Glossary of Pattern Names and Strategies

Just as it sounds: a pullback of 3 days of lower lows or two lower lows and one inside day in the context of a strong uptrend. 1 2 3 Snapbacks are the opposite.

This signal occurs when a stock is trading above both its 10 and 50 day DMA’s and closes near the high of the day following a prior day’s close near the low of the range.

A 180 Sell is the opposite.

This is a breakout over a 3 point declining trendline (bullish).
An Angular Rule of 4 Breakdown is a break below a 3 point rising trendline (bearish).

Two inside days after a large upthrust.

A breakout above a “Line Formation” or a flat that subsequently sees price quickly reverse back below the breakout day.

This is a move to a new 60-day high on the largest range in the last 10 sessions.
An Expansion Breakdown is the opposite.

This signal is a move over the 50 DMA with the largest range in the last 10 days.
An Expansion Pivot Sell Signal is a move below a 50 DMA with the largest range in 10 days.

This signal is a gap down to a new 60-day low with a close in the top 25% of the day’s range.
A Gilligan Sell signal is a gap up to a new 60-day high with a close in the bottom 25% of the day’s range.

This signal occurs when a stock pivots out of a consolidation or pullback and immediate reverses the next day. A Buy signal is a mirror image.

This occurs when a stock offsets an open gap to the downside.
A Jump The Creek Sell is the opposite.

This signal is a new 10 day Bottoming Tail where the stock opens, sells off, and then rallies to close near the open. A Lizard sell signal is the exact opposite: a new 10 Tail Topping Tail where the stock makes a new 10 day high, running up but tailing off to close near the open.

An LROD or Lightning Rod is a large range outside day, up or down. Large range indicates momentum. Range often precedes price.

The narrowest range in the last 7 trading days. Range contractions usually see expansions within the next few days.

A Pause Day is just as it sounds—a narrow range day after a large range thrust. The nature of price behavior is to thrust, pause, and thrust in the direction of the initial thrust. There is a better than average likelihood of continuation on day three. Hence the TNT concept of Thrust-Noise-Thrust.

A new 60 day closing high but not a new intraday high. In other words, the new closing high is veiled by the prior intraday highs.

This occurs when the 3 Day Chart is up (3 consecutive higher highs on the daily chart of the prior circled 3 Day Chart high is exceeded) and then you have 2 consecutive lower lows on the daily chart.

A Minus One/Plus Two Sell Setup is the exact opposite.

A Power Surge Buy setup occurs from 3 higher lows.
A Power Surge Sell setup occurs from 3 lower highs.

This refers to the day after a signal is generated. The following day is worth watching because often there is a Pause before signal follows through as big money waits to see if the stock comes in before pressing. If it doesn’t pull back, they will bid it up again.

Such signals are straight down bars followed by a straight up bar at/near new 60 lows.
Opposite for sells.

This occurs when a stock traces out a triangle, breaks one way and then breaks the other way out of the triangle. False moves lead to fast moves.