TOPIC 5. CHART PATTERN ANALYSIS.

Transcription

1 TOPIC 5. CHART PATTERN ANALYSIS. CMT Level II Exam Topics, Learning Objectives and Question Weightings Exam Weights Exam Questions CMT Level II Exam Questions 15.3% 23 Financer Training Practice Questions 15.3% 161 Chapter 1 Charting Added in 2016 Perry J. Kaufman, Trading Systems and Methods, 5 th edition (Hoboken, New Jersey: John Wiley & Sons, 2013), Chapter 3 All sections included Chapter 18 Understanding Chart Pattern Breaks Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 All sections included Chapter 19 Triangles, Pennants, and Flags Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 All sections included Chapter 20 Tops and Bottoms Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters All sections included Chapter 21 Head-and-Shoulders Patterns Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters All sections included Alexey De La Loma FINANCER TRAINING Pag. 143/419

2 CMT II Questions. A/an gap appears at the end of a trend: a) Area b) Runaway c) Breakaway d) Exhaustion. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters A runaway gap is often found: a) At the end of a significant move. b) In the middle of a significant move. c) At the beginning of a significant move. d) After the announcement of a surprising but rumored news release. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Identify the gap highlighted in the chart below: 3 a) Exhaustion. b) Breakaway. c) Measuring. d) Area. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 Pag. 144/419 FINANCER TRAINING Alexey De La Loma

3 From a chart pattern perspective, price breaks out in a throwback and in a pullback: a) Upward, upward. b) Upward, downward. c) Downward, upward. d) Downward, downward. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Identify the chart pattern highlighted below: 5 a) Descending triangle. b) Double top. c) Triple top. d) Rectangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 When referring to trend lengths, a primary trend normally lasts: a) For three weeks. b) Three weeks to three months. c) Between three and six months. d) Longer than six months. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Alexey De La Loma FINANCER TRAINING Pag. 145/419

4 CMT II The price velocity leading to and exiting from a chart pattern are: a) Similar even if direction is reversed b) Similar if direction remains the same c) Different based on the duration of the chart pattern d) Defined based on the type of chart pattern (reversal, continuation etc.). Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Market tops have price trending into a chart pattern from, while/and market bottoms have price trending out of a chart pattern from. a) Above, below. b) Below, above. c) Above, above. d) Below, below. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Identify the chart pattern highlighted below: 9 a) Descending triangle. b) Double top. c) Triple top. d) Rectangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 Pag. 146/419 FINANCER TRAINING Alexey De La Loma

5 Increasing supply at lower prices coupled with demand at a constant price results into the formation of a/an: a) Rectangle. b) Ascending triangle. c) Descending triangle. d) Symmetrical triangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters A flag is generally formed by a in a bull market or a in a bear market: a) Rally, pullback. b) Rally, correction. c) Correction, rally. d) Correction, throwback. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Pennants typically take less than weeks to form: a) Two b) Three c) Four d) Six. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters What is the measuring objective for flags and pennants? a) The move after the pattern will be equal to the move before the pattern. b) No objective as flags and pennants normally occur near the end of major price moves. c) Flags fly at half-mast while pennants are considered reversal patterns. d) Half the distance of the preceding move added to the breakout point. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters A double bottom pattern is confirmed only: a) If the time between two bottoms is at least three months. b) If volume is higher on the second bottom than the first. c) If both the bottoms are exactly at the same price (within 1%). d) When price exceeds the highest peak between both the bottoms. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Alexey De La Loma FINANCER TRAINING Pag. 147/419

6 CMT II If the middle trough of an alleged triple bottom pattern is significantly (greater than 5%) below the other two, then: a) Additional volume confirmation maybe required to confirm the pattern on a breakout. b) There is a high likelihood of a long-term base building process that might unfold. c) A 3% filter should be used to confirm the breakout above overhead resistance. d) It is probably a head & shoulders bottom. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters When identifying a potential double top pattern, one needs to ensure that the two peaks are within of each other: a) 1%. b) 3%. c) 4%. d) 5%. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Which of the following chart patterns is categorized as a major reversal formation? a) Flag. b) Pennant. c) Head & Shoulders. d) Symmetrical Triangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters In a triple top pattern, peaks are separated by valleys: a) Two, two. b) Three, two. c) Two, three. d) Three, three. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Pag. 148/419 FINANCER TRAINING Alexey De La Loma

7 19 Identify the chart pattern highlighted below: a) Triple bottom. b) Double bottom. c) Ascending triangle. d) Inverse Head & Shoulders. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters In this NASDAQ Index monthly bar chart we have plotted the letter A to illustrate a. 20 a) Key reversal day. b) Inside day. c) Double top. d) Outside day. Alexey De La Loma FINANCER TRAINING Pag. 149/419

8 CMT II In this weekly bar chart of GAP. The closing price of the bar illustrated with letter A represents: 21 a) The closing price of any Friday during the month. b) The last price of the month. c) The closing price of the last Friday of the month. d) None of the above. Where will you set the main resistance line in this bar chart of Burlington Resources? 22 a) b) c) d) None of the above. Pag. 150/419 FINANCER TRAINING Alexey De La Loma

9 In this chart we can see a monthly bar chart of Citigroup. Mark the correct statement. a) The current trend is still bullish and there are no signs of exhaustion. b) Citigroup is at the end of a prolonged bearish trend. c) There is no clear trend in this chart. d) Price has violated a relevant bullish trendline. e) Price is still making new highs and new lows. 23 Alexey De La Loma FINANCER TRAINING Pag. 151/419

10 CMT II In this chart we can see a monthly bar chart of Microsoft. There are three trendlines marked with letters A, B, and C. a) A represents a long-term bullish trend, B represents a mid-term bearish trend, and C represents a short-term bearish trend. b) A represents a long-term bullish trend, B represents a mid-term bullish trend, and C represents a short-term bearish trend. c) The stock is still in a clear long-term trend. d) All of the above are true. e) B and C. 24 Pag. 152/419 FINANCER TRAINING Alexey De La Loma

11 25 In this chart we can see a daily bar chart of Microsoft. Can you identify any chart pattern? a) Head and Shoulders. b) Inverted Head and Shoulders. c) Triple top. d) Triple bottom. Alexey De La Loma FINANCER TRAINING Pag. 153/419

12 CMT II In this chart the minimum profit target of a reversal chart pattern can be established at : a) b) c) 23. d) None of the above. 26 Pag. 154/419 FINANCER TRAINING Alexey De La Loma

13 27 In this chart there is a clear chart pattern appearing above the dotted line. Could you identify it? a) Double top. b) Wedge. c) Inverted Head and Shoulders. d) Head and Shoulders. Alexey De La Loma FINANCER TRAINING Pag. 155/419

14 CMT II In this daily bar chart of Staples there are three horizontal lines representing the following price levels: 24, 21, and 17.5 respectively. Where could we set the minimum price target of a bearish reversal pattern after price confirmation? a) b) 13. c) 11. d) None of the above. 28 Pag. 156/419 FINANCER TRAINING Alexey De La Loma

15 29 In this daily bar chart of Microsoft, there is a clear chart pattern that will be confirmed after a: a) Close below 27.5 b) Close below c) Close above 27.5 d) Close above Alexey De La Loma FINANCER TRAINING Pag. 157/419

16 CMT II In this daily bar chart of Staples, determine the name of the chart pattern that has been signaled with an oval. a) Head and Shoulders. b) Wedge. c) Line in Dow terminology. d) Triple top. e) None of the above. 30 Pag. 158/419 FINANCER TRAINING Alexey De La Loma

17 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 31 Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Inverted Head and Shoulders. b) Double top. c) Flag. d) Symmetrical triangle. e) Ascending triangle. What is the minimum price target of this chart pattern in case of a price confirmation? a) b) c) 1990 d) Alexey De La Loma FINANCER TRAINING Pag. 159/419

18 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Inverted Head and Shoulders. b) Double bottom. c) Flag. d) Symmetrical triangle. e) Ascending triangle. 33 What is the minimum price target of this chart pattern in case of an upside breakout? a) b) c) 1800 d) Pag. 160/419 FINANCER TRAINING Alexey De La Loma

