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

Oct 16, 2022
Cyclicality and Stage analysis: 🧵🧵🧵

📈 Every stock goes through a cycle of 4 stages.
📈 Own the stock in Stage2
📈 Do NOT own it in Stage 4

We use the following to determine the stage:
1. Trend analysis: HH-HL or LH-LL
2. 30-week moving average slope, and
3. Volumes

1/n
📈Stage1:
Price Sideways between 2 levels
30 WMA Flat
Price whipsaws 30 WMs
Volumes increasing to the right side of base with increase in green towers

📈Stage2:
Uptrend HH-HL (higher high and higher low)
Price above 30WMA
30 WMA sloping up
Volume Green towers> Red towers

3/n
📈Stage 3:
Price sideways again
30 WMA Flat
Price whipsaws 30 WMA
Volumes higher with Red towers increasing

📈Stage4:
Downtrending price with LH-LL
Price below 30 WMA
30 WMA sloping down
volume Red towers> green towers

Some examples of post covid Bullrun darling superstocks
4/n
Read 14 tweets

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