Terminating pattern
It has been observed by the Analysts that any pattern up or down is revered after a terminating pattern that is observed in the Index. If we look at the image below it would be much clear what I am talking about.
In the image you would see 3 boxes which shows us the classic case of terminating pattern.
Now as you may have heard in the TV channels we were in the bull run for the last five years and so what we saw in that bull run is a correction and each of those correction ended only after showing terminating pattern.
In box 1 and 2 we see that we have no direction as far as Sensex is concerned. It goes up one day and down the other such oscillation in bull market leads to break out in the higher direction.
In box 3 we see that our bull run is showing sign of termination and so it took quite a long time for that pattern to revers and so there is larger time frame after which the trend reversed.
Similar things are observed in the downtrend these days where Sensex gains almost 700 points on one day and looses the same the very next day and then closing above 13800 would suggest the trend reversal as well as 12900 would suggest the downtrend to continue. So lets see which is the level comes first and is violated.
How My Technical Analysis eBook Can Transform An Average Investor into A Market Analyst
If you're trying to make money from equity market, you should understand how the market works and not bet on your luck.
Technical analysis and chart pattern can revolutionize your understanding about the market and help you understand when is the right time to get into any stock and what should be your possible target for the stock.
My eBook helps you get equipped to understanding the market from practical point of view which means unlike many other technical analysis books my eBook does not explain all possible technicals and patterns that any student need to know.
In short I have explained technicals that I use when trading and investing in market.
Ronak, I would love to get those questions as they can help me improve on my ebook. 
Hi,
I am a newbie investor and i was looking to learn technical analysis but i saw your e-book looking forward ...
Hi,
I just started reading this book and one immediate feedback is about a correction that is probably needed. The National ...
thanks sir its very useful
[...] – bookmarked by 3 members originally found by scorpio98 on July 10, 2008 Terminating pattern http://shabbir.in/terminating-pattern/ – bookmarked by 1 members originally found by sassenachtiff [...]