI71 STRONG DOWNWARD MOVE WHEN PRICE MOVES BELOW THE FLAT BOTTOM : STRONG ADVICE TO GET OUT OF YOUR LONG POSITION !!!

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TAREK AMYUNI73 VOLUME IS KEY WHEN IT BRAKES THROUGH THE HORIZONTAL LINE

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TAREK AMYUNI75 TRIANGLES

TAREK AMYUNI76 TRIANGLES COME IN 2 VARIETY : SYMMETRICAL RIGHT ANGLED

TAREK AMYUNI77 SYMMETRICAL TRIANGLE

TAREK AMYUNI78 APEX TRIANGLES SEEM TO WORK BEST WHEN THE BREAKOUT OCCURS SOMEWHERE BETWEEN ½ AND ¾ OF THE DISTANCE BETWEEN THE WIDEST PEAK AND RALLY AND THE APEX.

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TAREK AMYUNI81 VOLUME DECREASES EVERYTIME WE ARE IN A SYMMETRIC TRIANGLE

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TAREK AMYUNI83 RIGHT ANGLED TRIANGLE

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TAREK AMYUNI89 NOW LET’S GET TO WORK !