Maybe it's an idea to open up a thread where you can post patterns you are seeing in a chart, but you don't know/recognize or know what the meaning is..
I will kick off with the chart of GTCB.
It's is printing a kind of mirrored ascending triangle. Instead of the range narrowing it's widening. Is this a known pattern? What can be expected?
Hey Nikao,
At first glance it looks like a continuartion flag on a pole, the pole being the large white candle from a few sessions back and the flag being the 4 or 5 candles thereafter. However a closer look shows the flag part has a lot of top shadows on the candles and the volume associated is not contracting, thus indicating most likely a bearish pattern. Normally a flag on the pole is a continuation (bullish) indicator as a strong stock rests (consolidates) on lowering volume back to a support level before continuing upwards.
Now if that pattern you have were to continue and enlarge its mirrored ascending triangle then you would probably have whats called a megaphone pattern which is definately a bearish pattern.
Don't take this as gospel, that is just my interpretation of that small part of the chart. Someone else may have another view. This isnot an exact science ad with interpretation comes variance and differing opinions, and that's part of the fun of it all ;)
Quote from: AussieTrader on August 02, 2005, 08:56:57 AM
Hey Nikao,
At first glance it looks like a continuartion flag on a pole, the pole being the large white candle from a few sessions back and the flag being the 4 or 5 candles thereafter. However a closer look shows the flag part has a lot of top shadows on the candles and the volume associated is not contracting, thus indicating most likely a bearish pattern. Normally a flag on the pole is a continuation (bullish) indicator as a strong stock rests (consolidates) on lowering volume back to a support level before continuing upwards.
Now if that pattern you have were to continue and enlarge its mirrored ascending triangle then you would probably have whats called a megaphone pattern which is definately a bearish pattern.
Don't take this as gospel, that is just my interpretation of that small part of the chart. Someone else may have another view. This isnot an exact science ad with interpretation comes variance and differing opinions, and that's part of the fun of it all ;)
thx for your reply.. I will post the outcome of this pattern when the chart is showing it ;) we shall then see if this one is indead a bearish pattern (what my guess is also) .
ok.. to bad we didn't got this one right...... I sold at 1,78.. and yesterday it shut op to 2,10 with one big white candle :o >:(
If you look again at your chart (here) you will see that GTCB gave 2 days indication of moving out of that 'flag / reverse triangle' with nice hammers before the big white candle.
Excellent chart explanation of this move Aussie (applaud)
nikao - you had a feeling that this one would rise and you were right on(applaud)...and next time you will catch it :) so learn all you can from this
the problem is that I sold before the 2 days that it was getting out of the flag-thing, and at that time my wish/feeling took over and told me it would go down again.. so I didn't dare to enter higher than I sold ..
Well, learned another very valuable lesson (and paid for it as well ;) ): never sell a stock unless there is significant reason to sell (so don't sell high to try and catch it low again)