Tuesday, 10 May 2011

TA plain and simple - Michael Kahn

Some common continual patterns:
  1. rectangle
  2. triangle (ascending, descending, symmetrical)
  3. flags
  4. cup with handles
Some common reversal patterns:
  1. head and shoulders
  2. double tops and bottoms
  3. one day reversal
  4. triangles and rectangles
  5. rounded tops and bottoms
  6. spikes

The above chart patterns can be easily found on this internet, thus I am not putting examples of the chart here. However, it is not that easy to recognise these patterns on real life chart. Slowly will know more if see more charts everyday. And volume plays a big part in these patterns too.

3 comments:

la papillion said...

Hi OT,

You're right..volume plays a key role in this.

I find this site extremely instructive in chart patterns:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns

All are real examples.

OT83 said...

Hi LP,

Thanks for sharing the nice link.

It is a good site to learn more about chart pattern. Personally, I feel the Michael Kahn is not detailed enough.

Thanks!

la papillion said...

Hi OT,

Most books are not detailed enough because they lack concrete or real life examples of how to see it. The best is to read blogs or online materials because they will most definitely include a real example or two to illustrate the theory.

That said, I don't really paid much attention to patterns. I find that rather unpredictable before it happens. Only after the price moved, then you looked at the same chart and you see this pattern and that pattern. Hence the predictability and reliability is not there. I've been tricked countless times before so that is my lesson. You'll have to work out something that suits you I suppose.

Gd luck!

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