SAKATAS HOMMA 📈 Profile picture
Jul 13, 2022 21 tweets 9 min read Read on X
A thread on Trading Chart pattern set-ups with annotated charts examples.

#Trading #swingtrading
1. The Double Bottom:

A trend reversal pattern.
Two lows of similar levels are formed.

ENTRY:
BO of the Neckline shows trend reversal by forming a Higher swing high which is also the entry point.

SL: LOD or swing low at a lower TF

TARGET:
Height of the NL to B1
Eg: #GRANULES Image
2. The Volatility contraction pattern, VCP by Mark Minervini

After a prior uptrend, a stock digests its gains, and profit taking happens. It then bases and gets ready for the next uptrend. VCP is a characteristic of a constructive base. It has the following characteristics:
1/n
VCP cont..
Contraction in:
1. price range of successive swing high lows from left to right.
2. time-taken for each contractions from left to right.
3. Volumes from left to right.

Price breaks out with an explosion in volatility with volumes post 3/4 contractions.

2/n
All Triangles post an uptrend are VCPs,
eg, #TATAELXSI building a SYMMETRICAL TRIANGLE PATTERN and showing VCP.
Note: Symm. T can break out on either side.
Buy above PIVOT point, above the DTL = 8336
SL Swing low = 7590 (or entry days low)

3/3 Image
3. Ascending Triangle pattern.

Resistance is a horizontal line.
Support is an up-trending line.
Note the VCP inside the pattern.

Entry at Breakout above the Resistance.
BO with Volumes tends to be more successful.
SL = LOD or swing low.

eg: #SCHAEFFLER Image
4. Flag Pattern.

Pattern looks like a flag.
Has a pole (prior uptrend) and a Mast (retracement due to profit taking).
Constructive Flags must have a volume dry-up during the mast formation.

Entry = Break of DTL (volume on BO is necessary).
SL = Swing low or LOD
#SCHEFFLER Image
5. A Falling Wedge.

Price bounces between two downward sloping trendlines which are converging.
They have a Bullish bias post an uptrend (but can break either side).

Entry = Break of Resistance line (+ Volumes better).
SL = LOD or below Support line.

#Caplinpoint Image
6. The Head and Shoulder Pattern.

1 of the most reliable reversal patterns.
A trend change from HL-HH to LH-LL (marked on chart).
Line joining 2 lows forms the neckline.
Trade entry = breakdown of NL
Target = (HH-NL) subtended downwards from breakdown.

1/n Image
Volume profile of a good HnS.
1. Head has lower volume than LS
2. RS has an even lower volume than Head

eg: #KANCHI

2/2 Image
8. Inverse Triangles/ Broadening wedges/ Megaphones

They generally have a bearish bias long-term.
Form consecutive Higher High and higher lows.

swing traders can initiate trades at the reversal points on either side.

eg: #INDIAGLYCOL
has a 20% upside after the flag breakout Image
#VCP #UTTAMSUGAR
Latest contraction in price is around single digits. Hardly any room left for one more contraction.
This will release all the energy soon. Image
Another HnS with a downsloping Neckline.
They are more bearish than usual.
Beautiful, Target met.
#JUBLPHARMA Image
Flag pattern target would be the length of pole extended upwards from the Breakout point.
#APARINDS Image
9. The Flat Base Pattern.

Reliable, easier to spot, and easiest to manage risk.
Prices bounces between a rectangle for weeks before Breaking out above (or below, in a downtrend).

Entry: At the BO.
SL: below the BO candle.
target: height of the rectangle.

eg: #Wonderla Image
Example: Kennamet

Cup and Handle with a Double bottom.

Beautiful. Image
10. The High Tight Flag/ The powerplay set-up.

one of my fav. as a swing trader.

A Flag with:
=>100% move in <8 weeks
correction of =<25% from the top.

Entry: Break of Flag DTL or flag top
SL: low of the swing low/mast low
Target: same as flag
Eg: SRHHPOLTD (not completed) Image
Another example of a perfect VCP Image

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More from @SakatasHomma

Jul 9
I just ran my Tightness scan.

Here are my Top 5 Strong Relative strength stocks with Epic Tightness.

📈🧵 👇

1/n
1. Ion Exchange

A true Pole with an HVE.
epic volume contraction as well. Image
2. Solarind Image
Read 7 tweets
Oct 6, 2023
Stocks that Broke out (or about to) with Highest Weekly Volumes in the Year:

1. Alhada

#nifty50 Image
2. Share India Image
3. Network 18: Image
Read 18 tweets
Jul 15, 2023
11/ IT names that are breaking out or about to: (in no particular order):

Mastek:

Have you seen a just Wao set up?
here.

Can call it an iH&S base Breakout.
see volumes.
Triple B is firing on a weekly base (wow?) https://t.co/2I5hWmL4q5
Image
12/ Mphasis:

we have our 1st set of Higher-lows and Higher Highs in what could turn out to be a long series of HH-HLs.

Love it. Image
13/ Eclerx:

Flag formation after a peak VCP in a weekly Timeframe.
See the Volumes?
why are you surprised? Image
Read 10 tweets
Jul 15, 2023
1/ IT names that are breaking out or about to: (in no particular order):

Nifty IT:
RS is about to turn +ve.
Still in the Stage-1 base, but looks poised to Breakout.

Once this horizontal resistance is removed, the sloping TL may act as a minor resistance.

NiftyBees? https://t.co/Ul0nb4NS2Vtwitter.com/i/web/status/1…
Image
2/ Tata Elxsi:

After a double bottom base BO, now just breaking out of a small consolidation just below a major GAP resistance.

If this gets taken out, then it's time to Less Goooo? Image
3/ LTIM:

Poised to breakout of a rectangular stage 1 base.
Don't get fooled by the color of the recent candle.
Its a buying (accumulation) candle. Image
Read 10 tweets
Jul 8, 2023
1/ Stocks that have broken out or starting to break out of their Stage 1 bases:

Zuariind:

The important Pivot is marked, above which momentum is likely to increase.
2/ Mangchefer:

A close above the recent swing high is a confirmation of the continuation of the uptrend.
3/ Rossari Biotech:

Stage 2 Journey has begun
Read 35 tweets
Jun 20, 2023
1. Homma Triple B: Buy Before Breakouts hits for today:

Triple B scans for stocks that are setting up inside the base and ready for a breakout.

BHARATWIRE,
RATEGAIN,
KINGFA,
REPCOHOME, ImageImageImageImage
2.

GOLDTECH,
BECTORFOOD,
PSPPROJECT,
DATAMATICS,
SBCL, ImageImageImageImage
3.

BOROLTD,
NLCINDIA,
EPL,
EIMCOELECO, ImageImageImageImage
Read 13 tweets

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