19 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 35 Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Inverted Head and Shoulders. b) Double bottom. c) Flag. d) Symmetrical triangle. e) Ascending triangle. What is the minimum price target of this chart pattern in case of an upside breakout? a) b) c) d) Alexey De La Loma FINANCER TRAINING Pag. 161/419

20 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Inverted Head and Shoulders. b) Double bottom. c) Flag. d) Symmetrical triangle. e) Ascending triangle. 37 What is the minimum price target of this chart pattern in case of an upside breakout? a) b) c) d) Pag. 162/419 FINANCER TRAINING Alexey De La Loma

21 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 39 Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Inverted Head and Shoulders. b) Double bottom. c) Flag. d) Symmetrical triangle. e) Ascending triangle. What is the minimum price movement in case of a chart pattern breakout (price confirmation)? a) 25. b) 75. c) 125. d) Alexey De La Loma FINANCER TRAINING Pag. 163/419

22 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Head and Shoulders. b) Double top. c) Wedge. d) Rectangle. e) Descending triangle. 41 What is the minimum price target in case of a breakout (price confirmation) from the upper side of the chart pattern? a) 172. b) 174. c) 176. d) Pag. 164/419 FINANCER TRAINING Alexey De La Loma

23 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 43 Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Head and Shoulders. b) Double top. c) Wedge. d) Rectangle. e) Descending triangle. What is the minimum price target according to the breakout induced by price action? a) 141. b) 151. c) 161. d) Alexey De La Loma FINANCER TRAINING Pag. 165/419

24 CMT II This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Head and Shoulders. b) Double top. c) Wedge. d) Rectangle. e) Descending triangle. 45 What will be the price target is price confirms the chart pattern? a) b) c) d) Pag. 166/419 FINANCER TRAINING Alexey De La Loma

25 This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Head and Shoulders. b) Double top. c) Wedge. d) Rectangle. e) Descending triangle. 47 What is the minimum price target of this chart pattern? a) b) c) d) Alexey De La Loma FINANCER TRAINING Pag. 167/419

26 CMT II This chart (Ibex-35 index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Head and Shoulders. b) Double top. c) Wedge. d) Rectangle. e) Descending triangle. 49 What is the minimum price target of this chart pattern? a) b) c) d) Pag. 168/419 FINANCER TRAINING Alexey De La Loma

27 This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. 51 Determine the name of the chart pattern that is developing at the right part of this bar chart. a) Symmetrical triangle. b) Expanding triangle. c) Descending tangle. d) Ascending triangle. What is the traditional configuration of this pattern? a) As a top pattern. b) As a bottom pattern. c) As an intermediate pattern. d) None of the above. 52 Alexey De La Loma FINANCER TRAINING Pag. 169/419

28 CMT II This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern has been confirmed by price action. a) Descending tangle. b) Triple bottom. c) Double bottom. d) None of the above. 53 What is the traditional minimum price target established by this pattern? a) 620 points. b) 1,000 points c) 1,140 points. d) 1,280 points. 54 Pag. 170/419 FINANCER TRAINING Alexey De La Loma

29 This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. 55 Determine the name of the chart pattern has been confirmed by price action. a) Inverted H&S. b) H&S. c) Descending triangle. d) Triple bottom. What is the traditional minimum price target established by this pattern? a) 1,250 points. b) 1,150 points c) 1,350 points. d) 1,050 points. 56 Alexey De La Loma FINANCER TRAINING Pag. 171/419

30 CMT II This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern has been confirmed by price action. a) Descending triangle. b) Triple bottom. c) Triple top. d) Head and shoulders. 57 What is the minimum price target established by this pattern? a) The zone. b) The zone. c) The zone. d) The zone. 58 Pag. 172/419 FINANCER TRAINING Alexey De La Loma

31 This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. Determine the name of the chart pattern has been confirmed by price action. a) Descending triangle. b) Double top. c) Head and shoulders. d) Pennant. 59 What is the minimum price target established by this pattern? a) 1950 points. b) 2050 points. c) 2015 points. d) 2550 points. 60 Alexey De La Loma FINANCER TRAINING Pag. 173/419

