Indicators and EAs in MT4

Webinar: The Success and Failure of Chart Patterns

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Suri Duddella, 19+ years full-time Futures/Equities/Options Trader. Patterns based Algorithmic Trading. Author -- "Trade Chart Patterns Like The Pros" book.

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• Chart Pattern Modeling
• Essential pattern structure components and analysis
• Practical statistics of patterns success and failures
• Examples of many patterns

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A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. Chartists use these patterns to identify current trends and trend reversals and to trigger buy and sell signals.

Identifying chart patterns is simply a system for predicting stock market trends and turns! Well, a trend is merely an indicator of an imbalance in the supply and demand. These changes can usually be seen by market action through changes in price. These price changes often form meaningful chart patterns that can act as signals in trying to determine possible future trend developments. Research has proven that some patterns have high forecasting probabilities. These patterns include: The Cup & Handle, Flat Base, Ascending and Descending Triangles, Parabolic Curves, Symmetrical Triangles, Wedges, Flags and Pennants, Channels and the Head and Shoulders Patterns.

1. Buy and hold is about being in the market when the big moves occur. This is important because big moves are what truly drives returns in the long run. For instance, if we look at the returns of the S&P 500 from 1994 to 2014, we find that if we eliminate the 10 best days we lose over half of our returns. Being in the market for big gains, and allowing those big gains to compound, is at the heart of buy and hold investing.
2. Because big days are so important to the buy and hold philosophy, it should be worth noting that big days frequently come after big declines. As such, investors should have capital ready to buy after big declines.
3. Part of having capital ready for declines is buying in tranches – blocks of orders at key levels. Basic technical analysis, just as support/resistance analysis or Fibonacci levels, can help traders identify what tranches they should buy at. This can also help traders identify when to sell, as selling as long term investing requires not only buying when the market is low, but selling when the market is high.
4. Note that buy and hold investing has its downside -- namely that in volatile markets it will result in greater drawdowns, and is potentially more conducive to traders who do not have any sort of a plan. A plan for when to buy and when to sell is still necessary for best results.

In this video, Greg Michalowski, reviews the technicals for six major currency pairs in six minutes. Included are the:

EURUSD,
USDJPY,
GBPUSD,
USDCAD,
AUDUSD and
NZDUSD.

• The megaphone pattern, also known as the broadening top pattern, involves price making higher highs AND higher lows.
• As such, it is indicative of greater volatility and instability in the market.
• Specifically, traders should look for five points: a high (point A), a low (point B), a high that is higher than point A (this is point C), a low that is lower than point B (this is point D), and a high that is higher than point C (this is point E).
• Typically, the pattern emerges at the end of an uptrend and is a sign that the market is headed down.

The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful, however you must consider the current price and the volume of shares you intend to trade.

Suri Duddella presents his new ABC patterns research on how to detect the qualified ABC Patterns and how he finds trend and trade setups using market context. He discusses the various pattern elements like trend strength, location of the pattern, size, pattern symmetry and clarity. Suri will show how to trade ABC patterns and all its related patterns like Double Top/Bottoms, Gartleys and various other patterns with specific rules in Intraday/EOD markets. He presents price and time targets for ABC Patterns with many trading examples.

1. Dividend stocks are stocks that share a portion of their earnings with shareholders.

2. Because dividend stocks share earnings with investors, they essentially offer investors two ways to profit: (1) by earning dividends and (2) by share price appreciation.

3. Dividends constitute an income stream of sorts, as companies typically pay dividends on a fixed frequency (i.e. monthly, quarterly, annually, etc).

4. As with any income type of investment, time and compounding are key: being patient and re-investing dividends are what truly enable greater returns over time. Historically speaking, data suggests that for large cap stocks the re-investment of dividends has proven to be a greater source of wealth than capital appreciation of the underlying stock.

James Chen - Multiple Time Frame Trading in the Forex Market

Learn from James Chen how to trade Forex using a high-probability approach that utilizes multiple chart time frames. Identify the trend on the long-term, watch for a pullback on the medium-term, and trade the breakout on the short-term.

James Chen is a highly-experienced trader and analyst. He is the author of Essentials of Foreign Exchange Trading (Wiley, 2009), Essentials of Technical Analysis for Financial Markets (Wiley, 2010).

James Chen, CMT, Chief Technical Strategist for City Index Group teaches high probability technical trading strategies that employ confluence principles for maximizing trade entries and exits.

The charts were made by using free HWAFM tool for Metatrader 5:
Patterns by HWAFM (Metatrader 5) - this thread.

Have you heard any recent "buzz" about something called Harmonic Trading or Elemental Trading? Until recently not many people in the investment and trading world were familiar with these techniques. Fortunately, you don't need to be a mathematician or engineer in order to get results in your trading from employing these highly probably chart patterns as part of your overall technical analysis.
Part of the knowledge now known as harmonic trading began with H.M. Gartley who published a book in 1935 called Profits in the Stock Market. This video illustrates what the original Gartley pattern is and how this pattern as well as the more recent discoveries can be easily employed in your trading business in Forex, stocks, commodities, and futures.

When a pattern forms with specific high and low proportions that are measured with fiboncacci ratios it has been discovered that these patterns will be followed by a "potential reversal zone" which creates a highly probably trading opportunity. Besides the original Gartley pattern including the bullish Gartley and bearish Gartley, there are patterns discovered more recently by Scott Carney in 2000 and 2001. Carney is credited with discovering and researching these patterns including the bullish bat, bearish bat, bullish crab, bearish crab, Traders who are familiar with Elliott Wave will also see how these patterns correspond to Elliott Wave patterns but are a specific type of pattern that is known to be highly probably for producing a turning point and a trade entry that is likely to work out as a profitable trade.

The structure of the Butterfly pattern was discovered by Bryce Gilmore. The butterfly includes a 78.6 Fibonacci retracement of the XA leg as the B point. The CD leg is extended to 127% or 161.8% of AB.

These patterns have now been incorporated into an indicator for Metatrader 4 and Metatrader 5 which draws the pattern clearly on the chart when it forms and produces a trading alert which can be emailed or sent as SMS text to a cell phone.