MasterMind

Traders
Intraday Trading
(Manual #2)

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 DISCLAIMER
Neither MasterMindTraders or any of its personnel are
registered broker-dealers or investment advisers. I will
mention that I consider certain securities or positions to be
good candidates for the types of strategies we are discussing or
illustrating. Because I consider the securities or positions
appropriate to the discussion or for illustration purposes does
not mean that I am telling you to trade the strategies or
securities. Keep in mind that we are not providing you with
recommendations or personalized advice about your trading
activities. The information we are providing is not tailored to
any particular individual. Any mention of a particular
security is not a recommendation to buy, sell, or hold that or
any other security or a suggestion that it is suitable for any
specific person. Keep in mind that all trading involves a risk
of loss, and this will always be the situation, regardless of
whether we are discussing strategies that are intended to limit
risk.

Also MasterMind Traders’ personnel are not subject to

trading restrictions. I and others at MasterMind Traders
could have a position in a security or initiate a position in a
security at any time.

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 Chart Patterns
Reversal patterns

Double Top

Double Bottom

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 Chart Patterns
Reversal patterns
Head & Shoulders Top

Head & Shoulders Bottom

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 ADVANCED CHARTING
& TECHNICAL ANALYSIS

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 PRICE AND VOLUME

The top pane has a candlestick chart without any indicators in it.
It allows the trader to look at the chart for prominent patterns
without the pattern being blocked.

In the lower pane there are Volume bars.

Increasing Volume indicates the trend may stay in place.
Decreasing Volume indicates there may be a reversal of the trend.

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 Volume
Volume should validate a price
move.

Price Volume
Bullish
Bearish
Bullish
Bearish

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 MOVING AVERAGES

When a short term moving average crosses a longer term moving

average, it indicates a trend in that direction. It is also important to
note when a stock moves through the longer term averages.
A stock often uses the moving average as a support or resistance line.

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 BOLLINGER BANDS

Bollinger bands squeeze together showing pressure building on the

stock. As the pressure releases, watch for the stock to follow the
upper band (bullish) or the lower band (bearish). If the stock leaves
the band it indicates a reversal. The stock will often move across
and follow the opposite band for a period of time.

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 Candlestick Patterns
One day patterns
These candlesticks have a message of indecision.
When they appear at a critical point (Support or
Resistance) the stock may reverse directions. More
important is what ever happens next is significant.

Spinning Top
Doji
Star Body

Doji – open equals close or prices are very close.

Star Body – small body with wicks less than the size of
the body, usually half the size.
Spinning Top – small body with wicks two to three
times the size of the body but no
smaller and no bigger.
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 Candlestick Reversal Patterns
One day patterns
R

Hanging Man Shooting star

Hammer Inverted Hammer

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 Shooting Star

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 1.) Star Body, 2.) Hanging Man,
3.) Hammer, 4.) Spinning Top
5.) Doji

1.
2.

3.

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 Candlestick Reversal Patterns
Two day patterns
Dark Cloud Cover Piercing Dark Cloud Cover Bearish Engulfing

Thrusting Pattern Piercing Line Bullish Engulfing

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 Candlestick Reversal Patterns
Two day patterns
Bearish Harami Bearish Harami Bearish Harami Cross

Bullish Harami Bullish Harami Bullish Harami Cross

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 Candlestick Reversal Patterns
Three day patterns

Evening Star Abandoned Baby Evening Star

The middle candlestick (the star) should be

a message of indecision, most likely a
Spinning Top, Shooting Star, Star Body or
a Doji. The smaller the body (such as a
Doji) the stronger chance of reversal .

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 Candlestick Reversal Patterns
Three day patterns

Morning Star Abandoned Baby Morning Star

The middle candlestick (the star) should be

a message of indecision, most likely a
Spinning Top, Hammer, Star Body or a
Doji. The smaller the body (such as a Doji)
the stronger chance of reversal .

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 Candlestick Reversal Patterns

Tweezers Top

Two candlesticks with matching highs.

Can have one, maybe two candlesticks

between Tweezer candles with the
matching lows but better reversal with
only one or better yet only the two
Tweezer candles.

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 Candlestick Reversal Patterns

Tweezers Bottom

Two candlesticks with matching lows.

Can have one, maybe two candlesticks
between Tweezer candles with the
matching lows but better reversal with
only one or better yet only the two
Tweezer candles.
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 Continuation Patterns

Rising Three Method

Bullish Mat Hold

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 Continuation Patterns

Falling Three Method

Bearish Mat Hold

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 More Chart Patterns
Flags, Pennants, Triangles,
Consolidation, Ascending &
Descending wedges

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