patterns. StockSharp

Using Candlestick Patterns ️ in StockSharp

2024-09-26T10:31:23Z

Candlestick patterns are one of the most common tools in technical analysis. They help traders recognize potential market movements based on combinations of candles on the price chart. In this article, we will explore what candlestick patterns are, how to use them in trading, and what features the StockSharp platform offers for working with them.

What Are Candlestick Patterns?

Candlestick patterns are specific combinations of Japanese candlesticks that indicate possible changes in market dynamics. Each candle displays information about the opening price, closing price, high, and low over a specific time period. By analyzing sequences of these candles, traders can draw conclusions about market sentiment and potential points of reversal or trend continuation.

How to Use Candlestick Patterns in Trading?

Using candlestick patterns allows traders to:

Identify trends: Determine the direction in which the market is moving—upward, downward, or in a flat state.
Recognize reversal signals: Find moments when the current trend may change.
Confirm trading decisions: Use patterns in combination with other indicators for more justified trades.
It's important to understand that candlestick patterns are not guaranteed signals but serve as an additional tool for market analysis.

StockSharp's Capabilities for Working with Candlestick Patterns

The StockSharp platform provides extensive functionality for working with candlestick patterns, making this process intuitive and flexible.

Easy Addition of Indicators

Adding a candlestick pattern indicator in the StockSharp terminal is very simple:

Click on the button in the form of tiles:

The Pattern Editor will open, where you can select from a list of existing patterns or create your own.

Candlestick Pattern Editor

The Pattern Editor in StockSharp allows you to:

Create your own patterns: Set unique combinations of candles that match your trading strategies.
Adjust parameters: Change the conditions for pattern formation, such as candle length, their ratio, and other characteristics.
Save and load patterns: Manage your templates for quick access in the future.

Visualization on the Chart

After adding a pattern, it will be displayed directly on the price chart, which allows you to:

Quickly identify necessary formations: Instantly see signals without the need for complex analysis.
Improve decision-making: Visual representation of patterns contributes to more prompt and well-founded actions.

Integration with Strategy Designer

Candlestick patterns in StockSharp are available not only for manual trading but also for automation:

Usage in Designer: Include patterns in automated strategies without the need to write code.
Examples of free strategies: Check out our free strategy, demonstrating the application of candlestick patterns in automated trading.

Conclusion

Candlestick patterns are a powerful tool in a trader's arsenal. Understanding and correctly applying these patterns can significantly enhance trading efficiency. The StockSharp platform provides all the necessary tools for working with candlestick patterns, making the analysis and trading process more convenient and productive.

Trend in technical analysis

2022-10-30T13:41:48Z

💥💥In technical analysis, the concept of trend plays a crucial role in understanding and analyzing market behavior. A trend refers to the general direction in which the price of an asset or market is moving over a specific period of time. It helps traders and analysts identify the overall market sentiment and make informed trading decisions. Here's how trends are typically analyzed in technical analysis:

👉 1. Uptrend: An uptrend occurs when the price of an asset is consistently making higher highs and higher lows. It indicates a bullish market sentiment, with buyers dominating and pushing the price higher. In an uptrend, traders look for opportunities to buy or go long on the asset, expecting the upward movement to continue.

👉 2. Downtrend: A downtrend, on the other hand, is characterized by the price of an asset consistently making lower highs and lower lows. It indicates a bearish market sentiment, with sellers dominating and pushing the price lower. In a downtrend, traders look for opportunities to sell or go short on the asset, expecting the downward movement to continue.

👉 3. Sideways or Range-bound: In certain market conditions, the price of an asset may move within a defined range, without showing a clear upward or downward trend. This is often referred to as a sideways or range-bound market. Traders in such situations may look for trading opportunities within the range, buying near support levels and selling near resistance levels.

👉 4. Trendlines: Trendlines are drawn on price charts to visually represent the direction and strength of a trend. An uptrend is identified by drawing a line connecting the higher lows, and a downtrend is identified by drawing a line connecting the lower highs. Trendlines can act as dynamic levels of support and resistance and help traders gauge the potential continuation or reversal of a trend.

👉 5. Moving Averages: Moving averages are widely used technical indicators that help smooth out price fluctuations and identify trends. The most commonly used moving averages are the simple moving average (SMA) and the exponential moving average (EMA). Traders analyze the relationship between the price and moving averages to determine the presence and strength of a trend.

👉 6. Trend indicators: Various technical indicators are specifically designed to identify trends and provide signals to traders. Examples include the Average Directional Index (ADX), Moving Average Convergence Divergence (MACD), and the Parabolic SAR. These indicators use mathematical calculations based on price data to determine trend strength and potential trend reversals.

💥💥By analyzing trends in technical analysis, traders aim to identify potential entry and exit points, determine the risk-reward ratio of a trade, and make decisions that align with the prevailing market sentiment. It's important to combine trend analysis with other technical indicators, chart patterns, and fundamental analysis to get a comprehensive view of the market before making trading decisions.

Simple Bar chart pattern commonly used in technical analysis.

2022-10-29T19:09:08Z

Simple Bar Chart Pattern

Before you delve into the different types of bar charts, let"s talk about some simple ones. With a few bars before In fact, these simple patterns There is not much interest in technical analysis. Maybe because it"s too simple that we think it doesn"t matter. But these patterns There are many The concept is quite close to the Japanese Candlestick, so knowing some of this pattern would not be damaged. Whether to use it or not is another matter.

Upside Reversal (R+) and Downside Reversal (R-)

***It is a form of short-term change in direction. By relying on only 2 bars plus short-term trends of the past data.

Upside Reversal is a case where the trend is short-term. The past of the price is trending down. And today"s low is less than yesterday"s low, but today"s close is higher than yesterday"s close show that there has been Trying to push the price even lower than yesterday. Simple Bar Chart Pattern there was buying momentum in during the day. This allows the closing price to move higher. More than yesterday There is a chance that the market will rebound to an upward trend in the short term.

Downside Reversal is the same as Upside Reversal, just the opposite. In other words, the short-term trend is an uptrend and today"s high is higher than yesterday"s high. But today"s close is lower than yesterday"s close.

Key Upside Reversal (KR+) and Key Downside Reversal (KR-)

This is a special case of Upside and Downside Reversals, which gives a stronger signal. That is to say, in the case of the Key Upside Reversal, unless today"s low is lower than yesterday"s low. But today"s close is higher than yesterday. As in the case of Upside Reversal, today"s high is also higher than yesterday"s high.

