Chart Patterns & Algo. Trader

Transcription

1 surinotes.com s Feb. 26, 2018 Chart Patterns & Algo. Trader Trading ABC Bearish Patterns A Weekly Publication

2 Chart Patterns & Algorithmic Trader 2018 ALL RIGHTS RESERVED No part of this document may be reproduced or transmitted without the express written consent of the surinotes.com or Suri Duddella. This document relies on sources and information reasonably believed to be accurate, but neither the author nor publisher guarantees accuracy or completeness. The examples in this document could be considered hypothetical trades. The CFTC warns that: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. COPYRIGHT 2018 surinotes.com Data & Charts are created by TradeStation Software from TradeStation Securities. Published in the United States of America V21

3 Disclaimer: All the material in this document is provided as Educational Material only. NONE of the chart patterns or chart setups or all other material in this document are trade recommendations. Trading is risky. You are 100% responsible for your own trading. Trading is risky. You are 100% responsible for your own trading. surinotes.com or Suri Duddella, specifically disclaims any and all express and implied warranties. Your trades may entail substantial loss. Nothing in this document should be construed as a recommendation to buy or sell any security or other instrument, or a determination that any trade is suitable for you. Chart Patterns and other material in this document are Auto generated in TradeStation software and we try our best to check for errors and data consistency, but they may still consist of data or algorithmic errors.

4 Market Quotes "The most dangerous habit of traders is probably loss aversion. If paired with the habit of averaging down, it will quickly blow any account. -- Fat Tails "Poise, patience and silence are attributes that must be cultivated. These virtues do not come automatically to the stock market trader. - Jesse Livermore Good judgment is usually the result of experience and experience frequently is the result of bad judgment. -Robert Lovell

5 Table of Contents US Markets Patterns Gallery Chart Patterns Energy & Oil Stocks Stocks/Futures/Commodities/FX Earnings Next Week/Charts Watch Lists Bullish/Bearish, Relative Strength Key Supp/Resistance/Pivots Charts Gap Charts Weekly Relative Performances ALGORITHMIC TRADER Trading ABC Bearish Patterns Algorithmic Trades Symbols Universe Books/Websites/Software

6 Chart Links Major Market Indexes Trends 10 Gold, Silver, Oil and 10 Yr Notes 11 TRAN, VIX, Cup & Handle Pattern (W) ABC Bullish Pattern Bullish Gartley Pattern ABC Bearish Pattern 16 BRTI ABC Bullish Pattern 17 $TRAN ABC Bullish Pattern 18 Sector ETF Charts 19 CBS H&S Pattern 23 DIS Parabolic Arc Pattern 24 DISCA Head and Shoulders Pattern 25 DIS ABC Bearish Pattern 26 NXST Symmetric Triangle Pattern 27 TWTR Double Bottom Pattern 28 SWKS Cup & Handle Pattern 30 AMD ABC Bullish Pattern 31 CYBR ABC Bullish Pattern 32 CYBR Symm. Triangle Pattern 33 TSCO ABC Bullish Pattern 34 RL Cup & Handle Pattern 35 ADSK ABC Bearish Pattern 36 GILD Cup & Handle Pattern 37 UA ABC Bullish Pattern 38 UTX ABC Bullish Pattern 39 ATHN ABC Bullish Pattern 40 TSLA Symmetric Triangle Pattern 41 FSLR Cup & Handle Pattern 42 AKAM Symm. Triangle Pattern 43 BA Parabolic Arc Pattern 44 AMBA ABC Bullish Pattern 48

7 BUD AB=CD (Bull) Pattern 49 CRM ABC Bullish Pattern 50 CRZO AB=CD (Bull) Pattern 51 GPS AB=CD (Bear) Pattern 52 IMAX ABC Bullish Pattern 53 JAZZ ABC Bullish Pattern 54 JWN Inv. H&S Pattern 55 PBYI ABC Bullish Pattern 56 PCLN Parabolic Arc Pattern 57 PZZA Parabolic Arc Pattern 58 SPLK Cup & Handle Pattern ABC Bullish Pattern Linear Regression Channel Head and Shoulders Pattern Inv. H&S Pattern Inv. H&S Pattern ABC Bullish Pattern Cup & Handle pattern ABC Bullish Pattern 70 AUDJPY Head and Shoulders Pattern 74 EURAUD Inv. H&S Pattern 75 EURJPY Symm. Triangle Pattern 76 EURUSD Cup & Handle Pattern 77 GBPAUD Cup &Handle Pattern 78 AUDCAD Falling Wedge Pattern 79 USDCAD ABC Bullish Pattern 80 QM Fib. Zone Pivots Gap Chart Gap Chart 90

8 Major Indexes

9 Major Indexes Major Indexes %Chg YTD

10 Chart Patterns & Algorithmic Trader (10) Major Market Indexes Trends All four major market indexes (Weekly) charts are showing strong esix trends.

