Thread by @TraderLion_, 8 Chart Patterns by William O'Neil Let's break them down one by [...]

8 Chart Patterns by William O& #39;Neil

Let& #39;s break them down one by one

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Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Chart resembles a cup with a handle

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum 7 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: 20-30%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: high of the handle

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Handle length: 1 week

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Handle depth: no more than 15%

Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.https://abs.twimg.com/emoji/v2/... draggable=

There is also a Cup without Handle pattern.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Chart is just a cup, no handle

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum 7 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: 20-30%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of left side of cup

There is also a Cup without Handle pattern. https://abs.twimg.com/emoji/v2/... draggable=

Chart is just a cup, no handlehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum 7 weekshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: 20-30%https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of left side of cup" title="There is also a Cup without Handle pattern. https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Chart is just a cup, no handlehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum 7 weekshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: 20-30%https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of left side of cup">

The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base resembles a "W"

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Min. 7 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 40%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: middle of "W"

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Second low must undercut first low

The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.https://abs.twimg.com/emoji/v2/... draggable=

The Flat Base pattern is another well known structure coined by William O& #39;Neil.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base resembles a shallow consolidation

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Prior uptrend must be greater than 30%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum of 5 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 15%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of structure

The Flat Base pattern is another well known structure coined by William O& #39;Neil.https://abs.twimg.com/emoji/v2/... draggable=

The next structure is called the High Tight Flag (HTF). This is one of the most rare but most powerful base types in the market and if handled correctly can change your year.

For a stock to fit the HTF criteria it must:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base resembles a pole & flag

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: 3-5 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 25% (flag)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Stock must run up 100% in less than 8 weeks (flag pole)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje">Buy Point: High of flag

For a stock to fit the HTF criteria it must:https://abs.twimg.com/emoji/v2/... draggable=

The IPO Base is a must know pattern if looking to achieve superperformance in the markets.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Normal base just for IPOs

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum of 7 days (up to 5 weeks)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 20% (sometimes 50% in some market environments)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: high of the base

The IPO Base is a must know pattern if looking to achieve superperformance in the markets.https://abs.twimg.com/emoji/v2/... draggable=

Normal base just for IPOshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum of 7 days (up to 5 weeks)https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 20% (sometimes 50% in some market environments)https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: high of the base" title="The IPO Base is a must know pattern if looking to achieve superperformance in the markets.https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Normal base just for IPOshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: Minimum of 7 days (up to 5 weeks)https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 20% (sometimes 50% in some market environments)https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: high of the base">

The Ascending Base pattern is another structure you must familiarize yourself with.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base on base on base pattern with higher lows

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Constructed during market weakness

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: 9-16 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: 6-25%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of the third pullback

The Ascending Base pattern is another structure you must familiarize yourself with. https://abs.twimg.com/emoji/v2/... draggable=

The last pattern you must learn is the Square Box.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Forms after breakout out of a cup & handle / double bottom

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base length: 4-7 weeks

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Base depth: < 15%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Buy point: High of the structure

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Square box is quicker than a flat base

The last pattern you must learn is the Square Box.https://abs.twimg.com/emoji/v2/... draggable=

Things to look for near the pivot points of each pattern

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rug van hand met omlaag wijzende wijsvinger" aria-label="Emoji: Rug van hand met omlaag wijzende wijsvinger">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Tightness in price action

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Dryup in volume under pivot

https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje"> Increasing volume through the pivot point

These are base patterns so we should expect volume to be BIG when the stock breaks out.

All of the supply has been accumulated by institutions and they begin their markup phase.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Grafiek met stijgende trend" aria-label="Emoji: Grafiek met stijgende trend">

Learning these patterns will help you spot & trade the biggest winners in the market!

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