MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition112-17-10

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Double Top with Breakout Down

Entry

Breakout

Pullback Kirkpatrick & Dahlquist Chart 15.3

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition212-17-10

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Rectangle with Entry Up and Breakout Up

Entry

Breakout

ThrowbackKirkpatrick & Dahlquist Chart 15.4

Shortfall

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition312-17-10

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Triple Top with Breakout Down

Entry Breakout

PullbackKirkpatrick & Dahlquist Chart 15.5

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition412-17-10

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Triple Bottom with Breakout Up

Entry Breakout

ThrowbackKirkpatrick & Dahlquist Chart 15.6

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition512-17-10

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Educational FoundationCopyright © 2011.

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Descending Triangle with Breakout Down

Entry Breakout

PullbackKirkpatrick & Dahlquist Chart 15.7

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition612-17-10

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Educational FoundationCopyright © 2011.

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Descending Triangle with Breakout Up

Entry

Breakout

Throwback

Kirkpatrick & Dahlquist Chart 15.8

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition712-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Ascending Triangle with Breakout Down

Kirkpatrick & Dahlquist Chart 15.9

Entry

Breakout

Pullback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition812-17-10

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Educational FoundationCopyright © 2011.

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Kirkpatrick & Dahlquist Chart 15.10

Symmetrical Triangle with Breakout Up

Entry

Breakout

Cradle

Throwback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition912-17-10

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Educational FoundationCopyright © 2011.

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Kirkpatrick & Dahlquist Chart 15.11

Broadening Formation with Breakout Up

Entry

Breakout

Throwback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1012-17-10

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Diamond Pattern with Breakout Down

Kirkpatrick & Dahlquist Chart 15.12

Entry Breakout

Pullback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1112-17-10

This lecture series is produced by the Market Technicians Association

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Rising Wedge with Breakout Down from a Climax Peak

Kirkpatrick & Dahlquist Chart 15.13

Entry

Breakout

Climax Peak Pullback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1212-17-10

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Kirkpatrick & Dahlquist Chart 15.14

Declining Wedge with Breakout Up from Climax Trough

Entry

Breakout

Climax Trough (Panic)

Throwback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1312-17-10

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Educational FoundationCopyright © 2011.

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Kirkpatrick & DahlquistChart 15.15

Cup or Bowl and Handle Variety of a Rounding Bottom with Breakout Up

Entry Breakout

Handle

Throwback

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1412-17-10

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Kirkpatrick & Dahlquist Chart 15.16

Head and Shoulders Top with Breakout Down

Entry

Breakout

Pullback

Right ShoulderHead

Left Shoulder

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1512-17-10

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Head and Shoulders Bottom with Breakout Up

Entry Breakout

Throwback

Right ShoulderLeft Shoulder

Kirkpatrick & Dahlquist Chart 15.17

Head

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1612-17-10

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Flag and Pennant in Upward Trend

Kirkpatrick & Dahlquist Chart 15.18

Flag Pennant

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1712-17-10

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Consolidation Area with Most of Price Action at Lower Level, suggesting breakout will be to the upside

Kirkpatrick & Dahlquist Chart 16.1

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1812-17-10

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Symmetrical Triangle with Upward Breakout

Kirkpatrick & Dahlquist Chart 16.2

One-Box Reversal Chart with a Triangle

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition1912-17-10

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Determining the “Count” in a Consolidation Area by using the price at which the most number of squares are filled

Kirkpatrick & Dahlquist Chart 16.4

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2012-17-10

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Educational FoundationCopyright © 2011.

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Target Determined by Rotating Count Around the Right-Hand Edge in the Direction of the Breakout

Kirkpatrick & Dahlquist Chart 16.5

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2112-17-10

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Fulcrum Bottom

Kirkpatrick & Dahlquist Chart 16.7

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2212-17-10

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Trend Lines

Kirkpatrick & Dahlquist Chart 16.8

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2312-17-10

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Horizontal Count

Kirkpatrick & Dahlquist Chart 16.9

(3 x total width of base in boxes (5) x price/box (1/2)) + lowest price in formation (15) = price target (23)

X3

H

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2412-17-10

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Educational FoundationCopyright © 2011.

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Double Top and Double Bottom

Kirkpatrick & Dahlquist Chart 16.11

Buy

Sell

Double Top Double Bottom

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2512-17-10

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Educational FoundationCopyright © 2011.

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Rising Bottom and Declining Top

Kirkpatrick & Dahlquist Chart 16.12

Rising Bottom Declining Top

Buy

Sell

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2612-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Kirkpatrick & Dahlquist Chart 16.13

Breakout of Triple Top

Breakout of Triple Bottom

Buy

Sell

Triple Top and Triple Bottom Breakouts

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2712-17-10

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Educational FoundationCopyright © 2011.

