Really looking at charts without any indicators or other markings is a key step in getting a feel for market direction, and for whether a market is trending or choppy. Geometric patterns, covered in Section 5, are larger-scale patterns in that they may comprise a large number of bars. In Section 5, patterns are classified as reversal, continuation, or breakout.

QUESTION 5.1   GBPUSD Daily (1)

1. What is the major pattern?
2. Is it a reversal, continuation, or breakout pattern?
3. Draw in the pattern.
4. Is it a textbook example?
5. Does the pattern have a target? If so, draw it in and specify if target was met.
6. Is there another pattern worth noting on the chart?
7. Is it a reversal or continuation pattern?
8. Draw in the pattern.

QUESTION 5.2   ATI Daily

1. What is the major pattern?
2. Is it a reversal, continuation, or breakout pattern?
3. Draw in the pattern, and name one of the lines you draw.
4. Does the pattern have a target? If so, draw it in, and specify if target was met.

QUESTION 5.3   EUR Daily

1. Find a large pattern on this chart. Did it start off as one sort of pattern and change into another? If so, discuss.
2. Find a medium-sized pattern on this chart. Name it.
3. Are they reversal, continuation, or breakout patterns?
4. Draw them in.
5. Are there any similar smaller patterns on the chart? If so, name them and draw in.

QUESTION 5.4   GILD Daily

1. What is the major pattern?
2. Is it a reversal, continuation, or breakout pattern?
3. Draw in the pattern.

QUESTION 5.5   IBM Daily

1. What is the major pattern?
2. Is it a reversal, continuation, or breakout pattern?
3. Draw in the pattern.
4. Is it a textbook example or not? Why?
5. Why isn't this pattern an inverse head and shoulders?

QUESTION 5.6   GBPUSD Daily (2)

1. What is the major pattern?
2. Is it a reversal, continuation, or breakout pattern?
3. Draw in the pattern.