Forex Power Strategy

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5tnck Pnwcr 5tratcgy
TradIng GuIdc
This pioducl Slock Iovei Slialegy, vhich incIudes aII viillen naleiiaI conlained vilhin lhis docunenl, lhe cuslon
indicalois vilh aII of lhe vaiious sel up conlinalions, heieinaflei caIIed lhe syslen is and aie copyiighl piolecled. You
lhe puichasei of lhe syslen aie gianled soIe peisonaI use of lhe syslen. You nay nol copy, hiie oi seII oi in any olhei vay
pionuIgale any pail oi pails of lhe syslen vilhoul piioi viillen and docunenled consenl of lhe ovneis of lhe syslen.
U.S. Coveinnenl equiied iscIainei - Connodily uluies Tiading Connission uluies and Oplions liading has Iaige
polenliaI ievaids, lul aIso Iaige polenliaI iisk. You nusl le avaie of lhe iisks and le viIIing lo accepl lhen in oidei lo
invesl in lhe fuluies and oplions naikels. on'l liade vilh noney you can'l affoid lo Iose. This is neilhei a soIicilalion noi
an offei lo uy/SeII fuluies oi oplions. No iepiesenlalion is leing nade lhal any accounl viII oi is IikeIy lo achieve piofils
oi Iosses siniIai lo lhose discussed on lhis vel sile. The pasl peifoinance of any liading syslen oi nelhodoIogy is nol
necessaiiIy indicalive of fuluie iesuIls.
CTC UL 4.41 - HYIOTHLTICA O SIMUATL ILOMANCL LSUTS HAVL CLTAIN IMITATIONS.
UNIKL AN ACTUA ILOMANCL LCO, SIMUATL LSUTS O NOT LILSLNT ACTUA TAINC.
ASO, SINCL THL TALS HAVL NOT LLN LXLCUTL, THL LSUTS MAY HAVL UNL-O-OVL
COMILNSATL O THL IMIACT, I ANY, O CLTAIN MAKLT ACTOS, SUCH AS ACK O IQUIITY.
SIMUATL TAINC IOCAMS IN CLNLA AL ASO SU}LCT TO THL ACT THAT THLY AL LSICNL
WITH THL LNLIT O HINSICHT. NO LILSLNTATION IS LINC MAL THAT ANY ACCOUNT WI O IS
IKLY TO ACHILVL IOIT O OSSLS SIMIA TO THOSL SHOWN.
All Rights Reseiveu 2uu9-2u11 StockChaitPatteins.oig Page 1
Wc!cnmc tn 5tnck Pnwcr 5tratcgy!
WeIcone and lhank you foi ieading lhe Slock Iovei liading slialegy. You
have laken lhe fiisl slep lovaids slock liading success and financiaI
independence.
In lhe nexl chapleis you viII Ieain lhe nechanics of liading. You viII Ieain
poveifuI selups vhich viII le lhe souice of youi liading incone and gains.
These palleins and selups veie lesled foi decades of yeais and aie
nalhenalicaIIy pioven as a Ieading indicaloi of piice lehavioi. You nay have
heaid aloul sone of lhe palleins lhal you viII Ieain - hovevei, lheie is a
gieal diffeience lelveen idenlifying lhe palleins and liading lhen.
WhiIe idenlifying lhe palleins is easy, liading is nol inluilive. Theie aie nany
diffeienl vays of liading lhe sane pallein - lul onIy a fev viII acluaIIy Iead
lo a posilive oulcone in lhe Iong lein. You nay have liaded sone of lhe
pallein lhal you viII Ieain in lhis look - lul I assuie you, lhe liading nelhods
desciiled heie aie lhe nosl poveifuI ones foi suivivaI and success in lhe
naikels.
A wnrd nf warnIng: You shouId nol legin piaclicing lhis syslen on ieaI
noney. Slail ly liading in a deno accounl (nosl liokeis gianl you one, fiee)
and onIy shifl lo ieaI noney aflei nonlhs in vhich you aie consislenlIy
piofilalIe. o nol le lenpled lo liade lhe slialegy on ieaI noney iighl avay,
lul piaclice and inpioved sIovIy unliI ieaching lhe IeveI of a naikel pio.
You aie one slep cIosei lo ieaching liading success. You nay le skeplic, lul
ve encouiage you lo iead lhe look lhoioughIy lefoie ieaching a concIusion.
Iiaclice lhe slialegies and le open-ninded - you shouId see lhe diffeience in
youi liading aflei a veiy shoil line.
If you have any queslions, sone pallein is nol 1 cIeai oi you need noie
expIanalions, do nol hesilale lo conlacl us al
suppoil Slock Iovei.con
To youi success,
The Slock Iovei Slialegy Tean
Gcncra! TradIng Cnnccpts
efoie expIaining chail anaIysis and liading selups, you need lo Ieain a fev
concepls lhal viII keep youi liading soIid and pievenl you fion doing coslIy
nislakes. You nay aIieady le faniIiai vilh lhese concepls - iead lhen
anyvay. You nusl inleinaIie lhese concepls, as lhey shouId foIIov you no
nallei vhal slialegy you enpIoy al lhe naikels.
RIsk:Rcward
iskevaid is an inpoilanl naikel concepl. asicaIIy, iskevaid is lhe
ialio lelveen vhal you gain and vhal you iisk in any liade. SinpIy pul, il is
lhe ialio lelveen youi lake piofil sie and slop Ioss sie. This concepl has an
enoinous effecl on youi liading.
You shouId onIy lake liades vhose iskevaid is alove , neaning lhal you
gain lvice lhe anounl you iisk in any liade. The ieason foi such denand is
sinpIe in any liading slialegy, even lhe lesl one you shouId expecl lelveen
and hil iale. Sone of lhe lesl slialegies vin aloul haIf lhe liades - lul
lhe liadei is sliII piofilalIe. This is due lo a good iskevaid - any gain
conpensales foi lhe Iosing liades and oveiaII, lhis Ieads lo a posilive laIance.
In any selup you viII Ieain in lhis look, a slop Ioss and lake piofil Iocalions
viII le specified. These nunleis aie lhe iesuIl of piice-aclion and aie nol
ieIaled lo youi noney nanagenenl oi 'hov nuch can you affoid lo Iose' -
lhey aie lased onIy on lhe piice. Aflei you caIcuIale youi slop Ioss |cca|icn,
caIcuIale lhe iskevaid ly dividing lhe lake piofil sie in youi slop Ioss
sie. If lhe nunlei is leIov - do nol enlei lhe liade. The naikel has nany
oppoilunilies lo offei, and you shouId nol conpionise on liades.
Mnncy Managcmcnt fnr ChampInn Tradcrs
Money nanagenenl is anolhei highIy inpoilanl concepl - one lhal has an
enoinous effecl on diavdovns and naigin caIIs.
As ve have pieviousIy nenlioned, you shouId expecl lelveen - hil
iale, depending on youi IeveI of expeiience and knovIedge of lhe naikels.
The noie anaIysis and liading expeiience you Ieain, youi hil iale viII inciease
and you viII vin noie liades. ue lo lhis hil iale, you nay have a slieak of
Iosses - even 4 and Iosses in a iov. This has nolhing lo do vilh youi slialegy
oi youi liading - il is sinpIy a iesuIl of lad Iuck. In 1 cases, youi nexl
liades viII le vinneis and conpensale foi lhese Iosses.
Hovevei, if you iisk 1- of youi accounl on any singIe liade, such slieaks
viII kiII youi accounl and you viII nol le alIe lo iecovei. Theiefoie you ieach
lhe iuIe of Money Managenenl in oui slialegy
nu shnu!d nn!y rIsk 13% nf ynur accnunt nn any sIng!c tradc
You nay have heaid lhis iuIe hundied lines lefoie, lul il is anaing lo see
hov nany good liadeis faiI lo conpiehend lhis concepl - and don'l
undeisland vhy lhey aie viped oul again and again, despile gieal enliies and
liades. This is lhe oplinaI liade sie foi oui slialegy and nosl slialegies you
viII liade - as il viII keep youi yieId high and viII Iinil youi diavdovns al
lhe sane line.
