Chart Pattern Secrets

Size: px

Start display at page:

Download "Chart Pattern Secrets"

Marilynn Haynes
5 years ago
Views:

Chart Pattern Secrets June 14, 2018 Next Alert: 06/19/18 The Trading System: Application of

2 2

3 3

4 4

5 5

5/15/18: The breakout is to the upside and prices could be headed for a retest of the January highs. No new trades for now. 5/10/18: The S&P mini and the DOW are showing a triangle chart pattern.

6 5/15/18: The breakout is to the upside and prices could be headed for a retest of the January highs. No new trades for now. 5/10/18: The S&P mini and the DOW are showing a triangle chart pattern. The breakout from the triangle is imminent but the price direction can go either way. One way to take advantage of the price breakout is to purchase a CALL and PUT option with a strike price as close to the current futures price as possible but no more than three strike prices away from the current futures price. Then once the breakout occurs close the losing side once it loses 25 to 30% of the original purchase price and hold the other. Or, simply wait for the breakout to occur and buy in that direction. 6

7 7

8 8

9 9

10 06/14/18: December Natural Gas is forming a pennant formation. The breakout could be either way but the seasonal price trend points down into September. 10

11 6/05/18: Crude prices may be topping out. Keep watching for top chart patterns. The normal seasonal price pattern for the energy markets is to top out in the May/June time frame so keep watching for top chart formations to develop. 11

6/05/18: There is a small 1-2-3 top in place and a trade below the number 2 point signals a sell or purchase PUT options with a strike price as close to the money as your account

12 6/05/18: There is a small top in place and a trade below the number 2 point signals a sell or purchase PUT options with a strike price as close to the money as your account allows. Conservative traders can wait for a closing price below the uptrend line for a safer entry point. Implied volatility chart: 12

13 6/05/18: Gasoline may also be topping out. There is a small top in place and a trade below the number 2 point signals a sell or purchase PUT options with a strike price as close to the money as your account allows. Conservative traders can wait for a closing price below the uptrend line for a safer entry point. Implied volatility chart: 13

14 Seasonally, the grain markets top out during the May/June time frame and trade to seasonal lows in September, so keep watching for top chart patterns. 14

15 05/30/18: The head and shoulders chart pattern was cancelled with new highs beyond the head. Keep watching for new formations. 15

16 06/14/18: November soybean prices have fallen below the uptrend line and the 50% retracement level signaling a new downtrend. A retest of those two levels is likely and if the retest fails to rise above those levels I would purchase near-the-money PUT options expecting prices to fall to summer harvest lows near

17 6/05/18: Soybean meal has an H&S top in place. A trade below the neckline signals a sell or purchase PUT options with a strike price as close to the money as your account allows. The first downside profit objective is below the 50% level near Implied volatility chart: 17

18 18

19 19

20 20

6/05/18: October sugar continues moving up but there is resistance just above current prices near 13.63. 5/30/18: The 1-2-3 bottom formation has completed and you would be long.

21 6/05/18: October sugar continues moving up but there is resistance just above current prices near /30/18: The bottom formation has completed and you would be long. First resistance is around CALL option implied volatility is low for single option purchases. 5/01/18: Sugar prices continue the downtrend but from June through September the market builds a weather premium as frost fears enter the growing regions. We will keep watching for a bottom chart formations. 21

22 : New highs cancel the developing head and shoulders top. Keep watching for topping chart patterns. 22

23 5/24/18: The bottom is complete. All is needed to trigger a long position is for prices to continue higher beyond the #2 point. 23

24 24

25 Disclaimer and Disclosure of Risk Statement Trading commodity Futures and options on futures involves significant risk. You must consult licensed professionals or your own advisors before trading to determine if it is suitable for you. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. You must consult your broker or advisor before making any trade to insure current prices, margin requirements and other factors determinant to suitability. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers. You agree before doing any trade contained herein to consult your charts and advisors to verify all information and make your own decision. All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success. CFTC RULE HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. 25

Chart Pattern Secrets

Chart Pattern Secrets October 04, 2018 Next Alert: 10/09/18 The Trading System: Application of Trading Chart Patterns with Futures and Option Contracts Copyright 1997 All rights reserved. 1 2 3 9/20/18: