The ability to read stock charts can help a lot in making sound investment decisions as it not only gives a snapshot of a stock past performance, but also helps predict the future direction. In this article, we summarize the most reliable chart patterns used by investment professionals.
The most reliable bullish chart patterns:
* Cup with Handle: The cup is in the shape of a 'U' and the handle has a slight downward drift. The right-hand side of the pattern should have a low trading volume. It can be as short as seven weeks and as long as one year. As the stock comes back up to test the old highs, Investors who bought at or near the old high will start selling the stock to break even. This selling pressure will make the stock price trade sideways with a tendency towards a downtrend for four days to four weeks, then it takes off and takes out the old highs.
* Double Bottom: This pattern describes the drop of a stock, a rebound, another drop to the same level as the original drop, and finally another rebound that goes higher than the previous highs.
* Pennant: It is formed when there is a large movement in a stock, followed by a consolidation period with converging trendlines, followed by a breakout movement in the same direction as the initial large movement.
* Inverse Head & Shoulders: This happens when the price falls to a trough and then rises again. The price falls below the former trough and then rises again. Finally, the price falls again, but not as far as the second trough. Once the final trough is made, the price heads upward toward the resistance found near the top of the previous troughs. The first and third trough are considered shoulders, and the second peak forms the head.
The most reliable bearish chart patterns:
* Head & Shoulders: This happens when the stock rises to a peak and subsequently declines, then the price rises above the former peak and again declines, and finally, rises again but not to the second peak and declines once more. The first and third peaks are shoulders, and the second peak forms the head.
* Double Top: This pattern describes the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop. The double top looks like the letter 'M'. The twice touched high is considered a resistance level.
* Rounded Top: A rounded top, which looks like an inverse 'U', may form at the end of an extended upward trend and indicates a reversal in the long-term price movement. The initial upwards trend becomes exhausted as the demand for the stock dries up. The reversal to the downward slope of the rounding top indicates that demand has tapered off and a surplus supply is present, basically there are more sellers than buyers.
* Pennant: It is formed when there is a large movement in a stock, followed by a consolidation period with converging trendlines, followed by a breakout movement in the same direction as the initial large movement.
In our Investment Newsletter, we follow these guidelines and more to give you the best investment tips and help you choose what stocks to buy and most importantly when to buy. Our stock picks usually belong to the best performing sectors but could also include some short recommendations.
Marc Azar is a major contributor at the TheMarketNewsletter.com, a subscription based stock market newsletter providing daily commentary on the financial markets and a list of recommended stocks or ETFs.
Article Source: http://EzineArticles.com/?expert=Marc_Azar
From my analysis, a-b-c has already completed. the begin of subwave i of 5...
At 8.27pm Malaysia time.
M30
At 7pm Malaysia time
I make it bigger...
Salam...
From my view, GU is going to form wave e in wave 4 ( as in the chart below).
But if it keeps going up, the most possibility is to form subwave i in wave 5.
will the price will truely penetrate the upper trendline (blue)?
Salam..
Below are my multiple monitors and PCs for trading purposes that i been using it since April 09. It's so easy to trade by having multiple monitors ;)
Mon July 20.
Buy Limit : area 1.6172 - 1.6190
TP 1 : 1.6210
Tp 2 : 1.6243
SL : 1.6154
Salam and a gud day.
It's a clear pictures that the wave is mobing uptrend....this is weekly chart and the movement of every single candle would be average of 300-600 pips....
Entry : SELL @ Sell limit
TP 1 = 0.8020 (TP hit)
TP 2 = 0.7990 (TP hit)
TP 3 = 0.7970 (TP hit)
Entry : BUY
TP 1 = 1.4008 (TP hit)
TP 2 = 1.4058 (TP hit)
TP 3 = 1.4090 (TP hit)
Entry = SELL
TP 1 = 157.25 (TP hit)
TP 2 = 156.86 (TP hit)
Entry : BUY
TP 1 = 1.6054
TP 2 = 1.6089
TP 3 = 1.6123
Time : 7.18pm Malaysia
TF : H4
Time : 2.41pm Malaysia
TP1, TP2 and TP3 are targets for time being.
Updates:
1) TP1 has just hit at 3.03pm
2) TP2 & TP3 have already reached
Time : 2.08pm Malaysia.
Salam..this is my prediction..still downtrend..
TP1 and TP2 have been hit already for the 1st time.. I am waiting for 2nd time to be hit and also TP3 and TP4.
Today there is possibility for the market to go up. My target point if it go up is 139.330 and then it will go down. I am waiting for this possibility as well.
Recap:
1) This was my post on 25 Feb 09. Refer here : http://eejam.blogspot.com/2009/02/gj_25.html
note : As usual, all the TPs are gauged by using pipsrider technique.
Salam...
Pada malam sabtu (28 feb) yg lepas, aku dan famili dinner di Restoran Tasik Indah Shah Alam...aku ingin meraikan malam birthday isteri aku (29 Feb...wpon 29/2 di raikan 4 thn sekali)..sian die 4 thn sekali birthday....kami order deepfried siakap fish sweet sour, kailan ikan masin, udang tepong, ayam crispy, dan air tembikai dan air carrot susu....boleh tahanlah rasa makanan situ,,cuma aku dan isteri mbandingkan restoran ini dgn restoran yg aku sekeluarga pernah makan 5 kali di Sg Buloh (terlupa nama restoran tu).
Lepas makan, kami sampai rumah dlm jam 10.30 mlm....selepas itu isteri aku mengadu sakit perut...sejak dr petang dia dah sakit perut...
Terus kami bersiap dan bawak die ke SMC shah alam..
Sampai di sana, selepas di periksa oleh jururawat bertugas, isteri aku diperintahkan untuk masuk wad. huhuhu.
emmm...selepas aku register isteri aku, aku kena tidurkan anak aku irfan pulak yg berusia 2 thn 3 bulan...sian dah kul 11.30 die masih belum tido...
Selepas irfan dah tido, aku pergi menemani isteri aku yg sedang berada dlm kesakitan...dr jam 12am aku berada di samping die...emmm kesian dan kasih meyelubungi jiwaku..saat2 begini, suami perlu berada di samping isterinye...
Alhamdulillah, tepat jam 1.52am, 1 March 09, aku dikurniakan anak ke-2, baby boy, dgn berat 3.70kg. Kalaulah tahun ini ada 29 Feb, tarikh lahir die pasti sama dgn tarikh lahir mama die...
Emm skrg bertambah tanggungjwb nampaknye aku ni....hari ni pun penuh masa aku melayan kerenah irfan...skrg die dah tido sambil layan cite ultraman die...skrg aku nak layan ManU vs Tottenham pulak wpon tgh penat...takut tv tgk aku je nanti..huhuhu
Hari mendatang pasti mebuat aku sibuk...mcm mane nak bahagi masa dgn famili dan trading...aku fikirlah sendiri...!! assalamualaikum..
EU going UP....
TF H4
Time 8.45pm Malaysia
M15
Updates:
1. mlm tadi trade 3 kali dpt kutip 35 pips masa ia naik.
2. lepas tu dah masuk awal pagi, ia turun..SL penting. Bila dah positive dlm 20pips ++, rajin2 tangan set SL BE (breakeven) atau +1 atau suka hati masing2. Ini untuk mereka yg set TP banyak..biasanya 40pips ke ataslah. Kalau TP sekadar 15-30pips, dah close +ve profit.
When i enlarge the image.. :
TF : H1
Time : 8.52pm Malaysia
Salam...
TF : M15
Time : 8.00pm Malaysia
What eejam says??
H1:
From my observation, wave 5 is not yet finished. Expected to be completed at green area...and then after a complete motive wave (based on H1 chart), continues with corrective wave (a,b,c). Good luck.
Salam...
Along last week, i have no time to update my blog...
Ok,,,let's us start with EU first...
What would be EU this monday?
when i see daily chart, my prediction is as below:
Take note that the black line is the point the EU might reach.