11 Chart Patterns & Algorithmic Trader (11) Gold, Silver, Oil and 10 Yr Notes Gold regained 200 SMA as it trades higher above 200 MA. Silver and Oil are below its 200 MA and Treasury Notes is just below 200 MA.

12 Chart Patterns & Algorithmic Trader (12) TRAN, VIX, Transportation Index, VIX, U.S. Dollar Index (Weekly) and esix trend indicator.

13 Chart Patterns & Algorithmic Trader Cup & Handle Pattern (D) is trading in Cup & Handle Pattern. Entry above breakout level: , Handle Low: , 28.38% below breakout level. T1: 1451 to 1473 T2: 1535 to 1580

14 Chart Patterns & Algorithmic Trader (W) ABC Bullish Pattern Reviewed in CPAT (W) ABC Bullish Pattern Long Entry above , Stop below (-63.7), Target1 Zone: 1352 to 1407, Target2 Zone: 1565 to 1680

15 Chart Patterns & Algorithmic Trader Bullish Gartley (Crude Oil, Weekly) Futures is trading in Bullish Gartley pattern.

16 Chart Patterns & Algorithmic Trader ABC Bearish Pattern Reviewed in CPAT (10 Yr U.S. Treasury Notes) is trading in ABC Bearish pattern.

17 Chart Patterns & Algorithmic Trader (17) BRTI ABC Bullish Pattern $BRTI (CME s Bitcoin Index) is trading in ABC Bullish Pattern and esix is still weak and below Zero.

18 Chart Patterns & Algorithmic Trader (18) $TRAN ABC Bullish Pattern $TRAN (Daily) ABC Bullish Pattern Long Entry above $ , Stop below $ ( ), Target1 Zone: to , Target2 Zone: to

19 Chart Patterns & Algorithmic Trader (19) Sector ETF Charts Weekly Sector ETF Charts

20 MEDIA Stocks

21 MEDIA Stocks (YTD%)

22 MEDIA Stocks

23 Chart Patterns & Algorithmic Trader (23) CBS H&S Pattern Reviewed in CPAT 09/18/17 CBS (D) is trading in H&S Pattern. Short entry below 61.95, Stop above (- 3.40), Target1 Zone: 56.9 to 55.5, Target2 Zone: 51.6 to 48.7

24 Chart Patterns & Algorithmic Trader (24) DIS Parabolic Arc Pattern $DIS (W) is trading in Parabolic Arc from 07/29/2011 (low: 15.14) to 08/07/2015 (high: ). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode.

25 Chart Patterns & Algorithmic Trader (25) DISCA Head and Shoulders Pattern DISCA (Daily) is forming Head and Shoulders Pattern. H&S Patterns are valid only when price closes below Neckline.

26 Chart Patterns & Algorithmic Trader (26) DIS ABC Bearish Pattern DISH (Weekly) is trading in ABC Bearish Pattern. ABC Bearish pattern entry is below $64 wiith a Stop above $66. Targets are $50, $40. $33.

27 Chart Patterns & Algorithmic Trader (27) NXST Symmetric Triangle Pattern NXST (Daily) is trading in Symm. Triangle pattern.

28 Chart Patterns & Algorithmic Trader (28) TWTR Double Bottom Pattern Reviewed in CPAT 12/18/17 TWTR (Weekly) is trading in a Double Bottom (& Rectangle channel) pattern.