Anolhei inpoilanl concepl lhal is ieIaled lo youi stnp !nss
In lhis slialegy you viII Ieain hov lo pIace slop Ioss foi each selup. This slop
Ioss is caIcuIaled iegaidIess of youi IeveI of iisk oi youi equily, and is lased
soIeIy on piice-aclion. Aflei slop Ioss is sel, caIcuIale youi liade sie so you
achieve lhe peicenl of iisk you liade vilh. oi exanpIe youi slop Ioss is 1
poinls, and youi equily is 1,. You vish lo iisk of youi equily in lhis
liade, so you enlei liade vilh Iols - so youi iisk is , oi . This is highIy
inpoilanl, so nake suie lhal you undeisland il coiieclIy Youi slop Ioss has
nolhing lo do vilh youi posilion sie oi equily - il is deleinined onIy ly
piice-aclion and voIaliIily. Once slop Ioss is sel, you shouId sel liade sie
accoidingIy, lo achieve lhe desiied IeveI of iisk.
MIndsct nf WInncr Tradcrs
This is lhe finaI concepl ve viII expIain lefoie leaching you lhe liading
selups. Hovevei, il is sliII inpoilanl no nallei hov oi vhal you liade.
Tiading is onIy anaIylicaI and nenlaI - so a naoi pail of youi vai
in liading viII nol le againsl lhe naikel, lul againsl youiseIf. I viII nov
piesenl you lhe nosl inpoilanl concepls in liadei nindsel.
The nain concepl of lhe liadei nindsel deiives fion lhe fiisl concIusion
iegaiding lhe hil iale. In any syslen oi slialegy, you nay face slieaks of 4-
Iosses in a iov. This is lhe ieaIily of liading and you have lo face il.
Hovevei, piofessionaI liadeis knov lhal lhese slieaks have nolhing vilh lheii
liading pioficiency oi aliIilies. They aie sinpIy lhe iesuIl of lenpoiaiy lad
Iuck. Whal nosl novices do in such silualions, is slailing lo queslion
lhenseIves lhey lhink aloul changing lheii liading slialegy, adding
indicalois oi confiinalions, oi conpIeleIy changing lheii syslen. They do nol
undeisland lhal lheii syslen is fine - and lhese Iosses aie a pail of liading
ieaIily. They aIlei lheii syslen aflei any Ioss, aining lo achieve 1 hil iale.
1 hil iale is nol achievalIe, as in any line one lank can lake a liade
againsl youi diieclion and nake lhe naikel diop poinls in a second. Theie
is no vay you can anlicipale such noves, so pIease slop liying.
Whal you need lo undeisland heie is sinpIy aIvays slick lo lhe slialegy. o
nol change il no nallei hov nuch you Iose. on'l voiiy, if you liade lhis
slialegy, youi vinning viII le , even 4 lines lhe Iosses. Again, do nol change
lhe syslen. Il has pioven ilseIf foi a hundied yeais and viII conlinue foievei,
so enoy youi knovIedge and liade lhe syslen as nechanicaIIy as you can.
You nusl have conpIele, undoulled confidence in youi slialegy and ils
piofilaliIily. You cannol Slail lack lesling. Once you see lhal lhe Slock
Iovei Slialegy has leen piofilalIe foi lhe Iasl 1 yeais you aie guaianleed lo
have noie failh in il. This is lhe one connon eIenenl of aII vinning liadeis
lhey knov lhal lheii slialegy is piofilalIe, and do nol change il iegaidIess of
lheii iecenl peifoinance. So shouId you.
You shouId handIe Iosses as lhey aie a 'inninenl pail of doing lusiness'.
Think of il as pIain cosl If you aie luiIding a hone, vouId you feeI soiiy
aloul having lo pay foi naleiiaIs IiolalIy nol. So you shouId nol feeI soiiy
aloul liading Iosses - as lhey aie lhe cosl of pailicipaling in liading.
These concepls aie highIy inpoilanl, so I suggesl you iead lhis chaplei lvice.
Aflei ieading lhen, pioceed lo Ieaining lhe lasics of chail anaIysis in lhe nexl
chaplei.
Chart Ana!ysIs
In lhis chaplei I viII leach you lhe lasics of chailing - lhe veiy foundalion ve
viII luiId on in lhe nexl chapleis. You nay knov lhese piincipIes lul I sliII
insisl lhal you iead il, especiaIIy lhe pail iegaiding cn|rq |ining.
You viII Ieain
Whal is 5uppnrt and RcsIstancc
Hov lo diav 5uppnrt and RcsIstancc IeveIs coiieclIy
Hov lo diav trcnd!Incs
Whal aie Brcaknuts and Pu!!backs
Hov To TImc Lnliies
5uppnrt and RcsIstancc
These ideas aie al lhe veiy coie of Chailisn and TechnicaI AnaIysis, and
aInosl aII chail palleins invoIves lhen in sone vay. We viII nov define
Suppoil and esislance and desciile lhe vays lhey nay appeai in lhe
naikels.