Ok now take a look at M15:
Traders should be looking for the 5 black lines to be reached this monday...
Good luck!!
Hi...
Let's see my EU analysis...
M15
H1
If you look at H1, i mentioned that in my previous analysis (click here)...the calculation is still same...after the wave complete wave E / 4, we will see another major downtrend...
Salam...aku nampak GJ macam ni arah ia nak pergi next next week berikutnye...
Weekly chart EU:
Daily chart EU :
Wave 4 still in progress..triangle to form...
M15 Chart EU:
Here we can see better...i predict the wave 4 will complete soon.
Salam...meh pakat tengok ramalan kawe ni...ooo GU...
Salam...untuk NU, di H4 nampak macam ni...wave 5 (hijau) dari kiraan/analisa aku masih belum abis...
Salam..anyway who trade this pair, u can consider...to me whatever pairs can give you profits, u just trade it..
Salam...this is my prediction for GJ hourly...yesterday i mislooked some subwaves...even last night i was not feeling well...hopefully i recover soon..
Rembember, tonite we have NFP....
this is my prediction...
Ready for GJ to go down at 131.12 +-????
we will see...
GBPCHF will go down !!!!
Salam...GBPJPY is going to complete cycle of 12345...and start to go down anytime...;)
We will see...
When I look at today market situation seems like two double top establised, is the EU truncated??
Now i have to confirm that the price not exceed as blue box in chart below:
Pernahkah anda mendengar mengenai hari “Black Wednesday”? Ia berlaku pada 16 September 1992, di mana Bank of England (Bank Negara England) kerugian sebanyak GBP3.4 billion. Orang yang mengaut keuntungan besar di sebalik insiden ini digelar sebagai,
“The Man Who Broke the Bank of England”
Lelaki ini tidak lain dan tidak bukan adalah George Soros, pelabur Forex terkenal seluruh dunia. Soros melihat kelemahan British Pound dan kedegilan Bank of England menaikkan Interest Rates dan beliau mengambil position “short” sebanyak USD10 billion! Dan hasil ‘trade’ tersebut sahaja, beliau membawa pulang keuntungan
Melebihi USD1 Billion
HANYA 1 HARI!
Walaupun anda tidak mempunyai berbillion dollar, namun anda juga masih boleh menghasilkan duit dalam arena yang sama seperti Soros dan masih berpeluang menghasilkan duit yang lumayan (walaupun bukan billion) dan yang paling penting dalam masa yang singkat.
Apakah arena yang disebutkan ini? Ia dipanggil pasaran Forex. FOREX adalah singkatan dari The Foreign Exchange Market. Dan ia adalah di mana semua matawang di dunia ini didagangkan.
Mungkin anda pernah dengar tentang Forex, namun mungkin anda tidak tahu bahawa anda berpeluang untuk melakukan transaksi Forex atau ‘trade Forex’. Ini kerana pada awalnya, hanya ‘Big Boys’ atau bank yang bermodal besar sahaja yang dibenarkan untuk ‘trade’ Forex. Mereka –orang-orang terkaya di dunia dan bank-bank besar- dengan senyap dan cepat mengambil duit hasil titik peluh orang ramai yang dilabur di dalam Mutual Fund, Bond, dan mereka laburkan kembali ke pasaran Forex. Mengapa mereka berbuat sedemikian? Sudah jelas kerana…
Forex dapat menjana untung terbesar berbanding pasaran lain!
Namun sejak tahun 96-97, dan mula popular sejak tahun 2002-2003, orang ramai dibenarkan untuk trade di dalam pasaran Forex menggunakan Firma Online Forex Brokerage.
Juga difahamkan bahawa ada sesetengah bank yang memperuntukkan 20-30% dari keseluruhan modal mereka ke dalam pasaran Forex dan menjana untung sebanyak 40-60% dari keseluruhan untung tahunan dengan berniaga dalam pasaran Forex. Di bawah adalah Top 10 Pelabur Forex seluruh dunia:
