CPAT9 Nov1317 SAVE - Chart Patterns, Algorithmic Trading ...Gold Futures @GC (Daily) chart is...

Nov. 20, 2017

Chart Patterns & Algo. TradersuriNotes.com’s

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Chart Patterns & Algorithmic Trader 2017 ALL RIGHTS RESERVED

No part of this document may be reproduced or transmitted without the express written consent ofthe suriNotes.com or Suri Duddella.

This document relies on sources and information reasonably believed to be accurate, but neither theauthor nor publisher guarantees accuracy or completeness.

The examples in this document could be considered hypothetical trades.

The CFTC warns that:

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS,SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADETHAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILARTO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCESBETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTSSUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THELIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY AREGENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION,HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NOHYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OFFINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTANDLOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADINGLOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUALTRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THEMARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADINGPROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OFHYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELYAFFECT ACTUAL TRADING RESULTS.

COPYRIGHT © 2017 – suriNotes.com

Data & Charts are created by TradeStation Software from TradeStation Securities.Published in the United States of America

All the material in this document is provided as Educational Material only.NONE of the chart patterns or chart setups or all other material in thisdocument are trade recommendations. Trading is risky. You are 100%responsible for your own trading.

Trading is risky. You are 100% responsible for your own trading. suriNotes.com orSuri Duddella, specifically disclaims any and all express and impliedwarranties. Your trades may entail substantial loss. Nothing in this documentshould be construed as a recommendation to buy or sell any security or otherinstrument, or a determination that any trade is suitable for you.

Chart Patterns and other material in this document are Auto generated in TradeStationsoftware and we try our best to check for errors and data consistency, but they may stillconsist of data or algorithmic errors.

Disclaimer:

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ALGORITHMIC TRADER

Trading ABC Bearish Patterns

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Table of Contents

Chart Links■Major Market Indexes Trends 12■Gold Futures ABC Bullish Pattern 13■@QM Inv. H&S Pattern 14■@QM Inv. H&S Pattern 18■USO Inv. H&S Pattern 19■XLE ABC Bullish Pattern 20■XOP ABC Bullish Pattern 21■COP ABC Bullish Pattern 22■CORR Rectangle Channel 23■CVX Cup & Handle Pattern 24■CXO Bull Flag Pattern 25■DVN ABC Bullish Pattern 26■MRO ABC Bullish Pattern 27■MUR AB=CD Pattern 28■XOM Bearish Dragon Pattern 29■COST ABC Bullish Pattern 33■LLY ABC Bullish Pattern 34■SPLK Cup & Handle Pattern 35■LULU Rectangle Channel Pattern 36■WMT ABC Bullish Pattern 37■TSCO ABC Bullish Pattern 38■MRK Multiple Top 39■NTGR Inv. HS Pattern 40■MMYT H&S Pattern 41■AMAT Ascending Triangle 42■SWKS Cup & Handle Pattern 43■GDX ABC Bullish Pattern 44■INTC ABC Bullish Pattern 45■@HO ABC Bullish Pattern 49■@QM Inv. H&S Pattern 50■@RR AB=CD Pattern 51■@GC ABC Bullish Pattern 52

■@SI Inv. H&S Pattern 53■@OJ Cup & Handle Pattern 54■@SB Desc. Triangle Pattern 55■AUDUSD ABC Bullish Pattern 59■CADCHF AB=CD Pattern 60■CADJPY Cup & Handle Pattern 61■EURAUD ABC Bullish Pattern 62■EURGBP ABC Bullish Pattern 63■EURNZD ABC Bullish Pattern 64■GBPCAD Inv. H&S Pattern 65■GBPJPY Rectangle Channel Pattern 66■USDCAD Inv. H&S Pattern 67■USDJPY ABC Bullish Pattern 68■QM Fib. Zone Pivots 72■@ES Gap Chart 76■YM Gap Chart 78■FIVE ABC Bullish Pattern 82■ULTA Parabolic Arc Pattern 83■WDAY ABC Bullish Pattern 84■PVH ABC Bullish Pattern 85■TIF Rectangle Channel 86■ADSK Ascending Triangle Pattern 87■NUAN AB=CD Pattern 88■VMW AB=CD Pattern 89■CRM ABC Bullish Pattern 90■HPQ Cup & Handle Pattern 91■INTU Cup & Handle Pattern 92■SLV Inv. H&S Pattern 93

Major Markets

Major Markets

Major Indexes %Chg YTD

Chart Patterns & Algorithmic Trader (12)

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All four major market indexes (Weekly) charts are showing strong eSix trends.