32 5.2. Answers. MTA Sample Exam 1 D An exhaustion gap appears at the end of a trend. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 MTA Sample Exam 2 B A runaway gap is often found in the middle of a significant move. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 MTA Sample Exam 3 D It is an area gap. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 MTA Sample Exam 4 B From a chart pattern perspective, price breaks out upward in a throwback and downward in a pullback. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 4-6 MTA Sample Exam 5 D Rectangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 6 D Longer than six months. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 7 A Similar even if direction is reversed. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 8 D Market tops have price trending into a chart pattern from below, while market bottoms have price trending out of a chart pattern from below. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 Alexey De La Loma FINANCER TRAINING Pag. 195/419

33 CMT II MTA Sample Exam 9 D Busted ascending triangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 10 C Descending triangle. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 11 C A flag is generally formed by a correction in a bull market or a rally in a bear market. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 12 B Pennants typically take less than three weeks to form.. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 13 A The move after the pattern will be equal to the move before the pattern. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters 7-11 MTA Sample Exam 14 D A double bottom pattern is confirmed only when price exceeds the highest peak between both the bottoms. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters MTA Sample Exam 15 D It is probably a H&S bottom. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters MTA Sample Exam 16 B 3%. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters MTA Sample Exam 17 C Head and Shoulders. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters Pag. 196/419 FINANCER TRAINING Alexey De La Loma

34 MTA Sample Exam 18 B Three, two. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters MTA Sample Exam 19 D Inverse Head and Shoulders. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters We can eliminate the double top pattern because we are referring to a one-bar pattern. We can also eliminate both inside and outside bar because bar A neither engulfs the previous bar nor it is contained in the previous bar. Therefore, the correct sentence is a Key Reversal Bar. 20 A In a weekly bar, the closing price represents the last price of the week (Friday close if it is a conventional week). 21 A 22 B 23,22 23,10 Alexey De La Loma FINANCER TRAINING Pag. 197/419

35 CMT II As it is clearly shown in this chart, in the last two bars the bullish trendline has been broken with a strong volume. 23 D Trendline A represents a long-term bullish trend, Trendline B represents a mid-term bullish trend, and trendline C represents a short-term bearish trend. 24 E 25 C Pag. 198/419 FINANCER TRAINING Alexey De La Loma

36 26 B Doble techo D Alexey De La Loma FINANCER TRAINING Pag. 199/419

37 CMT II C A 27.5 This is a rectangle or line according to Dow terminology. 30 C Pag. 200/419 FINANCER TRAINING Alexey De La Loma

38 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 31 E This pattern is a clear ascending triangle. According to this chart pattern, the base of the ascending triangle has a measure of 70 points ( ). Therefore, if this chart pattern breaks up, the minimum price target could be established at 1960 ( ). 32 B Alexey De La Loma FINANCER TRAINING Pag. 201/419

39 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. This chart pattern is a flag. 33 C As this chart pattern (flag) runs contrary to the bullish trend of the price. The minimum price target is determined by measuring the previous trend movement ( = 340) which is projected from the lower part of the flat (1560). Keep in mind that flags appear in the middle of a trending movement, so the minimum price target is 1900 points ( ). 34 D Pag. 202/419 FINANCER TRAINING Alexey De La Loma

40 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 35 A This chart pattern is an inverted head and shoulders. In both H&S and inverted H&S, the minimum price target is the distance from the neckline to the head, projected from the neckline in the direction of the breakout. In our example, the distance from the neckline to the head is 90 points ( ), and the profit target is established in 1430 points ( ). 36 A Alexey De La Loma FINANCER TRAINING Pag. 203/419

41 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. This chart pattern is a double bottom. 37 B It is a double bottom. If price actions breaks up the intermediate high standing between both bottoms, the chart pattern is confirmed and the minimum price target is the distance between the bottoms and this intermediate high, projected from the intermediate high. The distance is 55 points ( ) and the profit target is established at 1335 points ( ). 38 B Pag. 204/419 FINANCER TRAINING Alexey De La Loma

42 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 39 D This chart pattern is a symmetrical triangle. It is a symmetrical triangle. In case of a chart pattern confirmation, the minimum distance expected from the breakout point is equivalent to the triangle base. In our example, it is 75 points ( ). 40 B Alexey De La Loma FINANCER TRAINING Pag. 205/419

