1. PRICE PATTERNS FOR TRADERS
FLAGS
PENNANTS
WEDGES
SAUCERS AND ROUDING TOPS
KEY REVERSAL DAYS
GAPS

2. IN THIS SESSION, WE WILL TAKE A LOOK AT SOME PRICE CONFIGURATION
THAT, FOR THE MOST PART, DEVELOP DURING A TREND
THESE FORMATIONS GENERALLY TAKE FAR LESS TIME TO COMPLETE, AND AS
A RESULT, ARE ONLY OF VERY SHORT-TERM SIGNIFCANCE

3. <3 WEEKS TO DEVELOP
RECTANGLE FORMATION

4. VOLUME SHRINKS TO NOTHING BY THE TIME IT'S READY TO BREAK OUT

6. FLAGS REPRESENT A SHORT-TERM PERIOD OF PROFIT TAKING
FLAGS ARE RECOGNIZED BY A RELATIVELY HIGH MASTSHOWN BY THE
BLUE ARROW

7. THE FLAG APPEARS USUALLY HALFWAY OF THE RALLY…

8. NOTICE THE INCREASE IN VOLUME AS THE FORMATION BREAKS OUT

9. FLAGS ARE A CONTROLLED PERIOD OF PROFIT TAKING, OR LOSS
CONSOLIDATION IN DECLINING MARKETS.
HEAVY VOLUME AND/OR LENGTHY FORMATION PERIODS ARE NOT
REPRESENTATIVE OF THAT.

10. PENNANTS ARE JUST LIKE TRIANGLES, WITH 2 CONVERGING LINES
MOVING IN DIFFERENT DIRECTIONS : ONE UP AND THE OTHER DOWN.
<3 WEEKS TO COMPLETE SO THEY NEVER APPEAR ON WEEKLY OR
MONTHLY CHARTS BUT RATHER DAILY CHARTS

11. VOLUME DECREASES AS THE PENNANT PROGRESSES

12. WEDGES ARE TRIANGLES AND DO NOT LAST MORE THAN 3 WEEKS
NEITHER.

13. SHRINKING VOLUME AS THE WEDGE PROGRESSES

14. CONSTRUCTED WITH 2 CONVERGING LINES THAT ARE MOVING IN THE
SAME DIRECTION

15. NICE SMILE !

19. A KEY REVERSAL DAY OCCURS AFTER A LONG MOVE, LASTING MANY DAYS
OR SEVERAL WEEKS
THE KEY REVERSAL DAY IS, IN EFFECT A 1-DAY PRICE PATTERN
THAT SEPARATES WHAT ARE NORMALLY 2 SHARP PRICE MOVES.

29. QUITE COMMON IN THE DAILY CHARTS ESPECIALLY
IN THE FUTURES MARKET

30. TRADING RANGE IS BIGGER THAN THE PRECEEDING DAY

31. IMPORTANT FOR THE NEW TREND TO BE IN THE OPPOSITE DIRECTION
OF THE PREVIOUS TRADING RANGE

32. IT CLOSES IN THE OPPOSITE DIRECTION (i.e down)
IT HAS A BIGGER TRADING RANGE (higher high and lower low)

33. THESE 1-DAY TREND PATTERNS USUALLY HAVE A SHORT TERM
EFFECT OF DAY MINIMUM TO DAYS MAXIMUM.
EXCELLENT ENTRY AND EXIT POINTS FOR SHORT TERM TRADERS
VOLUME DOES NOT ALWAYS EXPAND ON OUTSIDE DAYS, BUT AGAIN,
IF IT DOES, IT OFFERS STRONG SUPPORTING EVIDENCE IN A CHANGE
IN SENTIMENTS BETWEN BUYERS AND SELLERS

34. VERY EMOTIONAL BEHAVIOR WHERE INVESTORS ARE WILLING
TO PAY A MUCH HIGHER (OR SELL AT MUCH LOWER) PRICES FOR A
SECURITY

38. TRADERS LOVE USING GAPS TO ENTER A POSITION OR USE IT AS A
SUPPORT.

40. GAP
DOUBLE BOTTOM
ISLAND REVERSAL