Major Market Indexes Trends


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Reviewed in CPAT 10/09/17

Gold Futures @GC (Daily) chart is trading in ABC Bullish Pattern. ABC BullishLong Entry above 1281.7, Stop below 1262.7 (-19.0), Target1 Zone: 1357 to 1382,Target2 Zone: 1456 to 1509

Gold Futures ABC Bullish Pattern


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$@QM (D) is trading in Inv. H&S Pattern. Long entry above 51.575, Stop below49.075 (2.500), Target1 Zone: 56.64 to 58.02, Target2 Zone: 61.99 to 64.86


@QM Inv. H&S Pattern

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Energy Stocks (YTD%)

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@QM (D) Inv. HS Pattern. Long entry above 51.375, Stop below 48.875 (2.500),Target1 Zone: 56.44 to 57.82, Target2 Zone: 61.79 to 64.66



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$USO (D) Inv. HS Pattern. Long entry above 10.32, Stop below 9.83 (0.49), Target1Zone: 11.4 to 11.6, Target2 Zone: 12.4 to 13.0

USO Inv. H&S Pattern


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$XLE (W) ABC Bullish Pattern. Currently eSIX trend is WAIT mode. Long Entryabove 64.35, Stop below 61.79 (-2.56), Target1 Zone: 79.4 to 84.2, Target2 Zone:98.0 to 108.0

XLE ABC Bullish Pattern


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XOP (W) is trading in ABC Bullish pattern. Current eSIX trend is red and patterntrend is not yet confirmed.

XOP ABC Bullish Pattern


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$COP (W) ABC Bullish Pattern Long Entry above 45.10, Stop below 42.25 (-2.85),Target1 Zone: 55.9 to 59.6, Target2 Zone: 70.4 to 78.1

COP ABC Bullish Pattern


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CORR ((Daily) is trading in Rectangle Channel.

CORR Rectangle Channel


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$CVX (D) is trading in Cup & Handle Pattern. Entry above breakout level: 119.00,Handle Low: 112.52, 39.39% below breakout level. T1: 129.2 to 131.9 T2: 139.9 to145.6

CVX Cup & Handle Pattern


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CXO (Daily) is trading in Bull Flag pattern. The bull flag long entry was above $135with targets at $142-145, $149, $155-162. Initial stop was below $130.

CXO Bull Flag Pattern


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$DVN (W) ABC Bullish Pattern Long Entry above 32.77, Stop below 28.78 (-3.99),Target1 Zone: 48.9 to 54.4, Target2 Zone: 70.2 to 81.6. See DVN (Daily) ABCBullish Pattern in CPAT 10/30/17.

DVN ABC Bullish Pattern


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$MRO (W) ABC Bullish Pattern Long Entry above 12.08, Stop below 10.54 (-1.54),Target1 Zone: 18.4 to 20.6, Target2 Zone: 26.8 to 31.2

MRO ABC Bullish Pattern


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MUR (Daily) completed AB=CD Pattern as price reached 100% AB extension level.

MUR AB=CD Pattern


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XOM (W) is trading in Bearish Dragon pattern. Dragon Bearish first target range($70-$75).

XOM Bearish Dragon Pattern

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$COST (D) ABC Bullish Pattern Long Entry above 157.25, Stop below 154.10 (-3.15), Target1 Zone: 164.8 to 167.7, Target2 Zone: 176.0 to 182.0

COST ABC Bullish Pattern


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$LLY (D) ABC Bullish Pattern Long Entry above 83.00, Stop below 81.41 (-1.59),Target1 Zone: 89.0 to 91.0, Target2 Zone: 96.9 to 101.2

LLY ABC Bullish Pattern


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$SPLK (D) is trading in Cup & Handle Pattern. Entry above breakout level: 69.23,Handle Low: 62.34, 45.75% below breakout level. T1: 78.5 to 81.1 T2: 88.4 to 93.6

SPLK Cup & Handle Pattern


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LULU (Daily, Earnings: 12/06/17) is trading in Rectangle Channel pattern. LULUupside breakout level: $63.86. Targets: $67, $70. Stop: $60.70.


LULU Rectangle Channel Pattern


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$WMT (W) ABC Bullish Pattern Long Entry above 68.50, Stop below 65.27 (-3.23),Target1 Zone: 77.0 to 80.1, Target2 Zone: 89.3 to 95.9


WMT ABC Bullish Pattern


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$TSCO (D) ABC Bullish Pattern Long Entry above 56.74, Stop below 54.75 (-1.99),Target1 Zone: 61.9 to 63.9, Target2 Zone: 69.5 to 73.6

TSCO ABC Bullish Pattern


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MRK (Daily) is trading Multiple Top pattern. MRK’s Rectangle Channel pattern wasreviewed in CPAT6 (10/23/17) magazine.

MRK Multiple Top


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$NTGR (D) Inv. HS Pattern. Long entry above 51.90, Stop below 48.00 (3.90),Target1 Zone: 58.3 to 60.1, Target2 Zone: 65.1 to 68.7

NTGR Inv. HS Pattern


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MMYT (D) is trading in H&S Pattern. Short entry below 30.60, Stop above 33.10 (-2.50), Target1 Zone: 24.2 to 22.5, Target2 Zone: 17.5 to 13.9


MMYT H&S Pattern


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AMAT (Daily) reached its 2nd Target zone in Ascending Triangle.


AMAT Ascending Triangle


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SWKS (W) is trading in Cup & Handle Pattern. Entry above breakout level: 112.88,Handle Low: 94.30, 31.83% below breakout level. T1: 149.0 to 158.8 T2: 187.0 to207.5


SWKS Cup & Handle Pattern


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GDX (Daily) is trading in ABC Bullish Pattern. Long Entry above 22.79, Stop below22.21 (-0.58), Target1 Zone: 25.1 to 25.8, Target2 Zone: 28.0 to 29.7

GDX ABC Bullish Pattern


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$INTC (W) ABC Bullish Pattern Long Entry above 27.44, Stop below 24.86 (-2.58),Target1 Zone: 36.4 to 39.5, Target2 Zone: 48.6 to 55.1

INTC ABC Bullish Pattern

Chart PatternsFutures & Commodities

Futures Chg%

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$@HO (W) ABC Bullish Pattern Long Entry above 1.4551, Stop below 1.3514 (-0.1037), Target1 Zone: 1.819 to 1.946, Target2 Zone: 2.312 to 2.576

@HO ABC Bullish Pattern


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$@QM (D) Inv. HS Pattern. Long entry above 51.575, Stop below 49.075 (2.500),Target1 Zone: 56.64 to 58.02, Target2 Zone: 61.99 to 64.86



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@RR (Daily) is trading in AB=CD Pattern. Most AB=CD patterns reverse its trendonce they reach 78-127% of AB leg.

@RR AB=CD Pattern


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$@GC (D) ABC Bullish Pattern. ESIX trend is still red and not confirmed for longsetup. ABC Bullish pattern long Entry above 1281.7, Stop below 1262.7 (-19.0),Target1 Zone: 1357 to 1382, Target2 Zone: 1456 to 1509

@GC ABC Bullish Pattern


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$@SI (D) ABC Bullish Pattern Long Entry above 16.786, Stop below 16.340 (-0.446),Target1 Zone: 18.23 to 18.75, Target2 Zone: 20.23 to 21.30

@SI Inv. H&S Pattern


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@OJ (Daily) is forming Cup & Handle pattern. C&H breakout level is 178.80. Priceneeds to close above breakout level for potential long trade. Entry above breakoutlevel: 178.80, Handle Low: 154.00, 40.19% below breakout level. T1: 216.9 to 227.3T2: 257.2 to 278.8

@OJ Cup & Handle Pattern


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@SB (Daily) is trading in Descending Triangle pattern.