Likewise, in the case of Key Downside Reversal, one additional condition is required: today"s lowest price must be Below yesterday"s low

***Some technical analysts say that the KR+ and KR- provide accurate signals. If during the KR birth date there is a strong trading volume and noticeably higher But some people are not so strict with this rule. Especially when using the KR with other technical tools.

Close on High (COH) and Close on Low (COL)

Close On High is when today"s close is very close to the high of the day. Range from the highest price down to the closing price, no more than 10% of the highest price to the lowest price. Observed from today"s close near the high price.

Close On Low is the same as today"s close has closed near its lowest. It can be observed from the range from the closing price. Come for the lowest price no more than 10% of the highest price range find the lowest price.

***The importance of COH and COL depends on the length of the rod. Note that the longer the bars, the more COH and COL are important. However, the COH and COL signals are very weak. But if combined with other signals for example, R+, R-, KR+, KR- can also be used as a confirmation signal for a short-term change in direction. In addition, if COH and COL two days are combined, it will get another signal which will be discussed in the next topic.

High to Low Close Signal (HLC) and Low to High Close Signal (LHC)

High to Low Close Signal is when the first day of birth Close on High (COH) and the second day Close on Low (COL) immediately follow. This signal indicates that the market is likely to go down (Bearish). The Low to High Close signal is Conversely, the first day of COL was born and the second day immediately COH was born, the latter signal indicating that attempts to bring down the price on the first day were unsuccessful on the second day. It also encountered a force in the opposite direction. It is likely a signal of a change in direction.

***In addition, the HLC and LHC will provide a more accurate signal. If its form occurs simultaneously with R or KR

3 Highs (3H+) and 3 Lows (3L-)

This is a simple pattern: if today"s close is the highest price for the last 3 days" closing price, it’s a 3H+ which is a Bullish Signal. Below the 3 day closing price will be 3L- which is a bearish signal. In fact, 3H+ and 3L- are suitable for use in conjunction with cyclical analysis. Especially when born The signal is close to the transition phase of the cycle.

Creating a Bar Chart for Technical Analysis

2022-10-28T17:05:43Z

💥Technical analysts consider charts as essential tools for generating profits. Therefore, before delving into the process of reading charts and identifying various patterns, it is crucial to understand the fundamental principles of chart creation.

💥By grasping the basics of chart creation, analysts can interpret price movements accurately and effectively. This understanding lays the foundation for recognizing patterns and making informed trading decisions.

💥So, before exploring the intricacies of chart patterns, it is essential to familiarize oneself with the principles underlying chart construction. This knowledge empowers analysts to navigate the charts with confidence and derive meaningful insights from the price data presented.

💥You may have come across a technical analysis chart, which consists of multiple horizontal bars intersecting each other. These bars vary in size, representing statistical information about price movements over a specific period. Each bar corresponds to a time period, such as a day, and is referred to as a "bar" in technical analysis. Hence, this type of chart is commonly known as a Bar Chart.

💥The length of each bar is determined by the trading range, i.e., the difference between the highest and lowest prices during that period. A long bar indicates a significant price swing, suggesting a highly active market on that day. Conversely, a day with minimal price movement results in a shorter bar. In cases where the price remains constant throughout the day (or there is only one trade), the bar appears as a single point since the highest and lowest prices are the same.

💥The closing price is denoted by a small notch on the right-hand side of the bar. It helps us determine whether the closing price is closer to the day's high or low. Additionally, the opening price is represented by a protrusion on the left-hand side of the bar. This visual arrangement allows us to compare the opening and closing prices easily. By observing the information contained within these bars, we can gain valuable insights, which are more accessible than examining raw data. When these bars are organized by trading days, we obtain a Bar Chart that provides even more comprehensive information for analysis.

💥Creating a bar chart is an essential step in technical analysis as it provides valuable information and insights into the price movement of a security over a specific period. Here are some key reasons highlighting the importance of bar charts in technical analysis:

👉1. Price Visualization: Bar charts visually represent price data, allowing traders and analysts to observe the historical price movements of a security. They provide a clear and concise way to understand price trends, patterns, and changes over time.

👉2. Time-Series Analysis: Bar charts display the price data in a sequential manner, showing the opening, closing, high, and low prices for each time period (e.g., day, week, month). This sequential arrangement enables the analysis of price behavior and the identification of trends, reversals, and patterns.

👉3. Price Patterns: Bar charts help identify various price patterns, such as trendlines, support and resistance levels, chart patterns (e.g., head and shoulders, double tops/bottoms), and candlestick patterns. These patterns provide insights into potential future price movements and assist in making informed trading decisions.

👉4. Volume Analysis: Bar charts often incorporate volume data alongside price data. Volume represents the number of shares or contracts traded during a given period. By analyzing volume patterns alongside price movements, traders can assess the strength or weakness of a trend and determine the level of market participation or investor interest.

👉5. Technical Indicators: Bar charts serve as the foundation for many technical indicators used in technical analysis, such as moving averages, oscillators, and momentum indicators. These indicators rely on the historical price data provided by bar charts to generate signals and help traders identify potential entry and exit points.

👉6. Timeframe Analysis: Bar charts can be constructed using various timeframes, such as minutes, hours, days, or weeks. This flexibility allows traders to analyze price movements at different levels, from short-term intraday trading to longer-term trend analysis.

👉7. Historical Comparison: Bar charts enable the comparison of current price levels and patterns with historical data. By studying past price behavior and market reactions, traders can gain insights into how similar patterns or levels have influenced price movements in the past and make educated predictions about future price action.

💥💥In summary, creating a bar chart is crucial in technical analysis as it provides a visual representation of price data, helps identify patterns and trends, incorporates volume analysis, serves as a basis for technical indicators, allows for timeframe analysis, and facilitates historical comparisons. These insights assist traders and analysts in making informed decisions and formulating effective trading strategies.

Basic technical analysis for trading.

2022-10-26T16:47:43Z

👩‍🎓 🧑‍🎓 "Technical analysis" is a method of studying stock behavior by analyzing charts to forecast future price trends. Technical analysts examine stock behavior based on price and trading volume (or trading value), considering them as important sources of information for technical analysis.

💥However, the strategies used in technical analysis are not formulated without principles. In fact, they are based on three concepts or beliefs:

1. Price Behavior Reflects All Information: According to this concept, the price of a stock reflects all relevant information. Economic, political, and other changes that impact supply and demand in the stock market will affect the price. Since the price is determined by the interaction of supply and demand, positive changes lead to increased demand surpassing supply (greater buying pressure than selling pressure), resulting in price increases. Conversely, negative changes lead to increased supply surpassing demand (greater selling pressure than buying pressure), leading to price declines.

👩‍🎓 🧑‍🎓 However, technical analysts primarily focus on price and volume data for analysis. This approach narrows the scope of study compared to fundamental analysis, which delves into the causes behind price changes. While analyzing fundamentals, the driving forces behind changes in supply and demand are thoroughly examined. Both approaches aim to solve the problem of determining the direction of stock prices, although they differ in their analytical models.

2. Price Trends Continue Until Reversal: This concept suggests that a price trend will persist until there is a confirmed reversal. The preceding explanation provides a complete understanding of this concept. For instance, if you throw a ping-pong ball into the air (where the ping-pong ball represents a stock price), you can observe that the ball will continue moving upward, following the initial direction of the throw. However, over time, the momentum gradually weakens, and the ball starts to slow down due to various reasons. Eventually, the upward momentum exhausts, and the ping-pong ball starts to fall. Therefore, the movement of the ping-pong ball, from the throw until just before it starts to fall, represents an upward trend. After the end of the upward trend, the direction changes to a downtrend when the ball begins to fall.

💥It is important to note that technical analysis and fundamental analysis ultimately aim to determine the direction of stock prices, although they employ different analytical approaches. Technical analysis focuses on price and volume data, while fundamental analysis delves into the underlying causes of price movements. By understanding and utilizing these concepts, technical analysts attempt to make informed predictions about future price trends.

3. Patterns or behaviors observed in the past can be applied in the present and future, reflecting the concept of "history repeats itself." Technical analysis relies on price and volume, which capture the overall effect of available data (information set) for forecasting. Price and volume data serve as indicators of market psychology, such as courage or fear, which remain consistent across different eras. Therefore, patterns that occurred in the past, reflecting the psychology of that time, can still be relevant today. They provide insights and probabilities for the future direction of stock movements.

👩‍🎓 🧑‍🎓 All three concepts mentioned above are fundamental beliefs and form the basis of technical analysis. It is important to understand that these principles are based on underlying ideas. The chart itself is not the cause of stock price fluctuations; it is merely a visual representation. However, through the study of technical analysis, you gain tools to analyze and interpret what the stock price is indicating. It helps you understand the potential direction of price movement and identifies opportunities for trend changes.

Technical analysis using trendlines

2022-11-01T12:16:14Z

💥However, doing the analysis Knowing only the above pattern may not be enough Since sometimes we need to set point of buying and selling point, how do we know when to buy? While the trend is an uptrend, the answer that many people would say would be BUY ON SLOW. I would continue to ask: How much downward is acceptable in an uptrend? The main or method to solve such problems is Using trend lines, this will be your tool. Values for trend analysis From above we have separated the trend into 3 types, so there are 3 types of trend lines to be used as follows:

👉 1. Uptrend line The principle is not difficult at all. That is to say, the beginning We will draw a line from point 1 to point 3 (red dot) leaving the end of the line past point 3. This line is the uptrend line for the significance of this line. Or simply whether the leather is tough enough or not, it starts at the number 5 (red dot), which if the price can rebound at the number 5, that would indicate a significant uptrend line. If the price has adjusted down near this line again. It will use the predicted level on this line. Is the point used in Entering the spoon to receive shares again, such as number 7 (red dot)

👉 2. Downtrend line The principle is reversed from the above in the sense that the line will use the old peak and the new peak as a point in the draw line, starting from point 1 to point 3 (red point) (if observed, it will find that the point 1 and 3 here are the vertices, as opposed to in the case of uptrends, which are the bottoms.) That's the difference in trend line formation. In terms of uptrend and downtrend, the measure of significance is looked at number 5. (red dot) If the stock price fails to cross the up downtrend line and has a downtrend following it, we call this downtrend line significant. This line again at point 7 (red dot) is the level where a sell-off is expected. If point 7 (red dot) still fails to break through the downtrend line, it will strengthen the downtrend line even more.

👉 Parallel line, In addition to the trend line mentioned above There are times when it is necessary to create a parallel line for the reason that there are cases when the price is clearly moving within the framework of the parallel line. Thus giving rise to a technical term came up another word is channel (hereinafter called flow pipe) I don't know if it will make the picture clearer or not? The principle of drawing parallel lines is not difficult at all. From the picture, use point 2 (green dot) as a starting point. Then draw a line parallel to the uptrend line, as shown in the figure, using point 2 (green dot) as the starting point parallel to the downtrend line, which will act as resistance in the uptrend form and will act as a resistance line. Support for downtrend images.

👉 3. Sideways is movement without direction. Is not markedly So the trend line in the case of sideways is relatively smooth, parallel to the ground (flat) and the channel in the case of sideways is like Pipes placed parallel to the floor, see from the picture because it can be seen that the flow of prices or index will be under the formation of a flow that lies horizontally which the price movement along the flow pipe sideways horizontally like this It is the origin of the name sideways.

What is Support and Resistance in trading?

2022-11-05T15:49:03Z

💥Support and resistance are two important concepts in trading that help traders identify potential price levels where an asset may experience buying or selling pressure.

💥Support refers to a price level at which demand for an asset is strong enough to prevent the price from falling further. This level is often seen as a floor, as the price tends to bounce off this level and move higher. Traders use support levels to identify potential buying opportunities or to set stop-loss orders to limit their losses if the price falls below the support level.

💥Resistance, on the other hand, refers to a price level at which supply for an asset is strong enough to prevent the price from rising further. This level is often seen as a ceiling, as the price tends to bounce off this level and move lower. Traders use resistance levels to identify potential selling opportunities or to set profit targets if the price breaks above the resistance level.

💥Support and resistance levels are not fixed, but rather dynamic and can change over time as market conditions and sentiment shift. Traders use various technical analysis tools and indicators to identify these levels and make trading decisions based on them.

💥After considering the movement patterns and time, what traders would like to know next is probably the issue of support and resistance, which can confuse many new traders. However, the principle is simple and can be remembered to apply in practice. The main thing to remember is that support refers to a price level at which demand for an asset is strong enough to prevent the price from falling further, while resistance refers to a price level at which supply for an asset is strong enough to prevent the price from rising further. These levels are dynamic and can change over time, and traders use various technical analysis tools and indicators to identify them and make trading decisions based on them.

"Support doesn't fall & resistance doesn't go up"

"Resist became a receiver & receive becomes resistance."

💥It sounded like an Inner Strength Technique. But don't just say you didn't know about it first. Because I'm going to explain it to you as follows.💥

💥"Support does not fall" means that when the share price weakens to this level, there is buying pressure to support it and drive it back up. The share price has a tendency to rebound from this level. It can also be said that in the past, there was significant demand to buy at this level. Therefore, traders can expect buying pressure to re-enter at this price level, making it a support line. This is similar to the cost price of the first purchase, and subsequent purchases after the market trend changes will be higher than this level.

💥"Resistance does not go up" Therefore, traders can expect selling pressure to enter at this price level, making it a resistance line. This is similar to the selling price of the first sale, and subsequent sales after the market trend changes will be lower than this level.

💥"Resistance turning into support" is a phenomenon that occurs when a price level that was previously acting as a resistance is broken through and then later becomes a support level. This happens because the demand for the asset was strong enough to overcome the selling pressure at the resistance level, and once the price breaks through, it indicates that there is even more buying pressure. However, over time, the price may start to weaken, and it may retrace back to test the previous resistance level. At this point, the previous resistance level will act as a support level because there was high demand at that price level in the past. Traders can expect buying pressure to re-enter at this price level because it was an area of interest for the buying forces in the past. This is similar to the cost price of the first purchase, and subsequent purchases after the market trend changes will be higher than this level. Therefore, traders can expect the share price to rebound from the resistance level and become a support line.

💥“Receive become resistant” you can imagine. That the price can break through the support down means that there must be a lot of selling pressure. Up enough to overcome the buying pressure thus pressured the price to weaken. After some time has passed after the weakening of the price, the price begins to turn up. And there has been a climb up at the same support that has just passed. In this case, the support will become the resistance. The breakthrough in the past There is a very high demand to sell at the support until it wins the buying pressure. Therefore, it is expected that selling pressure is likely to return to collapse at this price level again. Because it is the price level that used to be interested in The past from this group of sales force expectation is The decline from the support level to the resistance level now.

Reversal Patterns ( Head & Shoulders )

2022-11-06T16:31:10Z

💥The Head and Shoulders pattern is a popular reversal pattern in technical analysis. It is named after its appearance on the chart, which resembles a head with two shoulders. The pattern indicates a potential reversal of an uptrend and a change in market direction.

💥The Head and Shoulders pattern is formed by three peaks, with the middle peak being the highest. The left and right peaks are almost equal in height, and the pattern is completed when the price breaks below the neckline, which is the level connecting the two troughs between the peaks.

💥Traders often use the Head and Shoulders pattern to identify entry and exit points in a trade. Once the pattern is confirmed, traders may enter a short position, targeting a price decline equal to the distance from the head to the neckline. Stop-loss orders can be placed above the right shoulder to protect against a potential false breakout.

💥💥It's important to note that the Head and Shoulders pattern should not be used in isolation and should be confirmed by other technical indicators and analysis.

💥Reversal patterns are patterns that indicate that the trend that occurred in the past is likely to disappear, and new trends that are opposite of the old are likely to arise. For example, if the previous trend was an uptrend, a reversal pattern indicates that the uptrend is ending, while a downtrend is likely to follow. If the original trend was a downtrend, a reversal pattern would mean that the downtrend is about to end, while an uptrend is likely to follow.

💥From the picture, you can see that the trend was originally an uptrend, with the number of volumes rising accordingly, which is one feature that enhances the movement as an uptrend, before the left shoulder point. After that, it begins to adjust to the bottom (neckline), but you will notice that the number of volumes decreased compared to the previous period. Since many traders still believe that this downtrend is just a minor adjustment in the big uptrend, there are not many stocks to be sold out because they are afraid that if they sell out, they can't buy back (the buyback price will be higher than when it was sold), which is what traders expect. In the next period, the price rebounds from the uptrend line up to the head point, which is higher than the left shoulder point. The number of volumes increases accordingly because everyone is still looking at the picture as an uptrend.

💥After that, it starts to decline again, but at this moment, it can't be said for certain that the first vertex is the left shoulder and the second vertex is the head because it is still in an uptrend. This downward adjustment is down to test the uptrend line again. The initial number of volumes may not be too noticeable, but when it reaches the receiving point on the uptrend line, it appears that the support is not there, and thus, the uptrend line breaks down.

💥Now everyone is starting to realize that there will be a serious downturn, causing a lot of selling resulting in higher trading volume. The price continues to weaken until the bottom of the 2nd trough (neckline) and then starts to gain strength back, causing a rebound in the volume price. However, the number of volumes is not as much as in the past, as everyone is not sure if the downturn will actually happen. There is a possibility of further downward adjustments until the point of the right shoulder, causing a sales force by people who sell at low prices to make a profit first. This point will increase the beliefs of many parties, who may start to see a pattern of the left shoulder head up, and where they are now is most likely the right shoulder. However, to confirm the occurrence of the right shoulder, the bottom point of the shoulder groove (point 2) must not be higher than the first vertex, and the 3rd peak (the right shoulder) must not go above the head (the 2nd peak). This downward adjustment will have a large number of volumes, confirming the decline, especially when it breaks down the neckline.

💥💥One important point to note about the neckline in an uptrend is that it must not have a negative slope to be a real Head & Shoulders pattern.

💥By now, everyone can see that the head & shoulders pattern is perfect. Will they stop playing now? It's unlikely! There are still some groups that know that even head & shoulders can still play out. That is, after discarding the right shoulder point until the price falls through the neckline, in principle, it can be analyzed that the level that falls below the neckline, down to a distance equal to or close to the distance measured from the head down to the neckline, will begin to be targeted. As a result, there may be a rebound, but the number of volumes will not be as much.

💥Because it is a short play, these groups will be prepared to set up a sell-off again at the 4th vertex in order not to go beyond the neckline. The pattern seen after the head is a downtrend.

