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.

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

Height of the NL to B1
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:
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.

All Triangles post an uptrend are VCPs,
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.

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
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


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.

has a 20% upside after the flag breakout Image
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.
Flag pattern target would be the length of pole extended upwards from the Breakout point.
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. 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):


Have you seen a just Wao set up?

Can call it an iH&S base Breakout.
see volumes.
Triple B is firing on a weekly base (wow?)
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.

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:


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.

REPCOHOME, ImageImageImageImage

SBCL, ImageImageImageImage

EIMCOELECO, ImageImageImageImage
Read 13 tweets

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