TA - Reversal Formations

[GreatPig]

Thought it was about time to start another technical analysis topic. Since I've just been getting through the section on reversal formations in Edwards & Magee, I thought I'd go with this.

This includes such formations as head and shoulders, double/triple tops & bottoms, triangles, and rectangles.

I've included a few charts of what I think are some possible examples. They're all based on longer-term patterns, and I couldn't find any right-triangle formations.

All comments welcome.

Cheers,
GP


This first image shows some examples of what I think are double tops. I should note though that the bottom-right example is up to the current date, so it's not guaranteed to be a double top yet. It needs to drop through the support line first. And it's CBA in case you're wondering.

 

[GreatPig]

And some double bottoms.

GP

 

[GreatPig]

A triple top and bottom and some head and shoulders.

GP

 

[GreatPig]

A couple of rectangle tops and dished (saucer?) bottoms.

GP

 

[GreatPig]

And finally some symmetric triangles, although these are often also consolidation patterns.

As I mentioned, I didn't find any right-triangles while looking up these examples - although the last one here could potentially be one if I drew the top line across the middle peak instead of the very left one..

GP

 

[positivecashflow]

Hey GreatPig,

Great post... keep the charts and observations coming... I'm learning a little more each day I am also just reading a chapter on formations so this post was timely.

Cheers,

J.

 

[GreatPig]

Thanks p0sItIvEcAsHfL0w.

The Edwards & Magee book is great for this stuff, with lots of examples, but it's American and decades old so I thought it would be worthwhile to go hunting on some recent ASX charts.

It's also not the most entertaining reading, so anything for a break ;D.

Cheers,
GP

 

[positivecashflow]

I am currently reading Charting in A Nutshell just as an intro to T/A so I hope after reading that more posts on this site will make sense to me...

Cheers,

J.

 

[JetDollars]

Great posts, GreatPig. Keep them coming, and thank you for a great infos.

 

[still_in_school]

Hi GreatPig,

love the T/A stuff... something about T/A... but it draws me toward, just like the resources sector... ???

Great Stuff...

Cheers,
sis