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Kirkpatrick & Dahlquist Chart 16.14

Ascending Triple Top

Descending Triple Bottom

Ascending Triple Top and Descending Triple Bottom

Buy

Sell

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2812-17-10

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Educational FoundationCopyright © 2011.

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Spread Triple Top and Spread Triple Bottom

Kirkpatrick & Dahlquist Chart 16.15

Buy

Sell

Spread Triple Top Spread Triple Bottom

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition2912-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Upward Breakout of Bullish Triangle Downward Breakout of

Bullish Triangle

Bullish and Bearish Triangles

Kirkpatrick & Dahlquist Chart 16.16

Buy

Sell

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3012-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Breakouts from Resistance and Support Lines

Kirkpatrick & Dahlquist Chart 16.17

Upward Breakout Above a Resistance Line

Downward Breakout of a Support Line

Buy

Sell

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3112-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Upward Breakout Above a Resistance Line

Breakouts from Resistance and Support Lines

Kirkpatrick & Dahlquist Chart 16.18

Buy

Sell

Downward Breakout of a Support Line

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3212-17-10

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Educational FoundationCopyright © 2011.

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Bullish Catapult

Bullish and Bearish Catapults

Kirkpatrick & Dahlquist Chart 16.19

Buy

Bearish Catapult

Stop

Buy Half

Stop

Sell

Sell Half

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3312-17-10

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Educational FoundationCopyright © 2011.

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Spike Pattern or Long Tail Download

Kirkpatrick & Dahlquist Chart 16.20

Buy

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3412-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Buy

Strong Upward Trend in Bull Market

False Breakdown from Double Bottom

Shakeout Pattern

Kirkpatrick & Dahlquist Chart 16.21

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3512-17-10

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Educational FoundationCopyright © 2011.

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A Gap Down

Kirkpatrick & Dahlquist Chart 17.1

Gap Down

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3612-17-10

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Educational FoundationCopyright © 2011.

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Explosion Gap Pivot

Kirkpatrick & Dahlquist Chart 17.2

Entry Buy Stop

Breakaway Gap (New High for

20 Days) Pivot Low

Protective Stop

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3712-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Opening Down Gap

Kirkpatrick & Dahlquist Chart 17.3

Opening Down Gap (Later filled during day)

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3812-17-10

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Dead Cat BounceApril - October 1993

Kirkpatrick & Dahlquist Chart 17.6

StockCharts.com

Apple Computer

Dead Cat Bounce

Daily

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition3912-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Inside Bar

Kirkpatrick & Dahlquist Chart 17.9

Buy Next Bar at Opening

Above Inside Bar Close

Sell Next Bar at Opening

Below Inside Bar Close

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4012-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

All rights are reserved.

Inside Bar with Higher Close

Kirkpatrick & Dahlquist Chart 17.10

Buy Next Bar at Opening

Above Inside Bar Close

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4112-17-10

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Educational FoundationCopyright © 2011.

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Hikkake Buy Failure

Kirkpatrick & Dahlquist Chart 17.12

Buy (Conventional)

Inside Bar

Failure (Hikkake Sell)

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4212-17-10

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Educational FoundationCopyright © 2011.

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Landry KO Pattern - Nikkei 225 IndexJune - September 2005

Kirkpatrick & Dahlquist Chart 17.13

Strong Upward Trend Bars Hug Close to Center

Line

Stop Levels

Buy Points after 2 Days of Lower Lows

Source: TradeStation

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4312-17-10

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Educational FoundationCopyright © 2011.

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Shark Pattern with Break to the Upside

Kirkpatrick & Dahlquist Chart 17.15

Buy

Wide Base

Symmetry

Apex

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4412-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Narrow-Range Bar

Kirkpatrick & Dahlquist Chart 17.16 Buy

Sell

NR4

Range on Bar 4 Less than Bars 1-3

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4512-17-10

This lecture series is produced by the Market Technicians Association

Educational FoundationCopyright © 2011.

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Harami Candlestick Pattern

Kirkpatrick & Dahlquist Chart 17.20

Spinning Top Can Be Black or White

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4612-17-10

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Educational FoundationCopyright © 2011.

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Inside Down and Inside Up Candlestick Patterns

Kirkpatrick & Dahlquist Chart 17.27

Inside Down (Up) Inside Up (Bottom)

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4712-17-10

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Educational FoundationCopyright © 2011.

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Hanging Man and Hammer

Kirkpatrick & Dahlquist Chart 17.21

Either Can Be Black or White

Hanging Man Hammer

MTA Educational Foundation University Course – Technical Analysis of the Financial Markets © 2011

Lecture 4 - Pattern Recognition4812-17-10

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Educational FoundationCopyright © 2011.

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Evening Star and Morning Star Candlestick Patterns

Kirkpatrick & Dahlquist Chart 17.25

Spinning Top Can Be Black or White

Evening Star (top) Morning Star (bottom)