5uppnrt and RcsIstancc aie psychoIogicaI IeveIs vhich piice has difficuIlies lo
lieak. Many ieveisaIs of liend viII occui on lhese IeveIs.
When a ceilain IeveI is difficuIl foi piice lo cioss upwards - il is caIIed
RcsIstancc.
When a ceilain IeveI is difficuIl foi piice lo cioss dnwnwards - il is caIIed
5uppnrt.
The haidei foi piice lo cioss a ceilain IeveI, lhe sliongei il is and lhe
piofilaliIily of oui liades viII inciease. Try tn tradc nn !cc!s that prIcc
stnppcd nn at !cast twIcc.
The nosl lasic foin of Suppoil and esislance is hnrIznnta!. LxanpIes
Iiice lounces off hoiionlaI esislance IeveI al lhe ov
Iiice lounces off hoiionlaI esislance IeveI
Sliong hoiionlaI Suppoil IeveI
HoiionlaI Suppoil IeveI al 1.
Sliong hoiionlaI IeveIs aie iound IeveIs - 1.1, 14., 1, elc. These IeveIs
aie usuaIIy pione lo high aclivily fion luyeis and seIIeis, and lheiefoie
usuaIIy cause ieveisaIs in piice.
An inleiesling phenonenon can occui vhen piice lieaks a psychoIogicaI
IeveI 5uppnrt IeveI can transfnrm inlo RcsIstancc, and vice veisa. This
knovIedge gives you lhe povei lo piedicl piice ieveisaIs. LxanpIe
Suppoil IeveI luined inlo esislance aflei lieakoul
Anolhei visuaI iepiesenlalion of Suppoil and esislance is dynamIc - lhe
Trcnd!Inc. This is a sIoped Iine vhich is difficuIl foi piice lo peneliale. Theie
aie suppnrt trcnd!Incs and rcsIstancc trcnd!Incs - depending on lheii
posilion in ieIalion lo piice.
LxanpIes foi liend Iines
ynanic Suppoil liendIine al Ciligioup Slock. Il is a suppoil IeveI as il is lhe Iovei lound
of piice
ynanic esislance liendIine in LUUS. Il is a iesislance IeveI lecause il is lhe uppei
lound of piice
ynanic Suppoil al AII Slocks
ynanic esislance ine
AII lhe chail palleins ve viII covei in lhis look consisl of liend Iines and
psychoIogicaI IeveIs. Sludy lhese exanpIes veII and lesl youi knovIedge ly
idenlifying liend Iines in youi liading pIalfoin.
Brcaknut and Pu!!back
Oui liading decisions viII le lased on aclions lhal piice can peifoin in
ieIalion lo liend Iines. Theie aie scenaiios lhal piice can peifoin
ieakoul
IuIIlack
I viII nov expIain each scenaiio and denonsliale in chails.
Brcaknuts
ieakouls occui vhen piice lieaks a suppoil oi iesislance IeveI. They aie
usuaIIy acconpanied vilh high voIune and lig novenenl of piice. We viII
nnt liade lhese signaIs.
LxanpIes foi lieakouls
ieakoul of a dynanic esislance IeveI
ieakoul of dynanic Suppoil IeveI
ieakoul of esislance liendIine
ieakoul signaIs alliacl nany inexpeiienced liadeis lhal nislakenIy lhink lhal
lhe ieakoul is a piofilalIe signaI.
ieakoul is usuaIIy an unieIialIe signaI vhose conlinualion is doullfuI. Iiice
nay appeai lo lieak a ceilain IeveI lul viII cIose leIov il - lhis is knovn as
'akeoul'. This happens a Iol, especiaIIy vhen liading in snaII line-fianes
(day liading). When liading slocks, you can liade lieakouls, lhough you viII
suffei fion lhe sane diavlack lhese signaIs have.
This diavlack is lhe inaliIily of pIacing a slop Ioss al a IogicaI Iocalion. When
enleiing on a lieakoul, ve don'l knov vheie lo pIace lhe slop Ioss, as piice
can ieliace, louch oui slop Ioss oidei (cIosing oui liade) and conlinue in lhe
oiiginaI diieclion. In oidei lo pIace a slop Ioss il nusl le fai fion piice - lhus
decieasing oui piofilaliIily.
