Historical Part of the Chart:
The left part of the chart shows the high, low (green
or red bar) and the close price (blue dot) for the last
50 days. The signal is given by the colour of the bar,
green for bullish, red for bearish. These are short term
signals within price patterns of four dierent lookback
periods which must also be taken under consideration.
Four types of Price Patterns are shown.
Narrowing triangle (narr tri): upper line slopes down,
lower line slopes up. A narrowing triangle often signi-
es that a breakout upwards or downwards is about to
occur. The directions of the actual breakout may be
accompanied by a key breaking news announcement
which helps to conrm the direction.
Widening triangle (wide tri): upper line slopes up,
lower line slopes down. A widening triangle may show
increasing volatility and uncertainty or a potential
turning point if the price bars start to continuously
test the upper or lower line.
Upward channel (up chan): upper line slopes up, lower
line slopes up. An upward channel shows an upward
trending market. Buying is expected at the channel
support and prot taking at the channel resistance.
Downward channel (dn chan): upper line slopes down,
lower line slopes down. A downward channel shows a
downward trending market. Selling is expected at the
channel resistance and prot taking at the channel sup-
Price Pattern Lookback Period:
Four price patterns are shown for a short, medium
short, medium long and long lookback period.
The short term Price Pattern (short) is shown by the
The medium term Price Pattern (med.st) is shown by
the cyan lines.
The medium to long term Price Pattern (med.lg) is
shown by the brown lines.
The long term Price Pattern (long) is shown by the
Price Pattern Table:
This shows the price patterns for the four lookback pe-
riods and also the values of the upper and lower price
pattern lines at the rst forecast day.
Price Alerts: Two types of price alert are shown.
Dashed Price Pattern lines. The price pattern lines are
normally unbroken and act as support or resistance.
However if these lines are being tested on the day of
the forecast, they are shown as dashed lines. Dashed
Price Pattern lines give an alert that the pattern and
hence the forecast may be changing.
Green Up Arrow and Red Down Arrow. If a price pat-
tern line was tested on the day prior to the forecast and
then reverses on the next day, an arrow alert is shown
at the end of the line, in the direction of the reversal.
Pattern Combinations: Dierent behaviour is ex-
pected from dierent pattern combinations. For exam-
ple, if the short term pattern is an up channel and there
is a longer term pattern with a down channel, the price
may fall on reaching the top of the longer term down
Forecast Part of the Chart:
Support & Resistance Levels: Three dierent support
and resistance levels are shown. Blue horizontal lines
for days 1-2 and black horizontal lines for days 2-5 and
Forecast lines: The forecast for the next 1-5 days is
shown by green lines if the forecast trend is up or by
red lines if the forecast trend is down. Three lines are
shown for upper, mid and lower expectation. If the ac-
tual price moves outside the upper or lower forecast
levels, as may happen after an important news event,
then there may be a new price pattern emerging.
Support & Resistance Table:
This shows the values for the Support and Resistance
levels and the Forecast Lines for days 1-2, 2-5 and 5-10.
Conrmation: The forecast must always be con-
rmed by fundamental analysis and expert opinion.
Adjustment of the forecast will also need to be made
on breaking news.
Warning: Market Behaviour may suddenly change as
new information becomes available.
Disclaimer: The analysis is produced by mathematical
models on historical data alone and is not investment
advice. Every eort has been made to present the cor-
rect information and analyses. However neither Price
Dynamics Ltd or its sta are liable for any errors that
Contact Details: Price Dynamics Ltd. Adam Sotowicz.
Tel: 07935209599. 97 Judd Street, Bloomsbury, Lon-
don, WC1H 9JG. http://www.pricedynamicsltd.com pricedy-
Historical Part of the Chart: