|
|
Website Information
- PatternPower is updated daily around 7:00pm ET.
- PatternPower analysis uses two timeframes: end-of-day and intra-day.
- During non-trading hours, the whole site uses end-of-day data.
- During normal trading hours, the following sections use intra-day data (15-minute delayed quotes):
ENGINE
ANALYSIS
PORTFOLIO
The rest uses end-of-day data (patterns based on close from prior trading day).
- 2 criteria for stocks to be covered by Pattern Power:
1. Price is $7 or higher
2. Have sufficient history (based on number of past patterns rather than trading dates)
Merrill's Pattern
- Stocks are categorized into 16 W patterns (W1, W2, ..., W16) and 16 M patterns (M1, M2, ..., M16).
- The patterns are ordered from the weakest (1) to the strongest (16).
Traditional Technical Patterns
M and W patterns may also be categorized in traditional technical analysis terms as follows:
-
Ascending: M15, M16, W14 and W16
-
Descending: M1, M3, W1 and W2
-
Head and Shoulders: W6, W7, W9, W11, W13 and W15
-
Inverted Head and Shoulders: M2, M4, M6, M8 and M10
-
Triangles: M13 and W4
-
Broadening: M5 and W12
Pattern Engine
Pattern Type = RW
Completion Value = -1%
Signal Value = $86.53
Target Value = $108.90
Last Close = $85.75
Projected Range Diff. = $22.37
Pattern Type = RW
Completion Value = 24%
Signal Value = $223.09
Target Value = $280.54
Last Close = $237.00
Projected Range Diff. = $57.45 
Pattern
Type = RW
Completion Value = 103%
Signal Value = $27.96
Target Value = $34.87
Last Close = $35.75
Projected Range Diff. = $6.91
* Note: little box next to RW
is half blue and half green - signifies that stock has
completed at least 100% of the projected range within a
single day. 
Pattern
Type = W
Completion Value = -1%
Signal Value = $102.50
Target Value = $118.21
Last Close = $101.94
Projected Range Diff. = $15.71 
Pattern
Type = W
Completion Value = 15%
Signal Value = $42.97
Target Value = $56.68
Last Close = $45.06
Projected Range Diff. = $13.71  Pattern
Type = W
Completion Value = 152%
Signal Value = $4.44
Target Value = $5.66
Last Close = $8.63
Projected Range Diff. = $1.22
* Note: little box next to W is
completely blue - signifies that stock has completed at
least 100% of the projected range. 
Pattern
Type = RM
Completion Value = -1%
Signal Value = $102.32
Target Value = $86.41
Last Close = $102.88
Projected Range Diff. = $15.91 
Pattern
Type = RM
Completion Value = 4%
Signal Value = $198.82
Target Value = $161.69
Last Close = $197.38
Projected Range Diff. = $37.13 
Pattern
Type = RM
Completion Value = 103%
Signal Value = $16.94
Target Value = $14.75
Last Close = $14.38
Projected Range Diff. = $2.19
* Note: little box next to RM
is half blue and half red - signifies that stock has
completed at least 100% of the projected range within a
single day. 
Pattern
Type = M
Completion Value = -2%
Signal Value = $63.39
Target Value = $54.22
Last Close = $64.50
Projected Range Diff. = $9.17 
Pattern
Type = M
Completion Value = 43%
Signal Value = $105.98
Target Value = $89.92
Last Close = $99.06
Projected Range Diff. = $16.06 
Pattern
Type = M
Completion Value = 105%
Signal Value = $84.71
Target Value = $78.62
Last Close = $74.75
Projected Range Diff. = $6.09
* Note: little box next to M is
completely blue - signifies that stock has completed at
least 100% of the projected range.
Pattern Reversals
- The qualifier R, for reversal, may precede all M and W patterns.
- RW designates a stock reversed from an M pattern within the last trading day.
- RM designates a stock reversed from a W pattern within the last trading day.
- The R designation is dropped the second day after the reversal.
Pattern Display
- PatternPower data is displayed using a visual tool, the TD Image.
- The TD Image has 6 important features: pattern type, signal value, target value, completion value, last price, and projected range difference.
- The signal value is the price at which a reversal occurred and the trade was initiated.
- The target value is the target price for the current pattern. It is projected using that stock's trading characteristics.
- The completion value is the stock's current position between the signal value and the target value in percentage terms.
- The projected range difference is the range in points between the signal value and target value.
|
|
