Symmetrical Triangle (Neutral-continuation)

-favors the percentages of the odds of the preceding trend, so kung may downtrend prior
sa formation ng ST, then there’s the likelihood of the downtrend to continue and vice-versa.

-declining peaks constitutes sellers are aggressive, rising throughs constitutes

aggressive buyers, that is why it is neutral. Eventually, someone has to win, whoever breaks the
line wins.

Ascending Triangle (Uptrend-continuation)

-prior to a formation of an ascending triangle there should be an uptrend, so the buying
pressure is high because of the breakout from the previous resistance (which is now a support).

-considered as an intermediate pattern, meaning it would take 1 month to 3 months to

form.

-eventually it will correct and someone has to take profit, so the selling pressure will be
high causing it to pause and decline. “This is high enough, I can sell at this profit let me sell
already”

-rising throughs constitutes that buyers are aggressive because they are willing to buy at
a much higher price not withstanding the support it makes, they want to enter so early that they
are eager to take a position because they are positive that the uptrend will continue. So, the
buying pressure is great, add up to this those who want to take more position to their long
position will surely make the price go higher.

-the flat upper line constitutes that the bulls are much stronger because they are not
letting the price to go up such yet. Therefore, once it rallies to the peak the buying pressure is
declining and selling pressure is increasing (profit taking for those who didn’t sell at the first
peak), so the price will dip, and will happen again.

-as the pattern forms, the volatility will contract and someone has to win, the gap
between the resistance price and support price are converging and being close together at a
much higher price because of the buyer’s aggressiveness. Also, you want to see the volume
decline as the pattern forms to indicate that there are no more weak hands and everyone is
bullish about the trend.

-what will happen? Since there are no more sellers, the buying pressure (those who
wanted to join the trend and those who wants to put in more position) will accumulate, thus
making the price to go up, in addition to this once the flat line (resistance) breaks out, the more
buying demand will come in because the public will notice the uptrend.

Descending Triangle (Downtrend-continuation)

-prior to a formation of a descending triangle there should be a downtrend, so the selling
pressure is high because of the breakout from the previous support (which is now a resistance).

-considered as an intermediate pattern, meaning it would take 1 month to 3 months to

form.
 -eventually it will pause because someone will think that “That’s enough, the price
reaches its bottom, its too cheap” so there are some traders that will buy causing it to rally.

-declining peaks constitutes that the sellers are aggressive because they are selling
much earlier even though the previous peaks have not been reached yet, those who bought at
the violation of the support (breakout) are now selling at this point just to get breakeven or to
minimize their losses plus those who are making bounce plays are also selling at this point. So,
every time the price rallies, the selling pressure is increasing threatening the bulls, which makes
the price go lower.

-the flat down line constitutes that the bears are still on their grip and are strong because
they are not letting the price to go down further yet. Therefore, once it bounces the selling
pressure is declining and buying pressure is increasing (these are the traders who expects
bounce plays and thinks that the trend is going up or reversing) making the price to rally, and
will happen again.

-as the pattern forms, the volatility will also contract and someone has to win, the gap
between the support and the resistance are converging and being close together at a much
lower price because of the seller’s aggressiveness. Also, you want to see the volume decline as
the pattern forms to indicate that there are a lot of weak hands and everyone is bearish about
the trend.

-what will happen? Since there are no more trader willing to buy, the selling pressure
(those who are still hoping for it to comeback so they will have breakeven or a minimal loss, and
those who expected a bounce plays that has a position for expected profit taking) will
accumulate, thus making the price go down, consequently, once the support has been violated,
the selling pressure will surely increase because of those who have positions will try to cut loss
and exit their position just to get out and eliminate the potential of the snowball of their loss
making the price to plunge more.

Bullish Flags (Uptrend-continuation); counter-intuitive

-usually occurs after a resistance breakout or a dynamic move, meaning a steep inclined
slope.

-considered as a near-term pattern, meaning it would take less than 4 weeks to form.
The longer it forms, the more it loses its significance.

-after a resistance breakout, expect that there will be sellers profit taking (those who
bought at the breakout will sell causing the price to pause and decline) “This is high enough, I
can sell at this profit let me sell already”

-declining peaks constitutes that sellers are aggressive because they are selling too
early notwithstanding the previous peak, those who bought at the breakout of the resistance are
now selling at this point to take profit, so every time the price rallies the sellers comes out and
threatens the bulls, which makes the price to dip.

-declining throughs constitutes that the buyers are challenging the aggressive sellers,
they are not buying till such time its much cheaper than the previous dips. So, when it goes
lower than the previous through (dip) the buying pressure is increasing once again (those who
wants to add more on their long position and those who wants to enter the trend) making the
price go higher, and it will happen again.

- eventually, someone has to win. As the pattern forms you want to see the volume
decline that will indicate that there are no more sellers at a much cheaper price (declining
throughs) pero dumadami ang buying pressure since its being cheap. That is why it is a
counter-intuitive pattern, you were given an uptrend, but the consolidation pattern forms a
downtrend pattern. Buyers likes it cheap, so the buying pressure will increase again, thus
making the price to go even higher.

-what will happen? Since there are more bullish on the stock (since its being cheap), the
demand will be great (those who wanted to add more to their long position, and those who have
no position and decided to join the trend) will accumulate, thus making the price go up.

Bearish Flags (Downtrend-continuation); counter-intuitive

-usually occurs after a support violation or a dynamic down move; meaning a steep
downward slope

- considered as a near-term pattern, meaning it would take less than 4 weeks to form.
The longer it forms, the more it loses its significance.

-after a support breakout, expect that there will be a lot of sellers trying to exit their
position and cutting their losses. “That’s it. I’m no longer bullish about this stock and im cutting
my position” making the price to decline. But, after some time there will be traders that will think
it reached the bottom “This is cheap already, let me buy and I will wait it to bounce” causing the
price to pause and rally.

-rising throughs constitutes that the buyers are aggressive because they are willing to
buy and enter a position at an early point notwithstanding the previous through. The thinking of
this is that the previous decline is now reversing and they want to take a position on this trend
reversal which is false. So, every time the price dips, the buyers are coming in making the price
to rally again.

-rising peaks constitutes that the sellers are secretly challenging the aggressiveness of
the buyers, they are not selling till such time its much higher than the previous rallies. So, when
it goes higher than the previous peak the selling pressure is increasing once again (those who
are wanting to get breakeven or wanting to minimize their losses from the breakout, and those
who are profit taking from the bounces) making the price to dip, and it will happen again.

-eventually, someone has to win of course. As the pattern forms you want to see as well
the volume to contract that will indicate that there are no more buyers at a much higher price
(rising peaks) pero dumadami ang selling pressure since it being more expensive. That is why it
is a counter-intuitive pattern, you were given a downtrend, but the consolidation pattern forms
an uptrend pattern. Sellers likes it expensive, so the selling pressure will increase again, thus
making it too expensive and over-saturated thus making the price to go lower.

-what will happen? Since there are more bearish on the stock (since it is getting
expensive), the supply is overwhelming but no demand at all (those who are wanting to
breakeven or wanting to minimize their losses from the breakout, and those who are profit
taking from the bounces) will accumulate, thus making the price to go lower.
Pennants (Neural-continuation)
-resembles a symmetrical triangle, but on a smaller scale, two converging trendlines.

-considered as a near-term pattern, meaning it would take less than 4 weeks to form.
The longer it forms, the more it loses its significance.

--favors the percentages of the odds of the preceding trend, so kung may uptrend prior
sa formation ng pennat, then there’s the likelihood of the uptrend to continue and vice-versa.

-declining peaks constitutes sellers are aggressive, rising throughs constitutes

aggressive buyers, that is why it is neutral. Eventually, someone has to win, whoever breaks the
line wins.

Falling Wedge (Uptrend-continuation); counter-intuitive

-explanations are the same like a bullish flag, but on a longer time frame
-it will take at least 1 month to 3 months for a wedge to form

Rising Wedge (Downtrend-continuation); counter-intuitive

-explanations are the same like a bearish flag, but on a longer time frame
-it will take at least 1 month to 3 months for a wedge to form