💥In the case of a trend shift from downtrend to uptrend, the pattern is referred to as a reverse head & shoulders. Before the first and second bottoms, the market is still in a downtrend phase, and stocks are sold in large quantities. During the rebound after the first peak, trading volume is relatively low because traders understand that it is just an uptrend in a big downtrend. However, after the second bottom, traders may believe that the prices are already low enough and start to collect stocks, leading to a continued increase in price. When the price breaks through the resistance of the downtrend line, there will be buying pressure to further strengthen the move, and the number of volumes will increase accordingly. However, the move will still be limited by the neckline, and only the second vertex will be adjusted downwards, leaving a possibility of a right shoulder formation.

💥However, traders know that this downturn is just a temporary adjustment. Since the downtrend line has already been crossed, there is no stock drain. Assuming the right shoulder formation is complete at the 3rd bottom, the right shoulder fissure (the 2nd vertex) cannot be lower than the first bottom point and the right shoulder (3rd bottom point) must not be lower than the head (the 3rd peak). After that, there is another upward movement with buying pressure sweeping into another wave, causing the neckline to break up and being confirmed by the presence of a sufficiently large volume. In the next period, not everyone sells out much because they have begun to believe that the trend has changed from downtrend to uptrend, and that the neckline in this case must not have a negative slope.

What patterns are the buy signals and sell signals technical analysis of support and resistance for traders to see in the Point-and-Figure diagram?

2022-12-04T10:50:42Z

In Point-and-Figure charting, traders can look for several buy and sell signals based on support and resistance levels:

Bullish signal: A buy signal occurs when the price breaks above a resistance level, creating a new column of X's. This indicates that the buyers have gained control and the price is likely to continue to rise.
Bearish signal: A sell signal occurs when the price falls below a support level, creating a new column of O's. This indicates that the sellers have gained control and the price is likely to continue to fall.
Double top pattern: A sell signal occurs when two consecutive columns of X's reach the same level and fail to break above it. This indicates that the buyers are losing momentum, and a reversal may be imminent.
Double bottom pattern: A buy signal occurs when two consecutive columns of O's reach the same level and fail to break below it. This indicates that the sellers are losing momentum, and a reversal may be imminent.
Triple top pattern: A sell signal occurs when three consecutive columns of X's reach the same level and fail to break above it. This indicates that the buyers are struggling to push the price higher, and a reversal may be imminent.
Triple bottom pattern: A buy signal occurs when three consecutive columns of O's reach the same level and fail to break below it. This indicates that the sellers are struggling to push the price lower, and a reversal may be imminent.

👉 Traders can also look for other patterns, such as bullish and bearish flags and wedges, which can provide additional buy and sell signals. However, it's important to note that no single pattern can guarantee success, and traders should use other technical analysis tools and risk management strategies to make informed trading decisions.

💥In this section, we will delve deeper into the patterns of buy and sell signals that can be observed in the Point-and-Figure diagram. There are many patterns that traders use for technical analysis, but we will focus on two examples: the buy signal on the breakout of a triple top and the sell signal on the downside breakout below a bullish support line.

💥Understanding the principles behind buying or selling signals makes it easy for traders to recognize any pattern formation. In the case of a buy signal, a breakout of resistance occurs after the third peak. Breaking through resistance, according to the principles of support and resistance, indicates a buy signal. The next question is how to identify resistance. The answer lies in the peak of the last two X signals, which turn into O signals indicating selling pressure greater than buying pressure, hence forming a resistance line. When the X signal crosses above, it indicates that demand outstrips supply, resulting in the price rising and a buy signal being generated.

💥On the other hand, the sell signal occurs when the price breaks the support line on the downside, indicating that selling pressure is greater than the support along the trend line or that there is an oversupply, which inevitably leads to a price drop. Traders who used to buy along the trend line are unable to continue buying, due to the increase in selling pressure, which triggers further selling. Thus, a sell signal is generated.

💥However, it is important to note that the breakout point may not always result in an immediate buy or sell signal. Moreover, it is said that the ascending triple top gives the most reliable buy signal, while the breakout of the triple bottom gives the most reliable sell signal. But the level of trust in these signals may vary from trader to trader, and it is ultimately up to each trader to determine their own level of confidence in these patterns.

Continuous Patterns (Inverted Head & Shoulders)

2022-11-21T10:41:28Z

💥The inverted head and shoulders pattern is a chart pattern that signals a potential reversal of a downtrend. It is formed by three lows, with the middle low (the head) being lower than the other two (the shoulders). The pattern is complete when a neckline, which is a resistance level that connects the highs between the two shoulders, is broken.

💥The inverted head and shoulders pattern is the opposite of the regular head and shoulders pattern, which is a bearish pattern that signals a potential reversal of an uptrend. The inverted head and shoulders pattern is a bullish pattern that indicates that the price may start moving upwards after a period of decline.

💥Traders can use the inverted head and shoulders pattern to identify potential entry and exit points. Traders may look to enter a long position when the price breaks above the neckline, with a stop-loss order placed below the neckline to limit potential losses. The price target can be determined by measuring the distance between the head and the neckline, and then adding it to the breakout point.

💥As with other chart patterns, traders should use other technical indicators and analysis to confirm their trading decisions. The inverted head and shoulders pattern is not always reliable, and false breakouts can occur. Therefore, it's important to wait for confirmation before making trading decisions.

💥The head and shoulders pattern may sound familiar, as it shares the same name as a reversal pattern, but the meaning here is different. In the previous case, it was a reversal pattern, whereas now it is a continuation pattern. Looking at the picture above, it appears like the head and shoulders pattern in the case of an uptrend, only upside down, indicating a downward trend.

💥However, if the original trend is a downtrend, the occurrence of head and shoulders, with the appearance of the head and shoulders being normal (head and shoulders up, as shown in the picture above), is reversed in the case of a reversal head and shoulders pattern. Therefore, some people refer to the head and shoulders continuation pattern as an inverted head and shoulders pattern because it is upside down in the case of a reversal pattern.

Continuous Patterns (Rectangle)

2022-11-20T18:51:47Z

💥A rectangle is a chart pattern that signals a period of consolidation in the price movement of an asset. The pattern is formed when the price moves between parallel support and resistance levels, creating a rectangular shape on the chart. The support level is the lower horizontal line, while the resistance level is the upper horizontal line.

💥Rectangles can be either a continuation or a reversal pattern. A continuation pattern indicates that the price will likely continue moving in the same direction as the previous trend after the consolidation period ends. A reversal pattern, on the other hand, suggests that the price will reverse its direction after the consolidation period ends.

💥Traders can use the rectangle pattern to identify potential entry and exit points. In a continuation pattern, traders may look to enter a long position when the price breaks above the resistance level, while in a reversal pattern, traders may look to enter a short position when the price breaks below the support level. Stop-loss orders can also be placed below the support level in a long position and above the resistance level in a short position to limit potential losses.

⚡️⚡️As with other chart patterns, traders should use other technical indicators and analysis to confirm their trading decisions. The rectangle pattern is not always reliable, and false breakouts can occur. Therefore, it's important to wait for confirmation before making trading decisions.

💥The rectangle pattern is similar to the triple tops or triple bottoms patterns because it simplifies the explanation. Assuming the original trend is an uptrend, when triple tops are formed, prices retrace until they break through the base line and go down. However, the rectangle pattern is different. After the third peak, there is a downturn, but it appears to rebound from the bottom base line (as pictured), making it look less like triple tops. After careful consideration, prices continue to move up until they break through the resistance line, indicating that the rectangle pattern is a continuation, not a reversal like triple tops. Some may say that the rectangle pattern is no different from a sideways movement, which is probably correct, but let me tell you that there are some observations to distinguish between triple tops or triple bottoms and rectangles. Triple tops or triple bottoms are formed with a wider channel than the rectangle's channel. In other words, the up and down motion is more intense in the case of triple tops or triple bottoms than in rectangles.

💥If you understand the rectangle pattern in an uptrend, understanding the downtrend rectangle pattern should be easier. Just change the observation point from the bottom point to the top point, as shown in the example image.

Continuous Patterns (Flags and Pennants)

2022-11-18T09:46:17Z

💥Flags and Pennants are two chart patterns that can occur during a trend, typically after a significant price movement. They are classified as continuation patterns as they suggest that the previous trend is likely to continue after a brief consolidation.

💥Flags are characterized by a rectangular shape that is formed between two parallel trend lines. The trend lines are drawn to connect the highs and lows of the price movement, creating a flagpole and a flag. The flagpole is the initial price movement, while the flag is the consolidation period that follows. The price tends to break out of the flag in the direction of the previous trend, and traders can use this breakout as a signal to enter or exit a trade.

💥Pennants are similar to flags, but they have a triangular shape that is formed by converging trend lines. The trend lines are drawn to connect the highs and lows of the price movement, creating a pennant pole and a pennant. The pennant pole is the initial price movement, while the pennant is the consolidation period that follows. The price tends to break out of the pennant in the direction of the previous trend, and traders can use this breakout as a signal to enter or exit a trade.

💥💥It's important to note that while chart patterns can be useful in identifying potential trading opportunities, they are not foolproof and should be used in conjunction with other technical indicators and analysis to make informed trading decisions. Additionally, false breakouts can occur, and traders should use stop-loss orders to limit their losses in case the breakout fails.

💥Let me explain the characteristics of flags and pennants. Flags can be thought of as a rectangular flag that is fluttering, while pennants are like a fluttering flag, but in a triangular shape.

💥As shown in the figure above, flags and pennants are a correction of the original trend. For instance, if the original trend is an uptrend, when flags or pennants are formed, the price weakens in a retracement manner before continuing to move in the direction of the uptrend. The movement of the volume traded usually follows the same trend as the price movements. When the volume is rising, the number of volumes also increases, while the number of volumes decreases when the volume is resting. Moreover, the time it takes for flags and pennants to form is usually no more than three weeks.

The example pictures below show flags formed during a big trend and another figure that shows the emergence of patterns, which can occur at any time. From the examples, you can see that the price movement before and after the flag is still in the same direction. That is, if the trend is an uptrend, the price still moves upward, and if it is a downtrend, the price still moves downward.

Continuous Patterns (Broadening Formation And Diamond)

2022-11-17T12:51:48Z

💥Broadening formation, also known as megaphone or expanding triangle, is a chart pattern characterized by two trend lines that are diverging from each other. The top trend line represents the resistance level, while the bottom trend line represents the support level. The pattern is considered a reversal pattern as it suggests that the previous trend is coming to an end, and the price is likely to move in the opposite direction.

💥Broadening formation can be identified by looking for at least two highs and two lows that are spaced out, creating the diverging trend lines. The price tends to move back and forth between the trend lines until it breaks out above or below one of the trend lines. Traders can use this breakout as a signal to enter or exit a trade, depending on the direction of the breakout.

💥Diamond, also known as a rhombus, is a chart pattern that occurs when the price is trading within a range and forming a diamond shape. The diamond pattern is formed by four trend lines that connect a series of higher highs and lower lows, creating the diamond shape.

💥The diamond pattern is considered a continuation pattern, meaning that the previous trend is likely to continue after the pattern is completed. Traders can identify a diamond pattern by looking for a series of higher highs and lower lows that are forming the diamond shape. The price tends to break out of the pattern in the direction of the previous trend, and traders can use this breakout as a signal to enter or exit a trade.

💥It's important to note that while chart patterns can be useful in identifying potential trading opportunities, they are not foolproof and should be used in conjunction with other technical indicators and analysis to make informed trading decisions.

💥Broadening Formation is characterized by the widening of the price range as it forms, similar to the swaying of a ship. As shown in the picture above, this pattern is typically classified as a Continuation pattern, but due to its erratic nature, it may occasionally result in reversal patterns instead of continuation patterns, as shown in Figure 2.

When the two patterns, Triangle and Broadening, are combined, they create another pattern called Diamond. However, this pattern is a reversal pattern rather than a continuation pattern.

Continuous Patterns (Descending Triangle)

2022-11-15T15:28:03Z

💥A descending triangle is a chart pattern in technical analysis that is formed when the price of an asset moves within a converging range, with a downward-sloping trend line at the top and a horizontal support line at the bottom. This pattern is a bearish continuation pattern, which means that it is likely to result in the continuation of an existing downtrend once the pattern is broken.

💥To identify a descending triangle pattern, traders look for a horizontal support line and a downward-sloping trend line that connects at least two highs. The support line should be roughly flat, while the trend line should slope downwards. These lines should converge towards a point.

💥Traders often look for a breakout below the support line to confirm the pattern, as this indicates that sellers have gained enough momentum to push the price below the support level. They may also use other technical indicators and analysis to confirm the direction of the breakout and determine potential entry and exit points for trades.

💥Once the price breaks out of the descending triangle pattern, it is likely to continue moving downwards, with a potential price target equal to the height of the pattern subtracted from the breakout point. However, if the price fails to break out and instead rises above the downward-sloping trend line, the pattern is considered to be invalidated.

