Rare Pattern Is One of the Most PredictiveOne of the most predicative chart patterns you will come across is he saucer pattern. Saucers are also referred to as "bowls" or even "rounded tops or bottoms", and one look at this pattern tells where these names are derived from. However, there is a problem with saucer patterns - they're hard to find. Saucers represent a slow, gradual change in trend. The best saucer formations show a clear arc with a tight trading range at the bottom of the arc. When we spot this formation, we are looking to trade off the bottom of the saucer to the "lip", or the level where the saucer began to form. Some traders like to trade a saucer after the formation is complete, either going long on a break up from the lip or short if the lip is honoured as resistance. This approach works well at times, but the safest bet is trading inside the saucer. Saucers are rare in today's market. You can spend hours scouring daily charts before coming across one. However, they are easier to find in real time charts and still hold their predictive potential. Regardless of the time frame you are looking at, keep an open for this pattern - it would be difficult for the market to telegraph a trend reversal any more clearly. |
Nice Saucer Pattern on BVSN
Saucers can occur at tops as well as bottoms, as shown by
WCOM
Saucers are easier to find in real time, as illustrated by
this 5 minute chart of SGP
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