@SB Desc. Triangle Pattern

Chart PatternsFX

FX Chg%

FX Weekly Performance


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$AUDUSD (D) ABC Bullish Pattern Long Entry above 0.76494, Stop below 0.75726(-0.00768), Target1 Zone: 0.8064 to 0.8198, Target2 Zone: 0.8583 to 0.8862


AUDUSD ABC Bullish Pattern


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CADCHF (W) is trading AB=CD Pattern.

CADCHF AB=CD Pattern


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$CADJPY (D) is trading in Cup & Handle Pattern. Entry above breakout level:88.914, Handle Low: 85.415, 41.92% below breakout level. T1: 94.07 to 95.47 T2:99.51 to 102.43

CADJPY Cup & Handle Pattern


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$EURAUD (D) ABC Bullish Pattern Long Entry above 1.46382, Stop below 1.44199(-0.02183), Target1 Zone: 1.5409 to 1.5678, Target2 Zone: 1.6453 to 1.7013


EURAUD ABC Bullish Pattern


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$EURGBP (D) ABC Bullish Pattern Long Entry above 0.88230, Stop below 0.87324(-0.00906), Target1 Zone: 0.9347 to 0.9514, Target2 Zone: 0.9996 to 1.0344


EURGBP ABC Bullish Pattern


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$EURNZD (D) ABC Bullish Pattern Long Entry above 1.54442, Stop below 1.52339(-0.02103), Target1 Zone: 1.6286 to 1.6572, Target2 Zone: 1.7396 to 1.7991

EURNZD ABC Bullish Pattern


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$GBPCAD (D) Inv. HS Pattern. Long entry above 1.67229, Stop below 1.65362(0.01867), Target1 Zone: 1.7271 to 1.7420, Target2 Zone: 1.7850 to 1.8160

GBPCAD Inv. H&S Pattern


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GBPJPY is trading in Rectangle Channel pattern. Channel upside breakout is at148.447.


GBPJPY Rectangle Channel Pattern


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$USDCAD (D) Inv. HS Pattern. Long entry above 1.25976, Stop below 1.25149(0.00828), Target1 Zone: 1.2929 to 1.3019, Target2 Zone: 1.3279 to 1.3467

USDCAD Inv. H&S Pattern


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$USDJPY (W) ABC Bullish Pattern Long Entry above 110.290, Stop below 107.311(-2.979), Target1 Zone: 119.53 to 122.85, Target2 Zone: 132.42 to 139.34

USDJPY ABC Bullish Pattern

KeySupport/Resistance,

Pivots


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ES Fib. Zone Pivots

@ES Fib. Zone Pivots


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NQ Fib. Zone Pivots

NQ Fib. Zone Pivots


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QM Fib. Zone Pivots

QM Fib. Zone Pivots


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@GC Fib. Zone Pivots

GC Fib. Zone Pivots


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YM Fib. Zone Pivots

YM Fib. Zone Pivots

GAP ChartsShows filled and unfilled gap levels


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@ES Gap Chart

@ES Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.


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@NQ Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.

@NQ Gap Chart


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YM Gap Chart

@YM Gap chart with filled and unfilled Gaps with at least 1 ATR Gap.

EarningsCompanies releasing earnings in the next few weeks.

Nove

mber

Ear

nings

Cale

ndar

Dece

mber

Ear

nings

Cale

ndar


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$FIVE (W) ABC Bullish Pattern Long Entry above 38.41, Stop below 35.02 (-3.39),Target1 Zone: 50.9 to 55.3, Target2 Zone: 67.7 to 76.7

FIVE ABC Bullish Pattern


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$ULTA (W) is trading in Parabolic Arc from 07/17/2009 (low: 7.90) to 06/09/2017(high: 314.86). Parabolic Arc patterns are long-term patterns and most of the upsideparabolic patterns return to at least 50-62% of its prior rise in a correction mode.ULTA Short entry is below $265. ULTA Targets: $198, $161, $73-124


ULTA Parabolic Arc Pattern


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$WDAY (W) ABC Bullish Pattern Long Entry above 69.44, Stop below 65.78 (-3.66),Target1 Zone: 94.2 to 102.0, Target2 Zone: 124.2 to 140.4

WDAY ABC Bullish Pattern


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$PVH (W) ABC Bullish Pattern Long Entry above 93.98, Stop below 84.52 (-9.46),Target1 Zone: 116.2 to 124.8, Target2 Zone: 149.6 to 167.5

PVH ABC Bullish Pattern


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TIF (Daily, Earnings: 11/29/17) is trading in Rectangle Channel.

TIF Rectangle Channel


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ADSK (Earnings: 11/28/17) is trading in Ascending Triangle. Breakout level $115.24.Upside targets: $125-127, $130.


ADSK Ascending Triangle Pattern


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NUAN (Earnings: 11/28) is forming AB=CD Pattern. AB=CD patterns usuallycomplete between 100-127% of AB leg.

NUAN AB=CD Pattern


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VMW (Weekly, Earnings: 11/23) is trading in AB=CD bullish pattern.

VMW AB=CD Pattern


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$CRM (W) ABC Bullish Pattern Long Entry above 73.71, Stop below 66.42 (-7.29),Target1 Zone: 86.1 to 91.5, Target2 Zone: 106.9 to 118.1

CRM ABC Bullish Pattern


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$HPQ (D, Earnings: 11/21/17) is trading in Cup & Handle Pattern. Entry abovebreakout level: 19.58, Handle Low: 18.31, 51.21% below breakout level. T1: 21.1 to21.5 T2: 22.7 to 23.6

HPQ Cup & Handle Pattern


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$INTU (D) is trading in Cup & Handle Pattern. Entry above breakout level: 143.81,Handle Low: 140.16, 26.94% below breakout level. T1: 152.2 to 154.5 T2: 161.0 to165.8

INTU Cup & Handle Pattern


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$SLV (D) Inv. HS Pattern. Long entry above 16.80, Stop below 16.11 (0.69), Target1Zone: 18.3 to 18.7, Target2 Zone: 19.8 to 20.6


SLV Inv. H&S Pattern

Weekly Relative Performances

Sector & Indexes Relative PerformancesWinners: Airlines, Banking, BioTech

Losers: Defense, Oil, Energy

Dow 30 Weekly Relative Performance

Select Sectors Weekly Performance

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Watch ListsMomentum

Relative Strength

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Key Retracements

Relative Strength Ranks (200)

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Bullish/Bearish List

52 Week Highs and Lows

D%, W%, M%, YTD%

Algorithmic TradingAlgo. Techniques

Algo. Reports

Current Algorithms

ALL RETURNS POSTED ON THIS PUBLICATION ARE HYPOTHETICAL PERFORMANCE GENERATED BYCOMPUTERIZED SYSTEM AND THEY ARE NOT ACTUAL TRADE REPORTS. HYPOTHETICAL PERFORMANCERESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATIONIS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSESHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCERESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONEOF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPAREDWITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIALRISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIALRISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULARTRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELYAFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS INGENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLYACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CANADVERSELY AFFECT ACTUAL TRADING RESULTS.

Trading ABC BearishPatternsby Suri DuddellaSymmetry, Harmonics and Patterns

Harmonic trading is based on the premise that patternsrepeat themselves and the symmetry can be exploited todefine the geometric and harmonic relationships betweenprice and time-swings using Fibonacci ratios. Harmonicprice movements produce symmetric rallies and decline togive traders an advantage to determine the key turningpoints (pivots) and well defined and repeatable chartpatterns. One of the simplest and most universal chartpatterns is ABC Chart pattern. Please see "Trading ABC Chartpatterns" with a bullish ABC pattern example in December2016 Modern Trader magazine. Here I will discuss ABCBearish chart pattern with a recent example.

The ABC Chart pattern and its related AB=CD Chart Patternare prime examples of "Symmetry" in the markets. These"Harmonic" patterns help traders to identify buying andselling opportunities in all markets and in all time-frames.The ABC and AB=CD patterns are first described by H.M.Gartley in his book "Profits in the Stock Market." (1935). Themain advantages of trading harmonic patterns are that theyallow traders to determine risk vs. reward ratios beforehandas they forecast key market turning points and profit targetsfor traders. In this article, I will describe how to trade 'ABC'chart patterns. The ABC pattern (can be a continuous orreversal pattern) and it is shaped like a lightning bolt.

Identification

The key point in identifying an ABC and AB=CD patterns isto correctly detect the A, B, and C key inflection (Pivot)points in a chart while they are forming. These inflectionpoints are determined from key swing highs and lows ofvarious levels, and for its correction waves to determinedistinct "swings." The potential C point is usually forecastedby the fib. retracements (0.38 to 0.618) of AB Swing. OnceA, B, and C points (and AB, BC legs) are identified, aprojection algorithm is applied to compute the Potential

Completion Zone (PCZ). This PCZ area is where ABC patternis expected to complete and may signal continuation of itstrend in the first trend direction (AB). Following thecompletion of BC leg, the projections of AB and BC legs(using fib. ratios) are plotted (from C) to generate targets.The ABC pattern is traded in the trend direction of AB fromC to D.

Conditions:

The swing legs (AB and BC) in ABC pattern are generally insymmetrical proportions both in price and time withconsistent slopes. The tradable CD leg has a harmonicrelation with symmetry for AB and BC swings. The ABCbullish structures are formed after a prolong prior downtrend or consolidation trends, whereas bearish ABC patternsare formed after a prior uptrend.

Pattern Detection

A Pattern Completion Zone (PCZ) is computed using ABswing and Fibonacci ratios (50-88.6% of AB). This PCZ areais where 'C' pivot is formed at the end of BC swing and tosignal completion of ABC pattern.

Trade Entry:

After ABC pattern is completed, it is advisable to wait forthe pattern to confirm a reversal signal using anymomentum based indicator or price confirmationmechanisms. I use various confirmation and trade entrymethods, but one of the methods is price crossing 2-barhigh after 'C' in ABC Bullish pattern or a 2-bar low after 'C'in ABC bearish pattern.

Stop:

A Stop is placed few ticks below C (in Bullish) or few ticksabove C (in Bearish) levels.

Targets:

The ABC Pattern targets are computed using the AB and BCswings. The height pattern (AB) is used to project targetlevels from C-level using fib. ratios. The first target zone is(62-79% AB) from 'C' and second target zone is (127-162%AB). A secondary target level is set at 100% AB Level at152.21.

Key Ideas to Remember:

The Fibonacci relationships help and give ideas anapproximate area (PCZ) where the pattern may complete.Precise ratio levels for reversals or targets in patterns arevery rare and a tolerance ratio of +/- 2% is added for the fib.ratios. Pattern confluences with other patterns,support/resistance areas, MAs and other market contextelements must be used to identify and validate the patternstructure.

Example:

The following example shows the auto-generated ABCBearish pattern in current Live Cattle futures (LC) dailychart. After a steep rise in LC futures from February to Mayof 2017, prices may have formed a top as it builds an ABCBearish pattern. Here are few key points on how it is traded.

● LC was in a steep uptrend from Feb. '17 to May '17.

● In May 2017, LC formed its first leg (AB) as the pricesdeclined (in 8-sessions) from 130.800 to 116.825.

● From mid-May to June, LC attempted to rally back andformed its second leg (BC) from 116.825 to 127.650.

● In June 1st week, prices reversed again from "C" as LCprices started to fall in the same direction as AB leg.

● "C" pivot retracement of 77.46% completes ABC Bearishpattern.

● A Short-entry was triggered as price closed below Entry123.725 with a Stop 127.65.

● The first target range is set at 116.60-119.025 andsecond target range is set at 105 to 109.9 (127%-162%).

Current Examples Current Examples

Plato Algo. Performance Report (11/17/17)Short/Medium Term, Not for Sale or Lease.

Monty Algo. Performance (11/17/2017)Long Term, NOT for Lease or Sale

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CPAT9 Nov1317 SAVE - Chart Patterns, Algorithmic Trading ...Gold Futures @GC (Daily) chart is...

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