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Trade Chart

Patterns
Lik Th
Like
The P
Pros
Suri Duddella
December 13, 2007

Trade Chart Patterns Like The Pros

Disclaimer
suriNotes.com is neither an investment advisory service nor an
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i
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t
t advisor
d i
and
dd
do
not purport to tell people, or suggest to people, what they should buy
or sell for themselves. Trading and investing can be a very
dangerous venture for there may be a very high degree of risk
i
involved.
l d P
Pastt results
lt are nott iindicative
di ti off ffuture
t
returns.
t
The
Th
information provided here is for educational purposes only, and does
not come with a warranty of any kind, should you choose to interpret
is as investment advice. In no way is suriNotes.com is a sponsor of
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times buy, sell, or hold any of the securities covered on this site.
Neither suriNotes.com nor anyone affiliated with suriNotes.com
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Trade Chart Patterns Like The Pros

, is

Book
300 Pages
8.5 x 11 Book

65 Patterns
225 Ch
225+
Chartt Illustrations
Ill t ti
Precise Entries/Exits
Targets/Stops

$60

Trade Chart Patterns Like The Pros

Book Introduction Video

suriNotes videos (youtube)

Trade Chart Patterns Like The Pros

Book Overview
4 yyears in making/data,
g
, 24 months of writing
g
Written for Traders with Trading Perspective
More p
practical than theoretical
Emphasizes howhow-to of pattern recognition
Each pattern with brief synopsis, 22-4 examples
Precise entry and exit techniques
Each example with stops/targets
No Oscillators, Indicators or Statistics

Trade Chart Patterns Like The Pros

Book: 13 Chapters Covers


Covers

Chart Types
yp ((Basic types,
yp , 3LPB))
Bar Groups (Market structures, NR7ID)
Pivots ((Floor,, Fib. Zone,, Open
p Range)
g
)
Geometric (Triangles, Rectangles)
Harmonic (ABC, Gartley, Butterfly)
Price Action (Head & Shoulders, C & H)
Top and Bottoms (V, Double, Triple)
Exotic Patterns (Dragon, Sea Horse)
Channels (Donchian, Pitchfork, LRC)
Trade Chart Patterns Like The Pros

suriTools Video

YouTube Video
Video
Search for suriNotes on
YouTube

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T 5 Favorite
Top
F
it Patterns
P tt

Trade Chart Patterns Like The Pros

Pattern Trading .
There are NO Perfect Patterns
All Patterns Fail Key is to know when to
Trade
Trade them and when to Avoid
Avoid them
There is no single pattern which is a
Holygrail
H l
il
Patterns must be clearly visible Do not
FORCE a pattern
Trade Chart Patterns Like The Pros

How to Use this Book


Have an Open Mind Be a Student
Pick 33-5 patterns of your interest of similar
groups
Study them thoroughly (Historically
(Historically, Real
Real--Time)
with your Instruments, TimeTime-Frames, Indicators
Master
Master your Setups and Master
Master
Master your Trades
Build Confidence of Why/How/When to trade
Let your Trading demand more patterns to
Master
Trade Chart Patterns Like The Pros

Top 5 Patterns
1 Trader Vic
1.
Vics
s 2B Patterns
2. Fib. Zone Pivots
3. ABC P
Patterns
tt
(A
(Auto)
t )
4. Dragon
5. X5 Patterns
Gartley,
y Butterfly,
y Crab, Bat

Trade Chart Patterns Like The Pros

Trader Vics

2B
Trade Chart Patterns Like The Pros

Trader Vics
Vic s 2B Patterns
Victor Sperandeo Trader
Trader Vic
Vic
Principles of Professional Speculation
Speculation
Irregular
I
l D
Double
bl T
Top or D
Double
bl B
Bottom
tt

Trade Chart Patterns Like The Pros

Trader Vics
Vic s 2B Top (Sell)
2B Sell (Rules)
Must make a New High
Decent Retracement
Close above New High
No Follow Through
Close below Breakout Low
Short: below the Low
Target Major Swing Low
Stop: Above Breakout High

Trade Chart Patterns Like The Pros

2B Top
((Sell))

Trade Chart Patterns Like The Pros

Trader Vics
Vic s 2B Bottom (Buy)
2B Buy Rules
A New Low
Decent Retracement
Another Low below New Low
No follow Through
Close above Breakdown High
Long above Breakdown High
Stop below the Low
Target a Major Swing High

