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Expansion of movements
1
Up Trend
Up Trend breakdown
Down Trend
Breakout
Breakdown
Up Trend
Up Trend Higher Lows Higher Highs Higher Openings (occasionally) Pullbacks between 38% - 62%
Variations include B
3 Parallel 1 2 Diverge
E
3 Converge 1 2 1
H
2
C A
Flags
D
Wedges & Broadening Patterns
G
Triangles
Down Trend
Down Trend Lower Highs Lower Lows Lower Openings (occasionally) Rally between 38% - 62% P
2 Diverge 1 3
Variations include J K
2 Parallel 1 3
M N
2 1 Converge
Q
3
L
Flags
O
Wedges & Broadening Patterns Triangles
Variations include
d
Range
f
Consolidation Congestion
Up Trend breakdown
Up Trend Higher Lows Higher Highs Higher Openings (occasionally) Pullbacks between 38% - 62%
B
2 1
D D
3
B
4
1 2 3 4 1
B
2
D
3 4
C E
Higher High & Pivot Low
C A
2X Top & Pivot Low
A
Lower High & New Pivot Low
E A
Down Trend Lower Highs Lower Lows Lower Openings (occasionally) Rally between 38% - 62%
A
1 2
E C
3 4
A C
2 3
A
1
E C
2 3 4
D
B
Lower High & Higher Pivot Low
B
Lower High & Lower Pivot Low
B
Lower High & Equal Pivot Low
2 1
Breakout
1. Sideways Price Action 2. Occur in any Phase 1. Optimal entry for Phase 1 2. Favorable in early Phase 2 3. Three (3) potential entry points 1. Lowest risk entry 2. Higher risk entry 3. Moderate risk entry 4. Additional weight of evidence essential for trading setups 1. Volume Analysis 2. Candlestick Bar Analysis 5. Pullback can comeback into prior range and form higher pivot low
Breakdown
1. Sideways Price Action 2. Occur in any Phase 1. Optimal entry for Phase 3 2. Favorable in early Phase 4 3. Three (3) potential entry points 1. Lowest risk entry 2. Higher risk entry 3. Moderate risk entry 4. Additional weight of evidence essential for trading setups 1. Volume Analysis 2. Candlestick Bar Analysis 5. Rally(s) can come back into prior range and form lower pivot high
P3
T2-3
T3-4
P2
P4
Intraday
P1
Transition from Phase 1 to 2
T1-2
T4-1
P1