Pring on Price Patterns : The Definitive Guide to Price Pattern Analysis and Intrepretation

Terms of Use......Page 3
Want to learn more?......Page 4
Contents......Page 5
Introduction......Page 7
Acknowledgments......Page 9
Part I: Basic Building Blocks......Page 11
Changing Attitudes and Changing Prices......Page 13
Technical Analysis Defined......Page 15
Price Patterns and Psychology......Page 16
Time Frames......Page 19
Peak-and-Trough Progression......Page 24
Arithmetic or Logarithmic Scaling?......Page 29
Summary......Page 31
Support and Resistance......Page 32
Rules for Determining Potential Support/Resistance Points......Page 34
Rules for Determining the Probable Significance of a Potential Support or Resistance Zone......Page 41
Summary......Page 44
How Should Trendlines Be Drawn?......Page 45
Trendline Breaks Can Signal Reversals or Consolidation......Page 48
Logarithmic (Ratio) versus Arithmetic Scales......Page 51
Significance of Trendlines......Page 55
Measuring Implications......Page 56
Summary......Page 63
Benefits of Volume Studies......Page 64
Principles of Volume Interpretation......Page 65
Summary......Page 77
Part II: Traditional Patterns......Page 79
Basic Concepts......Page 81
The Transitional Turning Point......Page 82
Introducing the Reversal Rectangle and the Psychological Conditions Contributing to its Formation......Page 84
Consolidation Rectangles......Page 86
What Constitutes a Rectangle?......Page 87
The Significance of Any Given Price Pattern......Page 89
Measuring Implications......Page 91
Arithmetic versus Logarithmic Scaling......Page 93
Retracement Moves......Page 94
Cancellations......Page 95
Confirmation of a Valid Breakout......Page 96
Anticipating when Things Might Go Wrong......Page 98
Volume Considerations......Page 101
Summary......Page 105
Head and Shoulders as a Reversal Pattern......Page 106
Possible Psychology Causing These Formations......Page 108
Measuring Implications......Page 109
Arithmetic versus Logarithmic Scaling......Page 110
Bar Charts versus Close-Only or Line Charts......Page 111
Upward- and Downward-Sloping Patterns......Page 114
Complex Patterns......Page 115
Characteristics of the Formation......Page 117
Marketplace Examples......Page 120
Head-and-Shoulders Formations as Continuation Patterns......Page 127
Head-and-Shoulders Failures......Page 130
Summary......Page 135
Double Tops......Page 137
Other Considerations......Page 139
Marketplace Examples......Page 140
Double Bottoms......Page 142
Marketplace Examples......Page 143
Chinese Double Bottom......Page 145
Platform Double Bottom......Page 148
Double-Bottom Failures......Page 150
Whipsaw Double Bottom ("Lucky Seven" Double Bottom)......Page 152
Triple Tops......Page 154
Summary......Page 155
Symmetrical Triangles......Page 159
The Underlying Psychology......Page 161
Measuring Objectives......Page 162
Weaving Symmetrical Triangles into Head-and-Shoulders Tops......Page 167
Right-Angled Triangles......Page 168
Marketplace Examples......Page 169
Right-Angled Failures......Page 171
The Underlying Psychology of Failed Right-Angled Triangles......Page 175
Summary......Page 177
Orthodox Broadening Formations......Page 179
Right-Angled Broadening Formations......Page 181
Failed Broadening Formations......Page 190
Broadening Wedges......Page 192
Summary......Page 195
Diamonds......Page 198
Giant Wedges......Page 201
Rounding Bottoms (Saucers) and Tops......Page 206
Cup with a Handle......Page 211
Shakeout Tops and Bottoms......Page 213
Summary......Page 216
Part III: Short-Term Patterns......Page 219
Flags......Page 221
Pennants......Page 224
Wedges......Page 229
Gaps......Page 232
Island Reversals......Page 246
Summary......Page 249
Introduction to One- and Two-Bar Patterns......Page 251
General Interpretive Principles......Page 252
One- and Two-Bar Western Patterns Compared to Japanese Candlesticks......Page 253
Outside Bars......Page 254
Summary......Page 268
Guidelines for Determining the Significance of an Inside Bar......Page 269
Marketplace Examples......Page 271
Inside Bars and Japanese Candlesticks......Page 276
Summary......Page 278
Key Reversal Bars......Page 279
Exhaustion Bars......Page 285
Pinocchio Bars......Page 288
Key Reversals, Exhaustion Bars, Pinocchios, and Candlesticks......Page 296
Summary......Page 297
Two-Bar Reversals......Page 299
Three-Bar Reversals......Page 311
Three-Bar Reversals and Candlesticks......Page 319
Summary......Page 322
Part IV: Miscellaneous Issues......Page 325
17 How to Assess Whether a Breakout Will Be Valid or False......Page 327
Why Cutting Losses is Important......Page 328
When Do False Breakouts Most Commonly Occur?......Page 329
Further Pointers to Invalid and Valid Breakouts......Page 332
Anticipating Breakouts that are More Likely to Be Valid......Page 337
The Importance of Using Perspective......Page 340
Basic Problems in Price Pattern Evaluation......Page 345
What was Tested?......Page 348
Aggregate Results......Page 349
Conclusion......Page 355
Appendix: Individual Patterns Summarized......Page 357
Index......Page 364
About the Author......Page 369