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in

Chart Patterns

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 Trading Ideas/Methods
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 Chart patterns: Flags, Pennants, Wedges, Triangles
only sure shot tips...!
 Most difficult for scalp traders to follow, since it requires buying aggressive at a new high
price and (potentially) taking profits at a higher price, or selling at a low price and (potentially)
taking profits at a lower price.

 Scalp trading methods that use breakouts above resistance as buy signals and breakouts

IntradayMoney.in
below support as sell signals appear to be the most recognizable for the average trader

 Additional variations of breakout methods focus on buying or selling only based on price
action breakout above or below the previous pivots areas (swing pivots or floor pivots)
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Up Trend
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only sure shot Momentum
tips...!

Down Trend

Day Trading

Gapping
Up/Down
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Consolidation
Or
Range-Bound
Sideways Price Action

Price Action Categories Price Action Movements

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3. Sideways Topping Action

3-Bar Bearish Reversal

3-Bar Bullish Reversal
Bull Trap
Bear Trap

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Bearish Piercing
Bullish Piercing

Bullish Engulfing Bearish Engulfing

Opening Range – Higher Low Opening Range – Lower High

1. Sideways Bottoming Action 1. Sideways Bottoming Action

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UPTREND/BREAKOUT

www.dailyniftytips.in HIGHER HIGHS/HIGHER LOWS

BULLS IN CONTROL

only sure shot tips...! BUYERS

VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED

PHASE II
Consider ½ X
position size
Consider 1 ½

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DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
X position size
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR SUPPORT
BUYING POWER
ACCUMULATION
PHASE IV SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERSOLD

PHASE I
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Transition Among
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only sure shot Phases
tips...!

T2-3 T3-4
Transition from Transition from
Phase 2 to 3 Phase 3 to 4
Down Trend
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Consider 1 ½ X Position
Breakout Size

T1-2 T4-1
Transition from
Phase 4 to 1
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Trading with the trending price action.

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only sure shot tips...!

Uptrend Breakouts for

BUY signals

2 3
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1
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Price
4 Action
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only sure shot tips...!
4

Ideal trading 4
situation
4 Natural pullbacks

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4 in price action

ENTRY

Trade # 1 Trade #2 Trade #3

LONG Entry
•Up trend
Profit Lose Lose
•Higher Highs & Higher Lows 2R 1R 1R
 Adding to Positions
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Up Trend
B
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only sure shotAdd
tips...! Parallel
2
1
C

A Flags

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J
Add K
2
1
Parallel
3

Down Trend L
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Initial Stop

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A
only sure shot tips...!
C Risk
Parallel 2
1
Basic break
down entry
3 signal
B
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Flags Preliminary
target
 RESISTANCE
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SELL POWER
DISTRIBUTION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERBOUGHT

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UPTREND/BREAKOUT
PROFIT TAKING

only sure shot tips...!

HIGHER HIGHS/HIGHER LOWS
PHASE III
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED

PHASE II
20 MA

IntradayMoney.in
Consider ½ X
position size DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR

PHASE IV Consider 1 ½
200 MA X position size
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(1R)

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Initial Signal & Setup
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Transition Among Trade # 1 Trade #2 Trade #3

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Phases
Profit Lose Lose
only sure shot tips...!
Up Trend 2R 1R 1R
breakdown
T2-3 T3-4
Transition from
Phase 2 to 3
Consider 1.5X position

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size

Intraday
T1-2 T4-1
Transition from Transition from
Phase 1 to 2 Phase 4 to 1
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Trading with the trending price action.

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only sure shot tips...!
1

2 3

IntradayMoney.in Downtrend Breakdown

for SHORT signals
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 M Patterns
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 Prices trend upward (short term) and usually don’t rise above the first high
only sure shot tips...!
 Evaluate the decline between the two price action lows

 Define the confirmation point as the lowest low between the two price action highs

 After the second high in price action, look for price action to decline below the confirmation
point without retracing above the highs

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 Look for volume to be higher on the first high typically compared to the more recent high

 Overall volume trend often is downward

 Look for volume to increase substantially for the breakdown of the M pattern

 Can consider a measurement rule of the height of the price action from the low to the
confirmation point and extrapolate as a potential target area
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 W Patterns
 Prices trend downward (short term) and usually don’t decline below the first low
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only sure shot
 Evaluate thetips...!
rise between the two price action lows
 Define the confirmation point as the highest high between the two price action lows
 After the second low in price action, look for price action to rise above the confirmation point
without retracing below the bottoms
 Look for volume to be higher on the first low typically compared to the more recent low



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Look for volume to increase substantially for the breakout of the W pattern
High failure rate such that price action does not break above the confirmation point and
hence continues trending lower
 Can consider a measurement rule of the height of the price action from the low to the
confirmation point and extrapolate as a potential target area
 4 www.intradaymoney.in

Price
4 Action
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only sure shot tips...!
4

Ideal trading 4
situation
4 Natural pullbacks

IntradayMoney.in
4 in price action

ENTRY

LONG Entry
•Up trend
•Higher Highs & Higher Lows
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Price
Action
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only sure shot tips...!

Ideal trading
situation
Higher

IntradayMoney.in Opening Ranges

ENTRY

LONG Entry
•Up trend
•Higher Highs & Higher Lows
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Stops
M-Pattern Initial Stop
Fibonacci
Retracements (1R)
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A
only sure shot tips...!
C
2
1

Gap
3

B
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Flags Preliminary
target

Unless there is adequate reward remaining in the trade with the gap
– skip the trade
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Transition Among Phases

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only sure shot tips...!

2 3
B A
3 Parallel 2
C
Flags
Flags 2
1
1

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C 3
B
A
2 3

1
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OR = Opening Range
Previous Today
Day
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only sure shot tips...!
High

OR High

Candlestick

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Reversal
Pre-Market

Gap
Gap
Downtrend
Fill

OR Low
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Price
Action
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only sure shot tips...!

Ideal trading
situation
OR High

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ENTRY

OR Low

LONG Entry
•Up trend
•Higher Highs & Higher Lows
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2B/3B Reversal &

Intraday
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crosses back into OR
only sure shot tips...!

30 min High 30 min High

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2B/3B
Reversal
2B/3B
Reversal
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Price
Action
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only sure shot tips...!

Ideal trading
situation

IntradayMoney.in
ENTRY

2B/3B Reversal
LONG Entry
•Up trend
•Higher Highs & Higher Lows
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OR = Opening Range
Previous Today
Day
www.dailyniftytips.in OR High
only sure shot tips...!
High

Candlestick
Reversal

Gap
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Pre-Market
OR Low

Gap
Fill

Uptrend