1. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 1 Double Top with Breakout Down Entry Breakout Pullback Kirkpatrick & Dahlquist Chart 15.3

2. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 2 Rectangle with Entry Up and Breakout Up Entry Breakout Throwback Kirkpatrick & Dahlquist Chart 15.4 Shortfall

3. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 3 Triple Top with Breakout Down Entry Breakout Pullback Kirkpatrick & Dahlquist Chart 15.5

4. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 4 Triple Bottom with Breakout Up Entry Breakout Throwback Kirkpatrick & Dahlquist Chart 15.6

5. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 5 Descending Triangle with Breakout Down Entry Breakout Pullback Kirkpatrick & Dahlquist Chart 15.7

6. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 6 Descending Triangle with Breakout Up Entry Breakout Throwback Kirkpatrick & Dahlquist Chart 15.8

7. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 7 Ascending Triangle with Breakout Down Kirkpatrick & Dahlquist Chart 15.9 Entry Breakout Pullback

8. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 8 Kirkpatrick & Dahlquist Chart 15.10 Symmetrical Triangle with Breakout Up Entry Breakout Cradle Throwback

9. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 9 Kirkpatrick & Dahlquist Chart 15.11 Broadening Formation with Breakout Up Entry Breakout Throwback

10. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 10 Diamond Pattern with Breakout Down Kirkpatrick & Dahlquist Chart 15.12 EntryBreakout Pullback

11. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 11 Rising Wedge with Breakout Down from a Climax Peak Kirkpatrick & Dahlquist Chart 15.13 Entry Breakout Climax PeakPullback

12. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 12 Kirkpatrick & Dahlquist Chart 15.14 Declining Wedge with Breakout Up from Climax Trough Entry Breakout Climax Trough (Panic) Throwback

13. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 13 Kirkpatrick & Dahlquist Chart 15.15 Cup or Bowl and Handle Variety of a Rounding Bottom with Breakout Up Entry Breakout Handle Throwback

14. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 14 Kirkpatrick & Dahlquist Chart 15.16 Head and Shoulders Top with Breakout Down Entry Breakout Pullback Right Shoulder Head Left Shoulder

15. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 15 Head and Shoulders Bottom with Breakout Up Entry Breakout Throwback Right Shoulder Left Shoulder Kirkpatrick & Dahlquist Chart 15.17 Head

16. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 16 Flag and Pennant in Upward Trend Kirkpatrick & Dahlquist Chart 15.18 FlagPennant

17. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 17 Consolidation Area with Most of Price Action at Lower Level, suggesting breakout will be to the upside Kirkpatrick & Dahlquist Chart 16.1

18. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 18 Symmetrical Triangle with Upward Breakout Kirkpatrick & Dahlquist Chart 16.2 One-Box Reversal Chart with a Triangle

19. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 19 Determining the “Count” in a Consolidation Area by using the price at which the most number of squares are filled Kirkpatrick & Dahlquist Chart 16.4

20. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 20 Target Determined by Rotating Count Around the Right-Hand Edge in the Direction of the Breakout Kirkpatrick & Dahlquist Chart 16.5

21. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 21 Fulcrum Bottom Kirkpatrick & Dahlquist Chart 16.7

22. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 22 Trend Lines Kirkpatrick & Dahlquist Chart 16.8

23. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 23 Horizontal Count Kirkpatrick & Dahlquist Chart 16.9 (3 x total width of base in boxes (5) x price/box (1/2)) + lowest price in formation (15) = price target (23) X3 H

24. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 24 Double Top and Double Bottom Kirkpatrick & Dahlquist Chart 16.11 Buy Sell Double TopDouble Bottom

25. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 25 Rising Bottom and Declining Top Kirkpatrick & Dahlquist Chart 16.12 Rising BottomDeclining Top Buy Sell

26. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 26 Kirkpatrick & Dahlquist Chart 16.13 Breakout of Triple Top Breakout of Triple Bottom Buy Sell Triple Top and Triple Bottom Breakouts

27. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 27 Kirkpatrick & Dahlquist Chart 16.14 Ascending Triple Top Descending Triple Bottom Ascending Triple Top and Descending Triple Bottom Buy Sell

28. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 28 Spread Triple Top and Spread Triple Bottom Kirkpatrick & Dahlquist Chart 16.15 Buy Sell Spread Triple TopSpread Triple Bottom

29. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 29 Upward Breakout of Bullish Triangle Downward Breakout of Bullish Triangle Bullish and Bearish Triangles Kirkpatrick & Dahlquist Chart 16.16 Buy Sell

30. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 30 Breakouts from Resistance and Support Lines Kirkpatrick & Dahlquist Chart 16.17 Upward Breakout Above a Resistance Line Downward Breakout of a Support Line Buy Sell

31. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 31 Upward Breakout Above a Resistance Line Breakouts from Resistance and Support Lines Kirkpatrick & Dahlquist Chart 16.18 Buy Sell Downward Breakout of a Support Line

32. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 32 Bullish Catapult Bullish and Bearish Catapults Kirkpatrick & Dahlquist Chart 16.19 Buy Bearish Catapult Stop Buy Half Stop Sell Sell Half

33. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 33 Spike Pattern or Long Tail Download Kirkpatrick & Dahlquist Chart 16.20 Buy

34. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 34 Buy Strong Upward Trend in Bull Market False Breakdown from Double Bottom Shakeout Pattern Kirkpatrick & Dahlquist Chart 16.21

35. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 35 A Gap Down Kirkpatrick & Dahlquist Chart 17.1 Gap Down

36. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 36 Explosion Gap Pivot Kirkpatrick & Dahlquist Chart 17.2 Entry Buy Stop Breakaway Gap (New High for 20 Days) Pivot Low Protective Stop

37. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 37 Opening Down Gap Kirkpatrick & Dahlquist Chart 17.3 Opening Down Gap (Later filled during day)

38. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 38 Dead Cat Bounce April - October 1993 Kirkpatrick & Dahlquist Chart 17.6 StockCharts.com Apple Computer Dead Cat Bounce Daily

39. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 39 Inside Bar Kirkpatrick & Dahlquist Chart 17.9 Buy Next Bar at Opening Above Inside Bar Close Sell Next Bar at Opening Below Inside Bar Close

40. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 40 Inside Bar with Higher Close Kirkpatrick & Dahlquist Chart 17.10 Buy Next Bar at Opening Above Inside Bar Close

41. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 41 Hikkake Buy Failure Kirkpatrick & Dahlquist Chart 17.12 Buy (Conventional) Inside Bar Failure (Hikkake Sell)

42. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 42 Landry KO Pattern - Nikkei 225 Index June - September 2005 Kirkpatrick & Dahlquist Chart 17.13 Strong Upward Trend Bars Hug Close to Center Line Stop Levels Buy Points after 2 Days of Lower Lows Source: TradeStation

43. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 43 Shark Pattern with Break to the Upside Kirkpatrick & Dahlquist Chart 17.15 Buy Wide Base Symmetry Apex

44. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 44 Narrow-Range Bar Kirkpatrick & Dahlquist Chart 17.16 Buy Sell NR4 Range on Bar 4 Less than Bars 1-3

45. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 45 Harami Candlestick Pattern Kirkpatrick & Dahlquist Chart 17.20 Spinning Top Can Be Black or White

46. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 46 Inside Down and Inside Up Candlestick Patterns Kirkpatrick & Dahlquist Chart 17.27 Inside Down (Up)Inside Up (Bottom)

47. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 47 Hanging Man and Hammer Kirkpatrick & Dahlquist Chart 17.21 Either Can Be Black or White Hanging ManHammer

48. MTA Educational Foundation University Course – Technical Analysis of the Financial Markets ©2007 Lecture 4 - Pattern Recognition This lecture series is produced by the Market Technicians Association Educational Foundation based on the detailed class notes of Charles D. Kirkpatrick II, CMT Copyright © 2007. All rights are reserved. 48 Evening Star and Morning Star Candlestick Patterns Kirkpatrick & Dahlquist Chart 17.25 Spinning Top Can Be Black or White Evening Star (top)Morning Star (bottom)