29 Chart Patterns Stocks/Options/Indexes

30 Chart Patterns & Algorithmic Trader (30) SWKS Cup & Handle Pattern Reviewed in CPAT 9/18/17 SWKS (Weekly) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: , Mid Cup Level: 83.69, T1: to T2: to 207.5

31 Chart Patterns & Algorithmic Trader (31) AMD ABC Bullish Pattern Reviewed in CPAT 1/1/18 AMD (Daily) ABC Bullish Pattern Long Entry above $11.68, Stop below $10.62 (- 1.05), Target1 Zone: 13.2 to 13.9, Target2 Zone: 15.9 to 17.4

32 Chart Patterns & Algorithmic Trader (32) CYBR ABC Bullish Pattern Reviewed in CPAT 1/1/18 CYBR (Daily) ABC Bullish Pattern Long Entry above $42.15, Stop below $40.62 (- 1.53), Target1 Zone: 45.8 to 47.2, Target2 Zone: 51.3 to 54.2

33 Chart Patterns & Algorithmic Trader (33) CYBR Symm. Triangle Pattern Reviewed in CPAT 1/1/18 CYBR (Daily) is trading in Symmetric Triangle pattern.

34 Chart Patterns & Algorithmic Trader (34) TSCO ABC Bullish Pattern TSCO (Daily) ABC Bullish Pattern Long Entry above $67.21, Stop below $63.64 (- 3.57), Target1 Zone: 80.9 to 85.6, Target2 Zone: 99.1 to 108.9

35 Chart Patterns & Algorithmic Trader (35) RL Cup & Handle Pattern Reviewed in CPAT 1/29/18 RL (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: , Mid Cup Level: 90.03, T1: to T2: to 191.7

36 Chart Patterns & Algorithmic Trader (36) ADSK ABC Bearish Pattern ADSK (Daily) is trading in ABC Bearish pattern. ADSK Entry is below $116. Target range: $97-102

37 Chart Patterns & Algorithmic Trader (37) GILD Cup & Handle Pattern GILD (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: 86.37, Mid Cup Level: 78.16, T1: 96.3 to 99.0 T2: to 112.5

38 Chart Patterns & Algorithmic Trader (38) UA ABC Bullish Pattern Reviewed in CPAT 1/29/18 UA (Daily) ABC Bullish Pattern Long Entry above $12.12, Stop below $11.40 (- 0.72), Target1 Zone: 14.7 to 15.6, Target2 Zone: 18.2 to 20.0

39 Chart Patterns & Algorithmic Trader (39) UTX ABC Bullish Pattern UTX (Daily) ABC Bullish Pattern Long Entry above $117.64, Stop below $ (-1.35), Target1 Zone: to 127.4, Target2 Zone: to 139.3

40 Chart Patterns & Algorithmic Trader (40) ATHN ABC Bullish Pattern ATHN (Daily) ABC Bullish Pattern Long Entry above $126.36, Stop below $ (-4.22), Target1 Zone: to 142.3, Target2 Zone: to 163.6

41 Chart Patterns & Algorithmic Trader (41) TSLA Symmetric Triangle Pattern TSLA (Weekly) is trading in Symmetric Triangle pattern. TSLA s Symmetric triangle breakout level is at $248. Targets: $ , $398, $

42 Chart Patterns & Algorithmic Trader (42) FSLR Cup & Handle Pattern Reviewed in CPAT 1/8/18 FSLR (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: 74.39, Mid Cup Level: 49.93, T1: to T2: to 153.2

43 Chart Patterns & Algorithmic Trader (43) AKAM Symm. Triangle Pattern Reviewed in CPAT 2/5/18 AKAM (Weekly) is trading in Symmetric Triangle Pattern.

44 Chart Patterns & Algorithmic Trader (44) BA Parabolic Arc Pattern Reviewed in CPAT 1/15/18 $BA (W) is trading in Parabolic Arc from 02/12/2016 (low: ) to 02/16/2018 (high: ). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode.

45 Earnings Companies releasing earnings in the next few weeks.

46 February Earnings Calendar

47 March Earnings Calendar

48 Chart Patterns & Algorithmic Trader (48) AMBA ABC Bullish Pattern AMBA (Daily) ABC Bullish Pattern Long Entry above $48.66, Stop below $46.08 (-2.58), Target1 Zone: 62.3 to 66.7, Target2 Zone: 79.3 to 88.5

49 Chart Patterns & Algorithmic Trader (49) BUD AB=CD (Bull) Pattern BUD (Daily) completed AB=CD pattern.

50 Chart Patterns & Algorithmic Trader (50) CRM ABC Bullish Pattern Reviewed in CPAT 2/12/18 CRM (Weekly) ABC Bullish Pattern Long Entry above $73.71, Stop below $66.42 (-7.29), Target1 Zone: 86.1 to 91.5, Target2 Zone: to 118.1

51 Chart Patterns & Algorithmic Trader (51) CRZO AB=CD (Bull) Pattern CRZO is trading in AB=CD (Bullish) pattern.

52 Chart Patterns & Algorithmic Trader (52) GPS AB=CD (Bear) Pattern GPS (W) has completed 100% of extension of AB from C (CD) to complete AB=CD pattern.

53 Chart Patterns & Algorithmic Trader (53) IMAX ABC Bullish Pattern Reviewed in CPAT 1/1/18 IMAX (Weekly) ABC Bullish Pattern Long Entry above $21.25, Stop below $18.93 (-2.32), Target1 Zone: 24.6 to 26.1, Target2 Zone: 30.6 to 33.8

54 Chart Patterns & Algorithmic Trader (54) JAZZ ABC Bullish Pattern JAZZ (Daily) ABC Bullish Pattern Long Entry above $142.12, Stop below $ (-7.82), Target1 Zone: to 155.7, Target2 Zone: to 178.4

55 Chart Patterns & Algorithmic Trader (55) JWN Inv. H&S Pattern JWN (D) is trading in Inv. H&S Pattern. Long entry above 48.11, Stop below (1.00), Target1 Zone: 54.5 to 56.2, Target2 Zone: 61.2 to 64.8

56 Chart Patterns & Algorithmic Trader (56) PBYI ABC Bullish Pattern PBYI (Weekly) ABC Bullish Pattern Long Entry above $70.55, Stop below $56.10 (-14.45), Target1 Zone: to 141.5, Target2 Zone: to 232.0

57 Chart Patterns & Algorithmic Trader (57) PCLN Parabolic Arc Pattern Reviewed in CPAT 2/12/18 PCLN (W) is trading in Parabolic Arc from 12/24/2004 (low: 18.20) to 08/11/2017 (high: ). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode.

58 Chart Patterns & Algorithmic Trader (58) PZZA Parabolic Arc Pattern Reviewed in CPAT 1/1/18 PZZA (W) is trading in Parabolic Arc from 01/15/2010 (low: 6.39) to 12/23/2016 (high: 90.49). Parabolic Arc patterns are long-term patterns, but most of the upside parabolic patterns return to at least 50-62% of its prior rise in a correction mode.

59 Chart Patterns & Algorithmic Trader (59) SPLK Cup & Handle Pattern Reviewed in CPAT 10/23/17 SPLK (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: 69.33, Mid Cup Level: 61.70, T1: 78.5 to 81.1 T2: 88.4 to 93.6

60 Chart Patterns Futures & Commodities

61 Futures D, W, M, YTD Chg%

62 Futures Weekly Performance

63 Chart Patterns & Algorithmic Trader ABC Bullish Pattern Reviewed in CPAT (Daily) ABC Bullish Pattern Long Entry above $0.7567, Stop below $ ( ), Target1 Zone: to 0.814, Target2 Zone: to 0.881

64 Chart Patterns & Algorithmic Trader Linear Regression Channel Reviewed in CPAT is trading in Linear Regression Channel.

65 Chart Patterns & Algorithmic Trader Head and Shoulders Pattern Reviewed in CPAT (U.S. Dollar Index Futures) is trading in Head and Shoulders Pattern and reached its second target range.

66 Chart Patterns & Algorithmic Trader Inv. H&S Pattern Reviewed in CPAT (D) is trading in Inv. H&S Pattern. Long entry above , Stop below ( ), Target1 Zone: to , Target2 Zone: to

67 Chart Patterns & Algorithmic Trader Inv. H&S Pattern Reviewed in CPAT (D) is trading in Inv. H&S Pattern (F). Long entry above , Stop below ( ), Target1 Zone: to , Target2 Zone: to

68 Chart Patterns & Algorithmic Trader ABC Bullish Pattern OJ (Daily) ABC Bullish Pattern Long Entry above $135.85, Stop below $ (- 3.85), Target1 Zone: to 173.2, Target2 Zone: to 216.9

69 Chart Patterns & Algorithmic Trader Cup & Handle (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: , Mid Cup Level: , T1: to T2: to

70 Chart Patterns & Algorithmic Trader ABC Bullish Pattern Reviewed in CPAT (Weekly) ABC Bullish Pattern Long Entry above $12.255, Stop below $ (-0.735), Target1 Zone: to 13.93, Target2 Zone: to 16.48

71 Chart Patterns FX

72 FX Weekly Performance

73 FX Chg%

74 Chart Patterns & Algorithmic Trader (74) AUDJPY Head and Shoulders Pattern AUDJPY (D) is trading in H&S Pattern (F). Short entry below , Stop above (-1.819), Target1 Zone: to 81.64, Target2 Zone: to 77.59

75 Chart Patterns & Algorithmic Trader (75) EURAUD Inv. H&S Pattern Reviewed in CPAT 10/16/17 EURAUD (D) is trading in Inv. H&S Pattern. Long entry above , Stop below ( ), Target1 Zone: to , Target2 Zone: to

76 Chart Patterns & Algorithmic Trader (76) EURJPY Symm. Triangle Pattern Reviewed in CPAT 10/23/17 EURJPY (Daily) is trading in Symmetric Triangle Pattern.

77 Chart Patterns & Algorithmic Trader (77) EURUSD Cup & Handle Pattern EURUSD (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: , Mid Cup Level: , T1: to T2: to

78 Chart Patterns & Algorithmic Trader (78) GBPAUD Cup &Handle Pattern Reviewed in CPAT 1/1/18 GBPAUD (Daily) is trading in Cup & Handle Pattern. Cup and Handle Patterns are valid only when price closes above Breakout levels. Breakout level: , Mid Cup Level: , T1: to T2: to

79 Chart Patterns & Algorithmic Trader (79) AUDCAD Falling Wedge Pattern Reviewed in CPAT 12/11/17 AUDCAD (Daily) is trading in Falling Wedge pattern. Falling Wedge patterns are bullish when price breaks above the upper trend-line. The price target is computed as the vertical height is added to the breakout level.

80 Chart Patterns & Algorithmic Trader (80) USDCAD ABC Bullish Pattern USDCAD (Daily) ABC Bullish Pattern Long Entry above $ , Stop below $ ( ), Target1 Zone: to , Target2 Zone: to

81 Key Support/Resistance, Pivots

82 Chart Patterns & Algorithmic Trader (82) ES Fib. Zone Fib. Zone Pivots

83 Chart Patterns & Algorithmic Trader (83) NQ Fib. Zone Pivots NQ Fib. Zone Pivots

84 Chart Patterns & Algorithmic Trader (84) QM Fib. Zone Pivots QM Fib. Zone Pivots

85 Chart Patterns & Algorithmic Trader (85) GC Fib. Zone Fib. Zone Pivots

86 Chart Patterns & Algorithmic Trader (86) YM Fib. Zone Pivots YM Fib. Zone Pivots

87 GAP Charts Shows filled and unfilled gap levels

88 Chart Patterns & Algorithmic Trader Gap Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.

89 Chart Patterns & Algorithmic Trader Gap Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.

90 Chart Patterns & Algorithmic Trader Gap Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.

91 Weekly Relative Performances

92 Sector & Indexes Relative Performances Winners: Oil Service, SemiConductors Losers: Gold/Silver, BioTech

93 Dow 30 Weekly Relative Performance

94 Select Sectors Weekly Performance

95 Country ETFs Weekly Performance

96 Commodity ETFs Weekly Performance

97 Watch Lists Momentum Relative Strength Bullish/Bearish Lists NH/NL Oversold/Overbought Key Retracements

98 Sector ETF %DWMY

99 Relative Strength Ranks (200)

100 RS Ranks Sorted (Alpha)

101 Bullish/Bearish List

102 52 Week Highs and Lows

103 D%, W%, M%, YTD%

104 Algorithmic Trading Algo. Techniques Algo. Reports Current Algorithms ALL RETURNS POSTED ON THIS PUBLICATION ARE HYPOTHETICAL PERFORMANCE GENERATED BY COMPUTERIZED SYSTEM AND THEY ARE NOT ACTUAL TRADE REPORTS. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

105 Trading ABC Bearish Patterns by Suri Duddella Symmetry, Harmonics and Patterns Harmonic trading is based on the premise that patterns repeat themselves and the symmetry can be exploited to define the geometric and harmonic relationships between price and time-swings using Fibonacci ratios. Harmonic price movements produce symmetric rallies and decline to give traders an advantage to determine the key turning points (pivots) and well defined and repeatable chart patterns. One of the simplest and most universal chart patterns is ABC Chart pattern. Please see "Trading ABC Chart patterns" with a bullish ABC pattern example in December 2016 Modern Trader magazine. Here I will discuss ABC Bearish chart pattern with a recent example. The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. These "Harmonic" patterns help traders to identify buying and selling opportunities in all markets and in all time-frames. The ABC and AB=CD patterns are first described by H.M. Gartley in his book "Profits in the Stock Market." (1935). The main advantages of trading harmonic patterns are that they allow traders to determine risk vs. reward ratios beforehand as they forecast key market turning points and profit targets for traders. In this article, I will describe how to trade 'ABC' chart patterns. The ABC pattern (can be a continuous or reversal pattern) and it is shaped like a lightning bolt. Identification The key point in identifying an ABC and AB=CD patterns is to correctly detect the A, B, and C key inflection (Pivot) points in a chart while they are forming. These inflection points are determined from key swing highs and lows of various levels, and for its correction waves to determine distinct "swings." The potential C point is usually forecasted by the fib. retracements (0.38 to 0.618) of AB Swing. Once A, B, and C points (and AB, BC legs) are identified, a projection algorithm is applied to compute the Potential Completion Zone (PCZ). This PCZ area is where ABC pattern is expected to complete and may signal continuation of its trend in the first trend direction (AB). Following the completion of BC leg, the projections of AB and BC legs (using fib. ratios) are plotted (from C) to generate targets. The ABC pattern is traded in the trend direction of AB from C to D. Conditions: The swing legs (AB and BC) in ABC pattern are generally in symmetrical proportions both in price and time with consistent slopes. The tradable CD leg has a harmonic relation with symmetry for AB and BC swings. The ABC bullish structures are formed after a prolong prior down trend or consolidation trends, whereas bearish ABC patterns are formed after a prior uptrend. Pattern Detection A Pattern Completion Zone (PCZ) is computed using AB swing and Fibonacci ratios ( % of AB). This PCZ area is where 'C' pivot is formed at the end of BC swing and to signal completion of ABC pattern. Trade Entry: After ABC pattern is completed, it is advisable to wait for the pattern to confirm a reversal signal using any momentum based indicator or price confirmation mechanisms. I use various confirmation and trade entry methods, but one of the methods is price crossing 2-bar high after 'C' in ABC Bullish pattern or a 2-bar low after 'C' in ABC bearish pattern.

106 Stop: A Stop is placed few ticks below C (in Bullish) or few ticks above C (in Bearish) levels. The first target range is set at and second target range is set at 105 to (127%- 162%). Targets: The ABC Pattern targets are computed using the AB and BC swings. The height pattern (AB) is used to project target levels from C-level using fib. ratios. The first target zone is (62-79% AB) from 'C' and second target zone is ( % AB). A secondary target level is set at 100% AB Level at Key Ideas to Remember: The Fibonacci relationships help and give ideas an approximate area (PCZ) where the pattern may complete. Precise ratio levels for reversals or targets in patterns are very rare and a tolerance ratio of +/- 2% is added for the fib. ratios. Pattern confluences with other patterns, support/resistance areas, MAs and other market context elements must be used to identify and validate the pattern structure. Example: The following example shows the auto-generated ABC Bearish pattern in current Live Cattle futures (LC) daily chart. After a steep rise in LC futures from February to May of 2017, prices may have formed a top as it builds an ABC Bearish pattern. Here are few key points on how it is traded. LC was in a steep uptrend from Feb. '17 to May '17. In May 2017, LC formed its first leg (AB) as the prices declined (in 8-sessions) from to From mid-may to June, LC attempted to rally back and formed its second leg (BC) from to In June 1st week, prices reversed again from "C" as LC prices started to fall in the same direction as AB leg. "C" pivot retracement of 77.46% completes ABC Bearish pattern. A Short-entry was triggered as price closed below Entry with a Stop

107 Examples

108 Plato Algo. Performance Report (02/23/18) Short/Medium Term, Not for Sale or Lease.

109 Monty Algo. Performance (02/23/2018) Long Term, NOT for Lease or Sale

110 Symbols Universe

111 Symbol Universe of Stocks/ETFs

112 Symbols Universe

113 Books/Websites/Software

114

115 Poster 24 x 36 (100 lb. Gloss Paper) 30 illustrated patterns with Entries, Stops and Targets Pattern Conditions & Trading Rules $19.95 (FREE Shipping in the US) surinotes.com PATTERNS PRODUCTS RESEARCH BLOG Please send comments and suggestions to surinotes@gmail.com