High Probability Candlestick Patterns & Set ups

Transcription

1 High Probability Candlestick Patterns & Set ups

2 Utilize easy mechanical trades that remove the guess-work from trading. Opportunities to profit in Breakout Gaps and how to handle Bad News Gaps. See the difference between healthy profit-taking and a full-scale reversal ahead.

3 Fry Pan bottom patterns Dumpling Top Cradle pattern Jay-hook pattern Scoop pattern Belthold patterns Gaps

4 Fry Pan Bottom The downtrend starts waning with the appearance of small trading bodies. As the trend starts slowly curling up, a gap up in price indicates that strong buying sentiment has now returned.

5 Fry Pan Bottom Measuring Point A dimple usually marks the Halfway point

6 Classic What is expected coming out of a Fry Pan Bottom?

7 Fry Pan Bottom A slow build up of Investor sentiment

8 PRXI Fry Pan Bottom

9 MBI Fry Pan Bottom The Breakout is the signal

10 PRXI Fry Pan Bottom

11 Fry Pan Bottom Breakouts

12 OCZ J-Hook J-Hook

13 Looking For the Big Moves J-Hook Set Up

14 AFFY- Long Legged Doji Long Legged Doji shows major Indecision

15 A Kicker signal that sets up a J-hook AXP Kicker

16 SSH Kicker Expected results

17 Common Price Movements

18 Easy to spot support & resistance price targets

19 T-Line EA Breakout Breakout Steady Eddy Best Friend Blue Ice Failure Left/Right Combo Slow Curve

20 EA Breakout CS make pattern break out Identification easy

21 Blue Ice Failure

22 HERO 3 wave Where are the big money investors watching for a support?

23 Support Candlestick Signals provide a visual advantage

24 CBI BO steady eddie T-line provides a comfort

25 BF down and up Candlestick Signals and gaps = your best friend

26 Support Morning Star signal

27 Bidu Short Obvious Resistance?!

28 Doji on 50, sandwich Rule of the Doji

29 Series of Doji s This is telling you something

30 What are the signals and patterns looking for?

31 What Are We Looking For? Big Gains %80

32 Left/Right Combo

33 Stay Short

34 Slow Curve Exit strategy

35 INVN RB Doji Rule

36 EA FP What is this telling us?

37 Fry Pan Bottom Breakouts Simple entry strategy, Set buy stop

38 DANG A Breakout is obvious

39 Expected Results BONT 100% plus gain

40 Fry Pan Bottom minutes, days, months The indecisive rounding bottom is the predominant factor

41 TSPT FP

42 Rounding Bottom or Slow Curve

43 Slow Curve T-line Crunch

44 A build up of investor Bullish sentiment Slow Curve

45 SPWR Jan 8, 2013 Sold 1/2 Bought this week?

46 Slow Curve Strong Option Trade set ups

47 FSL RB High probability results

48 BIOL Slow Curve Obvious Break Out Level

49 Slow Curves

50 DEPO RB now what? What is possibly setting up?

51 Slow Curve

52 Slow Curve Buy Entry

53 Rounded Bottom BO

54 IMUC Rounding Bottom The pattern sets up with signals

55 JKHY Rounding bottom When to Buy

56 Excellent for option trades Closed option position at $8.70 Bought Jan 75 $2.40

57 FOE Rounding Bottom Buy Here

58 T-line Crunch

59 Classic

60 KKR Classic What is expected after a Fry Pan Break out?

61 LOW Classic Set Up

62 Du m p l i n g To p

63 AMED Short with the Market Dumpling Top

64 FRAN Short to a Target FRAN- Breaking thru support Where is likely target?

65 Cradle Pattern The Cradle Pattern is a symmetric bottom pattern that is easy to identify. A downtrend becomes obvious with a large black candle at the bottom. A series of small or indecisive trading days trade in a flat area. A bullish candle, more powerful with a Bullish Engulfing signal, is formed of approximately the same magnitude as a Bearish candle at the end of the downtrend. This signifies that the Bulls have come out of the indecisive trading area with decisive force.

66 Cradle Pattern Cradle Pattern

67 NSM Cradle Cradle and a close above the T-line

68 Cradle Pattern

69 Cradle Pattern

70 How to identify pullbacks versus reversals

71 Jay Hook Pattern Helps to differentiate between profit taking and a full-scale reversal

72 Jay Hook Pattern The first move of the uptrend is very strong. A candlestick sell signal indicates a pullback about to occur. After a few days, small indecisive candles start to appear Doji, small Hammers, Bullish Engulfing signals

73 Jay Hook Pattern The first test becomes the recent high Indecision as found in candlestick sell signals at the recent high becomes a quick indicator to get out of the position A Bullish candle breaching the recent high illustrates that investor sentiment is taking prices up

74 J Hook What do the candle formations say on The pull back?

75 J Hook Buy Points

76 FOSL Spread Strategy J Hook great for option Spread trades

77 Best F J Hook Why is a J Hook anticipated?

78 J Hook

79 J Hook

80 Gap up to resistance J Hook Break out

81 Scoop Pattern An extended flat trading area Followed by a pullback Buy signals bring price back up to flat trading range Once price breaks above flat range, look for strong uptrend

82 Scoop has expected results

83 Scoop Pattern- Completed

84 Scoop pattern - Do not scan for a Scoop

85 Scoop Pattern use it to Analyze

86 Scoop Pattern - What should happen upon confirming?

87 Scoop Pattern - A strong trend to potential targets

88 Scoop

89 TSPT Scoop

90 DWA Inverted Scoop 23.5 Dreamworks Animation SKG Inc ( , , , , ) x November December February 11 50

91 Belt Hold Pattern Strong prevailing trend The candlestick body should be the opposite color of the prevailing trend Gap on the open, continuing the trend The open is the high or low of that trend The length of the body should be a long body.

92 Belt Hold Kite Realty Group Trust ( , , , , ) The Deeper the open x November December February 11 50

93 KCAP Belt Hold Kohlberg Capital Corp ( , , , , ) x November December February 11

94 Belt Hold Herbalife Ltd ( , , , , ) x December February 11 50

95 ESI Belt Hold ITT Educational Services Inc ( , , , , ) x November December February 11 50

96 BECN Beacon Roofing Supply Inc ( , , , , ) x November December February 11 50

97 Belt Hold

98 When to take profits

99 What Pattern set up?

100 EOX J Hook? What should we be looking for?

101 Belt Hold

102 Belt Hold - Adds strength to existing trends

103 Belt Hold shows the sellers are flushed out

104 Belt Hold gets rid of the last of the sellers

105 The bigger the Signal! Belt Hold

106 Easy Trend Analysis

107 Dow x x November December Dow Jones Industrial Average (13,944.05, 14,022.62, 13,944.05, 13,991.54, ) February? x10 50

108 Looking for the Big Moves J Hook Set Up

109 Hitting the Big Ones 10.5 Keryx Biopharmaceuticals Inc ( , , , , ) KERX - two weeks ago x November December February 11

110 Trading Gaps Gaps represent enthusiasm to get into a position to the point that investors will pay prices away from any of the previous day's trading range. Great for identifying panic selling at the bottom and exuberant buying at the top.

111 TRADING GAPS What is the definition of a GAP? Gap or window occurs when there is a gap in price within a specific time frame. In a rising chart, it illustrates prices opening higher than previous trading range. The buyers have stepped in with great enthusiasm. In a declining chart, it illustrates prices opening lower than previous trading range. The sellers are getting out at any cost.

112 Four Basic Gaps

113 Gap Up at Top

114 Gap Down at Top

115 Gap Up at Bottom

116 Gap Down at Bottom

117 Two show EXHAUSTION

118 Gap Up at Top

119 Gap Down at Bottom

120 A Gap at bottom get in, a Gap at top get out

121 Gap Up at Top

122 FSYS, -exuberance Gap up at Top, Start looking for selling

123 AFFY Doji after gap up at top A gap up in overbought conditions make it time to watch for a sell signal. EXHAUSTION

124 AGEN Gap up Doji at top A Gap up in the overbought area, start watching for a candlestick sell signal Spinning Top = WHERE?

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