Warfield Management
Investment Solutions

Investment Solutions

Chart Patterns

This chart contains both a topping tail (top of the chart) and bottoming tail (bottom of the chart).  The topping tail can indicate a change in momentum to the downside, while the bottoming tail is a signal of an up swing.


Harami-  In this position represents a slowing in the downside momentum. (Hint: When there are two wide range bodies preceding this pattern, notice the WRBs form the flag pole of a bearish flag pattern which can signal a pull back.)

 

Doji- Represents uncertainty and slowing of momentum. (Hint: check the volume to insure that the bar is indeed a doji and not a narrow range body.)


 

Though a doji can signify a change in direction (trend reversal or pull back), as seen in this chart, it can also represent a break before continuing its previous movement.

 

 This chart demonstrates a great upward trend with a narrow range red candlestick to indicate a possible slowing in momentum or change in direction.

 

 This daily chart of Google is a great example of a breakout with a climatic/progressive uptrend.  The long entry was on 5/27, after which a six day $30 profit followed.