43 CMT II This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. This chart pattern is a rectangle. 41 D It is rectangle so it can break up or down. In case of an breakout on the upper side of the chart pattern, the minimum price target is the width of the rectangle projected from the breakout point. In our example, the width of the pattern is 8 points ( ), and the profit target is settled at 178 points ( ). 42 D Pag. 206/419 FINANCER TRAINING Alexey De La Loma

44 This chart (S&P 500 index in daily timeframe) is illustrated for the following two questions. 43 E This chart pattern is a descending triangle. It is a descending triangle that is breaking from the upper side. Therefore, the profit target is the base of the triangle (10 points) projected from the breakout point, that is, 161 points ( ). 44 C Alexey De La Loma FINANCER TRAINING Pag. 207/419

45 CMT II This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. This chart pattern is a head and shoulders. 45 A It is a H&S so the chart pattern is confirmed if price breaks down the neckline and the minimum price target is the distance from the head to the neckline, projected from the breakout point. The width of the pattern is 450 points ( ), and the profit target is 1650 points ( ). 46 D Pag. 208/419 FINANCER TRAINING Alexey De La Loma

46 This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. This chart pattern is a double top. 47 B It is a double top, in which prices have broken down the mid low price, so chart pattern is confirmed and the minimum price target is the width of the pattern. The width of the pattern is 700 points ( ), and the profit target is located at 2850 points ( ). 48 A Alexey De La Loma FINANCER TRAINING Pag. 209/419

47 CMT II This chart (Ibex-35 index in daily timeframe) is illustrated for the following two questions. This chart pattern is a wedge. 49 C It is a wedge that appears after a bearish trend. The minimum price target is determined as the previous movement, that is 4,000 points (16,000 12,000), projected from the high level of the wedge, so the price target is 10,300 points ( ,000). 50 C Pag. 210/419 FINANCER TRAINING Alexey De La Loma

48 This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. 51 B This chart pattern is an expanding triangle or broadening formation. Expanding triangles are traditionally considered as top patterns. 52 A Alexey De La Loma FINANCER TRAINING Pag. 211/419

49 CMT II This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. It is a triple bottom that is confirmed when prices break the intermediate high level at 960 points. 53 B Once the triple bottom has been confirmed, we have to project the width of the pattern (180 points), which is the distance from the bottom (780) to the intermediate high level (960), and this distance is projected from the price where the pattern is confirmed, so the price target is 1,140 points ( ). 54 C Pag. 212/419 FINANCER TRAINING Alexey De La Loma

50 This chart (S&P-500 index in daily timeframe) is illustrated for the following two questions. 55 A It is an inverted head and shoulders with a descending neckline. Once the inverted H&S is confirmed, the price target is established at 1,250 points, which is the distance from the head (675) to the neckline (975), projected from the neckline breakout at 950 points. 56 A Alexey De La Loma FINANCER TRAINING Pag. 213/419

51 CMT II This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. It is a triple top. 57 C Once the triple top has been confirmed, the minimum price target established by this pattern is based on the distance from the top to the low intermediate level of the pattern, projected from the breakout point. In our example, the intermediate level is at 2,600 points and the top of the pattern at Therefore, the profit target is in the zone 2,350 2, D Pag. 214/419 FINANCER TRAINING Alexey De La Loma

52 This chart (Nasdaq Composite index in daily timeframe) is illustrated for the following two questions. It is a pennant. 59 D Pennants as flags are considered to be flying at half-mast, as the distance of the initial price movement is thought to be roughly equal to the proceeding price move. In our example, the price target is projected from the confirmation pattern, that is, approximately at 3,200 points. The previous movement is 1,250 points (4,250 3,000), so the price target is established at 1,950 points. 60 A According to Thomas Bulkowski, neither whole numbers nor gaps work well as support or resistance areas. Thomas N. Bulkowski, Visual Guide to Chart Patterns (Hoboken, New Jersey: John Wiley & Sons, 2012), Chapters E Alexey De La Loma FINANCER TRAINING Pag. 215/419