Trade Chart Patterns Like The Pros

2B Long
(Example)

Trade Chart Patterns Like The Pros

2B Patterns

Trade Chart Patterns Like The Pros

Fib
Fib. Zone Pivots
Uses Previous days
day s
Open, High, Low, Close

Daily Range Based: DR = High[1] Low[1]


Computes Support and Resistance Bands
based on Fib. ratios off Daily Range above
and below the Pivot

Trade Chart Patterns Like The Pros

Fib Z
Fib.
Zone Pivots
Pi t
(method)

Trade Chart Patterns Like The Pros

Fib
Fib. Zone Pivots
Fib. Zone Pivots
Pivot Point (PP) = (H+L+C)/3
Daily Range (DR) = (H(H-L)
First Resistance ((R1)) = PP +
0.5*DR
Second Resistance (R2) = PP +
DR
First Support
pp ((S1)) = PP 0.5*DR
Second Resistance (S2) = PP
DR
Resistance Band (RB1) = PP +
0.618*DR
Support Band (SB1) = PP
0.618*DR

Trade Chart Patterns Like The Pros

Fib. Zone
Pivots

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Fib. Zone
Pivots

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ABC Patterns

Trade Chart Patterns Like The Pros

ABC Patterns
A

H
H.M.
M Gartleys
Gartley s Book
Book
3-Pivot, 11-2-3 Waves
Li ht i B
Lightening
Boltlt
B
Trend, Retracement, Trend
AB = CD Pattern formation
Trade in the Direction of the Trend

Trade Chart Patterns Like The Pros

AB = CD Structures

Trade Chart Patterns Like The Pros

ABC Bullish
ABC Bullish Pattern
2 to 3 bar Pivot Strength
Must have at least 62%
Retracement
Entry: After ABC pattern,
Long Above the High of
Previous Bar
STOP: Below C
Target: Between 100% of
AB and 127% of BC

Trade Chart Patterns Like The Pros

ABC
Bullish

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ABC
Bearish

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ABC Bearish

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Dragon
g

Trade Chart Patterns Like The Pros

Dragon
Double
Double Bottom
Bottom or Double
Double Top
Top Pattern
Head, 22-Legs, Hump, Tail
H
Hump
fforms between
b t
38 tto 50% off R
Range
Draw Trendline from Head to Leg1
Potential Divergence in any Momentum
Indicator ((CCI,, RSI))
Look for WideWide-Range Bars in Leg2 for
Signals
Trade Chart Patterns Like The Pros

Dragon

Trade Chart Patterns Like The Pros

Trading
Dragon
Dragon

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Dragon

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Inverse
Dragon

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Gartley Patterns

X5
Trade Chart Patterns Like The Pros

X5 Harmonic Patterns
H. M
H
M. Gartley in 1930s
1930 s
Larry Pesavento (Fibs), Bryce Gilmore
(Butterfly) and Scott Carney (Bat
(Bat, Crab)
Gartley/Bat (Retracement Patterns)
Crab/Butterfly (Extension Patterns)

Trade Chart Patterns Like The Pros

Gartley Setup
A
C

B
D
AB = CD

B >= 61.8 of XA
Buy above D

Trade Chart Patterns Like The Pros

Gartley
H.M. Gartley
Gartleyss Book Profits
Profits in Stock Market
Market
Harmonic Pattern
Retracement Type
Gartleys Center B is < 61.8% of XA
D
D (Action point) within XA
Success rate of all Harmonic Patterns < 6060-70%
Look for Potential Reversal Zone (PRZ)
Price--Action in PRZ is very critical for success
Price
Trade Chart Patterns Like The Pros

Potential Reversal Zone (PRZ)

PRZ forms within


0.62 to 0.886 of XA
1.00 to 1.38 of AB
1.27 to 1.38 of BC

Trade Chart Patterns Like The Pros

CSCO Gartley with Targets

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Gartley
(Bullish)

Trade Chart Patterns Like The Pros

Bullish Crab Example (Dec. 11, 2007)

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Gartley
(Bearish)
(B i h)

Trade Chart Patterns Like The Pros

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Trade Chart Patterns Like The Pros