Head and Shoulder Pattern

The head and shoulders pattern is good way to show that BULLISH will lead the way, and very famous among short sellers. Short sellers are people who get profit from downtrend, sell now buy next day!

It forms when candlestick creates three peaks, but the middle peak must higher than the other peaks, after that the candlestick drops. Then make line which connecting the bottom of the two points.

First stock is stay sideways. Investors start to buy when they think that stocks are undervalued, then they hurries to buy, because stock has run to high investors get fear and sell it. After that Investors realize get back again and buy more till get new high, then sell for profit taking. The last, buyer can not stand against seller so stock price has small tiny up and get down below sideways points. Looks picture below :

How to get gain from Head Shoulder pattern. You must used short sell. Short sell when price move below neck line, and buy it when it reach the bottom (Same distance between neck and head).

This can be GOOD for warning that stock will be BULLISH. MORE longer the periodic which formed The Head Shoulder Pattern more definitive BULLISH will happened!!

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Ascending and Descending Triangle Pattern

When a price increase and try to break resistance and can not break it two times but still in BULL position, that The Ascending Triangle Pattern. To make Ascending Triangle pattern you must draw two lines, first line its resistance line, and second lines is diagonal line which trace the series of ascending troughs. Check picture below :

When a price decrease and try to break support and can not break it two times but still in BEAR position, that The Descending Triangle Pattern. To make Descending Triangle pattern you must draw two lines, first line its support line, and second lines is diagonal line which trace the series of descending troughs. Check picture below :

I have to tell you that this two type of triangle pattern is good for short and medium term. Because they break very fast, just need only 2 or 3 weeks. You can buy and hold only for one weeks or two weeks. Target price, many of trader who used this pattern have 7 to 10% gain!! But you can HOLD MORE THAN A MONTH IF THE VOLUME TWICE THAN AVERAGE, you can gain almost 25% or more!!!

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Symmetrical Triangle

Symmetrical Triangle pattern in stock market formed when a stocks price vacillating up and down and covering towards a single point. Its back and forth oscillations will become smaller until the stock reach critical price, breaks out of the pattern, and moves drastically up or down. When investors are unsure of stocks value, The symmetrical triangle formed.

If jump UP, stock market will become BULLISH. If jump DOWN, stock market will become BEARISH.

To form Symmetrical Triangle pattern, draw two lines. First from top or high prices, second from bottom or low prices. That should form a triangle, where the peak is in the right side!!

Watch for :

1.Sideways movement before breakout. Break up=BULL. Break down=BEAR!

2.Watch The Volume, the greater the volume the greater certainty of successful!

3.You can sell or buy when it reaches 3 / 4 of the way from break point.

As with all patterns, knowing when to get out is as important as knowing when to get in. Your

target price is the safest time to sell, even if it looks like the trend may be continuing.

For symmetrical triangles, sell your stock at a target price of:

1.Entry price plus the pattern’s height for an upward breakout.

2. Entry price minus the pattern's height for a downward breakout

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