Basic Pattern M

M patterns is for Downtrend Chart Patterns

 

See PIC 1 and PIC 2: A pattern is said to point a downtrend, if point 1 not exceeded by  point 3 or  point 1 same with the point 3 (DOUBLE TOP), then the graph will lead to: the first target is the point 2 and the second target is the point 0.

What if point 3 is greater than  point 1 ? then the chart is still in  uptrend pattern .if point 2 is exceeded, the pattern turns into a Downtrend Chart Patterns.

If you want to take a SELL position then a good entry point is at point 3 with the placement of stop loss at point 1 and the first target at point 2.

 

Look stock prices below :

BOEING WEEKLY

 

 

MICROSOFT DAILY

 

 

GM DAILY