We viII nov desciile lhe nain signaI ve viII liade, one vilh highesl povei
and ieIialiIily.
Pu!!backs
IuIIlacks occui vhen piice ie-louches a Suppoilesislance pieviousIy
lioken. This is one of lhe highesl quaIily signaIs and ve viII liade lhen in
nany chail palleins.
LxanpIes foi puIIlacks
Iiice lioke Suppoil liendIine, lhen ie-louched il - and conlinued dovn
IuIIlack aflei lieakoul of esislance. Nole lhe slienglh of lhe novenenl and
lhe piecise ieveisaI signaI.
Iiecise puIIlack aflei lieakoul of esislance liendIine
Nole lhal puIIlacks shouId occui al fev lais aflei lhe lieakoul. If lhe puIIlack
doesn'l occui quickIy ve viII discaid il as a polenliaI liade. This is lecause
psychoIogicaI IeveIs lend lo Iose lheii ieIialiIily as lhey lecane oIdei. AIvays
ain lo liade nevesl liend Iines and discaid lhe oId ones.
The puIIlack is an exlieneIy sliong liading signaI, vhich iesuIls in fiequenl
vinning liades. This is enpoveied ly lhe facl lhal vhen liading puIIlacks,
ve aie acluaIIy liading vilh lhe pievaiIing liend The lieakoul lhal cane
lefoie lhe puIIlack confiined lhe slienglh of lhe liend - and enhances lhe
quaIily of oui signaI.
Thc Pattcrns
We viII nov desciile each pallein and selup lhal you viII liade in lhe Slock
Iovei Slialegy. oi each pallein, ve viII desciile lhe Iogic lehind lhe
pallein, hov il is idenlified, liaded and vheie lo lake piofils.
Pattcrn 1 - Thc nub!c Tnp
The doulIe lop is a popuIai chail pallein lhal is iesponsilIe lo nosl of liend
ieveisaIs. Il is aIso caIIed lhe 'M' pallein, as ils shape iesenlIes lhe Iellei M. Il
is lhe nosl popuIai chail pallein of aII, and appeais in nosl OLX paiis,
Connodilies and Slocks. Il is aIso lhe easiesl pallein lo spol and liade.
You nay have heaid aloul lhis pallein - I encouiage you lo foigel aII you
have Ieained. You viII Ieain heie lhe nosl soIid and piofilalIe nelhod of
liading lhe oulIe Top, and I encouiage you nol lo liade il in any olhei
nelhod as il is lhe nosl consislenl one.
HIt Ratc: . Aflei puIIlack of lhe liades ieach lhe pioecled laigel.
Appcarancc: The doulIe lop is ciealed vhen piice louches lhe sane
esislance IeveI lvice. SinpIy pul, piice louches lhe sane piice IeveI lvice,
unalIe lo lieak lhiough il. Iiice nay cieale a suppoil IeveI oc|uccn lhe lvo
lops - caIIed lhe neckIine.
LvenluaIIy, piice lieaks dovnvaids and a leaiish liend legins.
LxanpIes of oulIe Tops
The neckIine IeveI is diavn on lhe chails.
Psychn!ngy: uyeis have liied lo lieak lhe IeveI lvice, each line vilhoul
success. Aflei lhese lvo lines lhe seIIeis have denonslialed lheii slienglh
and lhey push piice dovn inlo a ieveisaI of liend.
Al lhe fiisl lop lhe luyeis sliII have slienglh and allenpl lo lieak lhe high
IeveI again. Hovevei, al lhe second lop lhe seIIeis aie gaining slienglh and
push piices dovnvaids. Nole unliI lhe piice has nol lioken lhe neckIine, lhe
pallein is nol yel vaIidaled. In sone cases piice lesls lhe IeveI again, foining a
TiipIe Top.
Hnw tn Tradc: WhiIe lheie aie seveiaI knovn nelhods of liading lhe oulIe
Top, ve viII concenliale onIy on lhe safesl and nosl piofilalIe one - lhe
puIIlack nelhod. Il is lhe nosl piofilalIe liading nelhod and has lhe highesl
hil iale of aII.
The lasis of lhis nelhod
1. Wail foi piice lo lieak lhe neckIine IeveI.
2. Wail foi piice lo go lack up and |cucn lhe neckIine fion leIov. Il
occuis al aiound of lhe doulIe lops. If il does nol occui, do nol
liade lhis pallein.
3. Wail foi piice lo cieale a leaiish candIe. This candIe is used lo
confiin lhal piice is indeed puIIing lack and conlinuing lhe novenenl
dovnvaids.
4. Aflei a leaiish candIe, enlei Shoil liade.
3. Slop Ioss shouId le pIaced 1 poinl alove lhe highesl high of Iasl 4
candIes. Impnrtant: Youi slop Ioss is nol ieIaled lo youi liade sie, and
is caIcuIaled in lhe foinuIa. Aflei selling lhe slop Ioss, caIcuIale youi
liade sie so youi Ioss viII le lelveen 1- of youi accounl.
6. Take piofil is caIcuIaled in lhe foIIoving nelhod caIcuIale lhe
dislance lelveen lhe highesl high of lhe doulIe lop and lhe neckIine.
This is lhe sie of lhe doulIe lop, and is lhe piofil laigel foi lhe pallein.
Sulliacl lhis anounl fion lhe puIIlack Iocalion, lo gel lhe lake piofil
Iocalion.
You can use lhese iuIes lo liade lhe inveil vaiialion of lhe oulIe Top - lhe
oulIe ollon. AII iuIes and psychoIogy aie lhe sane - usl ieveised. Tiade
diieclion is luIIish.
LxanpIes of liades
Pattcrn 2 - Channc!
The channeI is anolhei popuIai chail pallein lhal is easiIy idenlified -
hovevei il is liaded in a counlei-inluilive nelhod.
HIt Ratc: .
VIsua! Appcarancc: The channeI consisls of lvo paiaIIeI liend Iines lhal
lound lhe piice-aclion. on'l voiiy if you don'l undeisland vhal liend Iines
aie - in lhe exanpIes leIov you viII see nany exanpIes. A channeI is a
pallein lhal indicales a liend, vheie lolh liend Iines aie lolh in lhe sane
diieclion.
Make suie lhal liend Iines aie conpIeleIy paiaIIeI and have lhe sane sIope.
Ialleins lhal have lvo liend Iines lhal aie nol conpIeleIy paiaIIeI aie nol
channeIs and shouId nol le liaded.
IIIuslialions
Hnw tn Tradc: We viII liade channeI in a conliaiian fashion - enliy viII le
nade vhen lhe channeI is lioken in ils opposile diieclion.
Sleps lo liading lhe channeI
1. Wail foi piice lo lieak lhe channeI in ils opposile diieclion. If lhe
channeI is ascending, vail foi a lieakoul dovnvaids. If channeI is
descending vail foi a lieakoul upvaids.
. Wail foi piice lo puII lack lo lhe liend Iine il has lioken.
3. Wail foi a candIe in lhe diieclion of lhe lieakoul. If piice has
lioken upvaids, vail foi a luIIish candIe. If piice has lioken
dovnvaids, vail foi a leaiish candIe.
4. Lnlei a liade in lhe diieclion of lhe lieakoul.
candIes (foi shoil liades), oi 1 poinl leIov lhe Iovesl Iov of Iasl 4
candIes (foi Iong liades). Impnrtant: Youi slop Ioss is nol ieIaled lo youi
liade sie, and is caIcuIaled in lhe foinuIa. Aflei selling lhe slop Ioss,
caIcuIale youi liade sie so youi Ioss viII le lelveen 1- of youi
accounl.
dislance lelveen lhe lvo liend Iines of lhe channeI. This is lhe sie of
lhe channeI, and is lhe piofil laigel foi lhe pallein. If you have enleied a
Iong liade, add lhis anounl lo lhe puIIlack Iocalion. If you have enleied
a shoil liade, sulliacl lhis anounl fion lhe puIIlack Iocalion.
LxanpIes
Channc! 3 - TrIang!c
The liiangIe pallein is anolhei popuIai chail pallein lhal lakes pIace in aII
liaded secuiilies OLX, Slocks and Connodilies. Ils easy idenlificalion
oflen Ieads lo lhinking lhal liading il is easy. On lhe conliaiy - nosl liiangIe
palleins aie veiy iisky and shouId nol le liaded
TiiangIes can le divided inlo lvo faniIies SynneliicaI TiiangIes oi
Asynneliic TiiangIes.
Theie is an unsellIed aigunenl in lhe fieId of lechnicaI anaIysis, vhelhei
synneliicaI liiangIe is a conlinualion oi ieveisaI pallein. The liulh is lhal lhe
odds aie sIighlIy lovaids conlinualion (4) lul lhe snaII edge of 4 is
acluaIIy encouiaging us nnt lo liade lhis pallein.
In lhis slialegy, ve viII liade onIy asymmctrIc trIang!cs vhich aie a lil Iess
fiequenl, lul nuch lellei as an enliy selup.
HIt Ratc: .
VIsua! Appcarancc: The asynneliic liiangIe Iooks Iike a iighl-angIed oi Iefl-
angIed liiangIe. Il has a hoiionlaI lase and a diagonaI liend Iine lhal is
poinled lovaids lhe lieakoul diieclion.
IIIuslialion
Psychn!ngy: The psychoIogy lehind lhe liiangIe is veiy sinpIe lhe diagonaI
liend Iine shovs lhal one side of lhe naikel is gaining slienglh vhiIe lhe
olhei side slands sliII. LvenluaIIy, piice lieaks in lhe diieclion of lhe liend
Iine and lieaks lhe hoiionlaI lase. Inpoilanl The liiangIe is nol confiined
unliI lhe hoiionlaI lase is lioken, as sonelines lhe liend Iine lieaks and lhe
opposile effecl is achieved. So vail foi lhe lase lo lieak lefoie enleiing any
liades.
Hnw tn Tradc: TiiangIes aie liaded in a siniIai fashion lo lhe channeIs lhe
puIIlack. This enliy nelhod is a popuIai one lhal I Iike lo use, as il is a veiy
ieIialIe and has veiy high vin iale.
Sleps lo liading lhe liiangIes
1. Wail foi piice lo lieak lhe hoiionlaI IeveI of lhe liiangIe.
. Wail foi piice lo puII lack lo lhe hoiionlaI IeveI.
. Wail foi a candIe in lhe diieclion of lhe lieakoul. If piice has
candIes (foi Iong liades).
dislance lelveen lhe hoiionlaI IeveI and lhe nosl exliene poinl of lhe
diagonaI liend Iine. This is lhe sie of lhe liiangIe, and is lhe piofil laigel
foi lhe pallein. If you have enleied a Iong liade, add lhis anounl lo lhe
puIIlack Iocalion. If you have enleied a shoil liade, sulliacl lhis anounl
fion lhe puIIlack Iocalion.
LxanpIes foi liading
Pattcrn 4 - AsymmctrIc Mcgaphnnc
An asynneliic negaphone is lhe opposile pallein lo lhe negaphone -
inslead a liend Iine vhich poinls lo lhe hoiionlaI IeveI, in lhese palleins lhe
liend Iine expands and poinls oulside of lhe hoiionlaI IeveI.
HIt Ratc: 4.
I!!ustratInn:
The Asynneliic Megaphone pallein usuaIIy lieaks aflei louches on lhe
liend Iines. The diieclion of lhe lieakoul is nol decisive - il nay le lo lolh
diieclions. Hovevei, as ve onIy oin liade aflei a lieakoul, ve don'l need lo
guess lhe diieclion.
Sleps lo liading lhe liiangIes
1. Wail foi piice lo lieak a liend Iine of lhe negaphone.
2. Wail foi piice lo puII lack lo lhe lioken liend Iine.
. Wail foi a candIe in lhe diieclion of lhe lieakoul. If piice has
candIes (foi Iong liades).
. Take piofil is caIcuIaled in lhe foIIoving nelhod caIcuIale lhe
dislance lelveen lhe hoiionlaI IeveI and lhe nosl exliene poinl of lhe
diagonaI liend Iine. This is lhe sie of lhe liiangIe, and is lhe piofil laigel
foi lhe pallein. If you have enleied a Iong liade, add lhis anounl lo lhe
puIIlack Iocalion. If you have enleied a shoil liade, sulliacl lhis anounl
fion lhe puIIlack Iocalion.
Examp!cs nf tradcs:
Cnnc!usInn
Thank you foi ieading lhis liading slialegy. Il is oui hope lhal you viII piofil
fion lhe slialegies lhal you have Ieainl, as ve do.
If you have any queslions, sone pallein is nol 1 cIeai oi you need noie
expIanalions, do nol hesilale lo conlacl us al.
To youi success,
The Slock Iovei Tean

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