💥Descending Triangle (see picture) is similar to triple bottoms, but the difference is that new tops are present during the formation of the pattern. For example, top 3 is below top 2 and top 2 is below top 1. This pattern is a correction before continuing to decline following the pattern of a downtrend.

💥In the example shown in the picture, past volume price movements have formed a descending triangle, including finding targets. When the price reaches the target level, the stock price has a noticeable rebound. During the formation of the pattern, there was a time when the support line flattened, which can be seen as a downtrend during that period. However, the volume price returned to the range of the pattern once again before falling off. The support level is somewhat more complete.

💥If the rules of Fibonacci numbers are applied, it can be seen that the weakening of the volume price comes down to test the flat support line, which is about two-thirds of the way from the base to the top. It will be even more possible that the volume price at that time dropped really come down!

Continuous Patterns ( Symmetric triangle )

2022-11-13T13:39:04Z

💥A symmetric triangle is a type of continuous pattern in technical analysis that occurs when the price of an asset moves within a converging range, forming two trend lines that meet at a point. This pattern indicates a period of consolidation in the market, where neither buyers nor sellers have enough momentum to push the price in a definitive direction.

💥Symmetric triangles are considered a continuation pattern, which means that they are likely to result in a continuation of the previous trend once the pattern is broken. If the trend was bullish, the price is likely to continue moving upwards after breaking out of the triangle. If the trend was bearish, the price is likely to continue moving downwards after breaking out of the triangle.

💥To identify a symmetric triangle pattern, traders look for two trend lines that connect at least two highs and two lows. The upper trend line connects the highs, while the lower trend line connects the lows. These lines should be roughly parallel to each other and converge towards a point.

💥Traders often look for a breakout above the upper trend line or below the lower trend line to confirm a continuation of the previous trend. They may also use other technical indicators and analysis to confirm the direction of the breakout and determine potential entry and exit points for trades.

💥If you look at the image above, you can see that the original price trend was an uptrend. However, at point 1 (green line), the price dropped down to point 1 (red line), providing an opportunity for buyers to enter the market and causing the price to rebound back up to point 2 (green line). But selling pressure pushed it down again to point 2 (red line), forming a triangular pattern. It's called a symmetric triangle because the trend line passes through the apex point (green line) and the trend drawn through the bottom of the pattern (red line) forms equal angles with the plane. The point where the green and red lines meet is called the apex. When the price breaks through the triangle, the trend is likely to continue in an uptrend, and the break usually occurs two-thirds of the way from the apex to the base. However, if it breaks past that point, the probability of a break up or break down becomes equal, and it may cause a reversal.

💥After a break up, it can be analyzed that the price may continue to go up to a distance equal to the base of the triangle or from the apex point up to the same distance. Another popular method is to draw a line parallel to the red line from point 1 (green line), which can also be used as another target line.

💥Using the example of the chart image above, we can see a volume price movement that forms a symmetric triangle. Some parts of the price fall off the lower boundary of the triangle, but if we observe it carefully, we can see that the closing price can move back into the pattern, so we can still consider this as a symmetric triangle pattern.

What is Continuous Patterns?

2022-11-12T17:18:34Z

💥Continuous patterns are chart patterns that indicate that the price of an asset is likely to continue moving in the same direction as the current trend. These patterns are characterized by a series of price movements that are similar in shape and direction to each other.

💥There are two main types of continuous patterns: the bullish and bearish patterns. Bullish patterns indicate that the price is likely to continue moving upwards, while bearish patterns suggest that the price is likely to continue moving downwards.

💥Some common examples of bullish continuous patterns include the ascending triangle, the bull flag, and the cup and handle pattern. Bearish continuous patterns include the descending triangle, the bear flag, and the head and shoulders pattern.

💥Traders often use these patterns to help them make decisions about when to enter or exit trades. It is important to note, however, that not all patterns will be successful and other indicators and analysis should also be used to confirm the trend before making a trade.

💥Continuous patterns are very important in technical analysis as they provide valuable information about the trend of an asset. By identifying and analyzing these patterns, traders and investors can make informed decisions about when to buy or sell an asset.

💥For example, if an uptrend continuation pattern is identified, traders may consider buying the asset as it is likely to continue its upward trend. Conversely, if a downtrend continuation pattern is identified, traders may consider selling the asset or shorting it as it is likely to continue its downward trend.

💥It's worth noting that not all continuous patterns are reliable and some may result in false signals. Therefore, it's important to use other technical indicators and analysis to confirm the trend before making a trade based on a continuous pattern.

💥Continuous patterns can be considered as a break in the trend, where the price moves in a different direction before continuing in the same trend. This can be an opportunity to analyze the market sentiment and determine if the old trend will continue. There are various types of continuous patterns, including triangle patterns such as symmetry, ascending, and descending, as well as flags and pennants.

💥Flags and pennants are named after their shapes, with flags resembling a square flag and pennants looking like a triangular flag. These patterns can indicate a pause in the market before the trend resumes, and traders often use them to identify potential buying or selling opportunities. Overall, continuous patterns are important in technical analysis as they can help traders anticipate price movements and make more informed trading decisions.

Reversal Patterns ( Saucer )

2022-11-10T12:54:24Z

💥The Saucer pattern is a bullish trend reversal pattern that is characterized by a gentle and rounded bottom formation on a chart. It is also known as the "rounded bottom" pattern. The pattern indicates a shift in market sentiment from bearish to bullish.

💥The saucer pattern consists of a downward trend followed by a period of consolidation, and then an upward trend. The consolidation period forms the rounded bottom of the saucer. During this time, trading volume is typically low as traders wait for a clear indication of market direction.

💥Once the saucer pattern is complete, the price typically experiences a strong bullish breakout. This breakout is often accompanied by high trading volume, which confirms the bullish trend reversal. The saucer pattern can be seen on any time frame, but it is more reliable on longer-term charts.

💥It is important to note that the saucer pattern is not always a perfect semicircle, and the length of the pattern can vary. Additionally, it is always recommended to use other technical indicators and analysis methods in conjunction with pattern recognition to make trading decisions.

💥Let's move on to the next saucer pattern. How can you recognize this pattern? Think of a coffee cup saucer (in fact, a saucer refers to a soup dish that is deeper than a normal dish, but not so deep that it becomes a bowl). So, what's the connection? There's no direct correlation, but this pattern resembles a coffee cup saucer.

💥Take a look at the picture above and imagine a coffee cup saucer placed upside down. The left side of the saucer represents an upward price movement, but at a decreasing rate. The bottom of the plate is flat, which means the price movement during this period will look like sideways. The right-hand side of the saucer shows a declining price curve, indicating a pattern to change the trend from an uptrend to a downtrend. Let me explain it more clearly.

💥You can see that the price has climbed up over time before entering a period of decreasing rate movement to the sideways, and during this period, the number of volumes traded has not confirmed the upward movement. The trading volume will gradually decrease, which is a bad signal. When the price enters a declining period, it appears that there have been many sell-offs, which can be seen from the increasing trading volume while the price is dropping.

💥Now, let's imagine the saucer placed face up to support a coffee cup. Its shape is curved, as seen in the picture above. On the left-hand side, the trading volume will adjust down, and the number of volumes traded will gradually decrease accordingly because traders begin to see that the price drop is relatively low. When they sell, they may have to buy at a higher price than before. As for the bottom of the plate, buying pressure starts to come in, and the price rebounds somewhat noticeably.

💥After that, there is a short-term weakening due to taking profits (take profit) because traders want to stock up again before chasing the price to move upwards. The price moves up with the confirmation of an increasing trading volume and eventually breaks free from the sideways to continue moving in an uptrend. Thus, the uptrend saucer is a pattern that occurs during a trend shift from a downtrend to an uptrend.

Reversal Patterns (Triple Tops & Triple Bottoms)

2022-11-07T16:14:42Z

💥Triple Tops and Triple Bottoms are reversal patterns that appear on price charts. They occur when the price of an asset creates three consecutive peaks or troughs at approximately the same level. Triple tops occur during an uptrend, indicating a possible trend reversal, while triple bottoms occur during a downtrend, signaling a potential shift in trend direction.

💥In a triple top pattern, the first peak represents a resistance level that the price is unable to break through, causing it to decline to a support level. The second peak shows a renewed attempt to break through the resistance level but is again rejected, leading to another decline to the support level. Finally, the third peak fails to surpass the resistance level, and the price declines below the support level, signaling a potential downtrend.

💥In a triple bottom pattern, the first trough represents a support level that the price cannot break through, causing it to rise to a resistance level. The second trough shows a renewed attempt to break through the support level, but it is again rejected, leading to another rise to the resistance level. Finally, the third trough surpasses the support level, and the price rises above the resistance level, signaling a potential uptrend.

💥Traders usually confirm the pattern by looking at the trading volumes during each peak or trough. Higher trading volumes at the peaks and troughs indicate stronger support and resistance levels. The neckline, which connects the peaks or troughs, is also essential. A break below the neckline in a triple top pattern or above the neckline in a triple bottom pattern confirms the pattern, and traders may initiate trades based on the anticipated trend reversal.

💥Let's discuss triple tops first. Broadly speaking, it refers to when the volume price tries to break through a horizontal resistance but fails to do so, resulting in a subsequent correction. It may be difficult to understand this concept just by listening to it. Therefore, let's try to delve deeper and look at some visuals.

💥In the figure above, let's say the price is moving up and reaches the top 1. Then, there is a sell-off that causes a decline to the bottom 1. However, the trading volume during the bottom 1 is still not significant because everyone thinks it is a minor correction in a major uptrend. They want to buy, and the price continues to rise until it reaches close to top 1 again. Traders have confidence that it will continue to move in an uptrend, and the trading volume during this period is quite large.

💥As mentioned above regarding the meaning of resistance, the price moved down from the second top and continued to flow down to the second bottom, which is a support line. Traders' expectations remain that there may be a rebound. Therefore, during the second bottom line, the volumes appearing are less than during recent uptrends because there is still a concern that after selling, it cannot be repurchased (bought back at a higher price than it was sold). However, when it comes to actually moving up to the third top, some traders are starting to worry because it has failed to pass through it twice before. Therefore, they do not dare to buy to pursue. The number of volumes in this period is seldom different from the last period, so when it reaches the third top, it is quite brittle. A downward adjustment is likely to occur. It can be seen that the price attempted to break the horizontal resistance three times (triple) but still failed to pass through.

💥The completeness of the form takes place when the price has adjusted down until breaking through the horizontal support line that used to support the abyss point 1 and bottom point 2 down. Here, the level is seen as a neckline, similar to the case of head & shoulders, but in fact, they call it the base line. The amount of volume in this period will increase a lot as a result of the profit that will occur after.

💥The question is, will you stop playing at all? The answer is no! But you will wait to set up at a level away from the neckline down equal to or close to the distance measured from the top 2 to the neckline. In principle, there may be some rebound, but that's just a bounce, not a shift. Continually rising playing in this period could be a bit of play and wait to take profits at the level before or close to the neckline. The number of volumes sold out was enormous. You can see that at the beginning, the volume movement is still an uptrend, but later the trend has become a downtrend, and thus it is one of the reversal patterns.

💥If you still don't understand, I encourage you to study the concept again and again. It's not as difficult as you may think! For those who understand, let's move on to discussing triple bottoms. Firstly, we need to understand what triple bottoms are used for. Can you guess? Some traders may have already figured it out. It is a pattern that increases the likelihood of a downtrend turning into an uptrend.

💥Initially, the price trend was still in a downtrend. When the price hit bottom 1 in the chart, buying pressure pushed the price back up. Buyers saw the price at bottom 1 as cheap. However, when the price reached top 1, some people decided to sell and take profit because the overall trend was still in a downtrend. This selling pressure caused the price to fall back down to the base, as defined by the support line mentioned earlier.

💥The price then rebounded from bottom 2 and continued to rise until it reached peak 2. However, it was hit again and began to fall once more until it reached bottom 3. This time, there should be more buying interest as the price had fallen twice before but did not go lower than the previous two bottoms (bottom 1 and bottom 2). Buyers had to fight to push the price back up.

💥If the price can break through the base line resistance again, it will gain a lot of reinforcement. The number of traded volumes will increase, confirming that this rise is strong enough. Many are starting to see that this is a pattern of triple bottoms, although there may be some downturn from short-term take profit. The distance before the neckline compared to the distance between Bottom 1 and Bottom 2 is an adaptation in preparation for an uptrend in the form of triple tops or triple bottoms. When forming, it can be seen that volume and prices move sideways, as shown in the figure depicting triple tops in real volumes.