ATMASphere Aug 2014

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EDITOR’S NOTE In this issue - 1. Ananth Madhav explains the way to trade Consolidation patterns with the help of Volume in his article – Discipline in Trading 2. Rajat Dutta provides 5 tips that can help to become a good swing trader. 3. Steve Burns shares his wisdom and experience in his behavioral analysis piece – 10 things that will improve your trading results quickly. 4. Subhadip Nandy brings fourth part of his series - Designing a trading system. 5. Alex a.k.a Pit trader introduces the concept of Market Profile. 6. Claudia Mincucci presents yet another brilliant review of the MTA’s Dow Award winning paper of 2001 – Sign of Bear. We await your feedback on ATMASphere. Please let us know what we can do to deliver content that meets your needs by sending an email to editor@atma-india.net. You can also subscribe to ATMASphere completely free by clicking here. Sincerely, Gunjan Duaa. AUGUST 2014 ATMASPHERE | 4
Consolidation Patterns through the eyes of volume The typical behavior of consolidation patterns is lack of price direction and volume contraction. During sideways movement Price often gets confined between two lines which can be horizontal (support and resistance) or angular (triangles, wedges). The consolidation period ends when price breaks support or resistance. Breakouts which are accompanied by volume only sustain. 1. Ascending Triangles: An Ascending triangle is a Bullish pattern with an upward sloping line (support) and a flat top line (resistance). The pattern will have higher lows which show decreasing selling pressure every time price goes near the angular support line. It can have 2 or more highs near the resistance line. Volume contracts during the triangle formation and increases once the breakout happens. Patterns such as triangles and flags are commonly seen in sideways market. Let’s see how volume behaves in a trend consolidation phase and breaks out in continuation of previous trend. Volume behavior in triangles: Triangular patterns are created during consolidation phases, representing a temporary pause in the ongoing trend before continuing in the trend direction. A triangle is formed with at least 2 touches on the converging support and resistance lines. Volume contracts during the triangle formation period. Triangles can be symmetrical, ascending or descending. AUGUST 2014 ATMASPHERE | 5
Page 2 and 3: CONTENTS Letter from the President
Page 6 and 7: 2. Symmetrical Triangles: These are
Page 8 and 9: 5 Price action tips that will make
Page 10 and 11: Tip # 3. Look for wide range candle
Page 12 and 13: Rajat Dutta is a system designer an
Page 14 and 15: 5. High quality trades, many times,
Page 16 and 17: method that we will follow. Now why
Page 18 and 19: Understanding Market Profile Introd
Page 20 and 21: Hi, I often go with nick name Pit T
Page 22 and 23: Within an average period of less th
Page 24 and 25: World's FIRST E-Library of Technica
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ATMASphere Aug 2014

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