Tickeron's AI Pattern Search Engine.

This ebook covers the following securities: stocks, ETFs, cryptocurrencies. The prices
of securities are constantly changing, but in some instances the changing prices
lead to the formation of 'shapes' that can be distinctly identified by key geometrical
elements. If a security confirms a pattern formation, investors can use that information
to determine what a security might do next assuming the pattern plays out.

A security pattern traces distinct movements of security prices that, once recognized,
helps investors make informed trading decisions. Patterns are identified by their key
geometrical elements, formed by changing security prices. For example, a Cup-and-Holder
pattern is identified when there are three points forming the cup (left edge, bottom of
the cup, and the right edge), with a security's price gradually falling then rising from left to
right. An additional move to the downside defines the handle of the cup (point 3 to 4), with
prices eventually breaking upwards to create the 'holder'. This pattern is a predictor of a
future upwards (bullish) movement of the security price.

Tickeron is bringing high-powered Artificial Intelligence (A.I.) technology to the
retail investment community that, in our opinion, rivals the technology and approach
used at major Wall Street firms. The Ph.D founders of Tickeron have spent several
years researching and building an Artificial Intelligence-based (A.I.-based) search
engine that allows active investors to perform thousands of hours of research and
pattern searches...in just minutes.

Here's how the A.I. works:

This e-book will walk you through real findings that the A.I. has produced. In doing
so, you will learn how the A.I. works, how it presents statistics and findings, and how
you can use these statistics and trade ideas to make informed investment decisions.

Step 1. A.I. scans about 5000 securities and ETFs, looking to detect any one
of 37 pattern types.

Artificial Intelligence (A.I.) identifies patterns by their key geometrical elements, formed
by changing security prices when plotted on a chart. A Cup-and-Holder pattern (see
image below) is identified when there are three points forming t he cup (left edge, bottom
of the cup, and the right edge), with a security's price gradually falling then rising
from left to right. An additional move to the downside defines the handle of the cup
(point 3 to 4), with prices eventually breaking upwards to create the "holder."

Our Pattern Search Engine has the ability to identify 37 different pattern types, all
of which are subjected to several million combinations of searches and backtests
overnight, to be viewed in the next market day.

Step 2: A.I. backtests all detected patterns.

The A.I. presents statistics to show the investor what would have happened if he/she
traded these patterns when they occurred in the past, which creates the 'probability
of success' for each trade. The automated analysis performed daily by our A.I. saves
investors the unfathomable amount of time necessary to identify these patterns and
backtest them manually.

Step 3: A.I. presents trading ideas with backtest and statistical results.

Finally, our A.I. provides investors with the "breakout price" for the security within the
pattern, which tells the investors where a trade can be initiated. A.I. also provides
the "target price" where the investor can potentially cash-in. To help investors keep
track of emerging and confirmed patterns and all of the trading ideas generated, the
A.I. presents all detected pattern and backtest statistics in the "Advacnced Search"
feature on tickeron.com (see page 89).

Cup-and-Handle Pattern

We'll start with the Cup-and-Handle (sometimes called Cup-and-Holder) pattern we
explained on the previous page. On the next page, you'll see a real world example
of a Cup-and-Holder pattern our A.I. identified, and how it would appear on Tickeron.
com. In this case, Tickeron's A.I. discovered the stock (ticker: AMRN) with the Cupand-
Handle pattern. In this case the A.I. is 96% confident that the stock will reach its
target price.

The Tickeron.com user can view the overall statistics for all 37 patterns in a multitude of ways. The criteria below can be adjusted with just a few clicks and customized to the user's liking:
• Pattern Type (choose from 37 options)
• Emerging or Confirmed? (see Definitions on page 82 of this eBook)
• Distance to Target Price (choose from a range of >5% to >15%)
• Confidence Level (select a minimum confidence level, from 20+% to 80+%) • Security Type (Stock | ETF | Forex | Crypto)

As the user adjusts each criteria, the statistics will change. Choosing lower distances to the target price and lower confidence levels will generally yield the most results. As you view the examples of patterns and their statistics on the following pages, note how the criteria such as "distance to target" and "confidence level" are adjusted, and how that affects the results.

The Broadening Bottom pattern is formed when a security price progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but little or no direction. It potentially indicates growing investor nervousness and indecisiveness.

Once the price breaks out from the top pattern boundary, day traders and swing trader] should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is difference between the pattern's highest high and its lowest low. To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Broadening Top pattern forms when a security price progressively makes higher highs (1, 3) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Top from a Broadening Bottom is that the price of the security is rising prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but little or no direction. It potentially indicates growing investor nervousness and indecisiveness.

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is difference between the pattern's highest high and its lowest low. To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Broadening Wedge Ascending pattern forms when a security price progressively makes higher highs (1, 3) and higher lows (2, 4), following two widening trend lines. This pattern may form when large investors spread their buying over a period of time. The theory goes that after initial buying occurs, other market participants react to the rising price and jump on the bandwagon to participate. Then value investors begin to sell, believing the price has risen too much, which spurs the original large investor to resume buying again. Once these activities stop, the price may break out in either direction.

Once price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for this formation by adding the height of the pattern to the upward breakout level. Pattern height is the difference between the breakout price (the highest high within the pattern) and the highest low.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Broadening Wedge Descending pattern forms when a security price makes lower lows (1, 3, 5) and lower highs (2, 4), forming a downtrend. This pattern may form when large investors spread out their selling over a period of time.

When the initial selling occurs, other market participants react to the falling price and jump on the bandwagon to participate. Then the value investors begin to buy, believing the price has fallen too much, which spurs the original large investor to resume buying again as well.

Once price breaks out from the lowest high in the pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price level. The upward Breakout is the lower of the two highs, and the Target price is the higher high (it is also the top of the pattern).

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Cup-and-Holder (sometimes called Cup-and-Handle) pattern is formed when a security price initially declines and then rises to form a "U"-like rounded shape (1, 2, 3, also known as the Cup). Once it forms the right lip, it is characterized by short, relatively straight price decline (from 3 to 4) forming the handle.

The declining handle potentially forms due to mounting selling pressure created when the security tests its high at the right cup lip. After the sellers give up, the security has the potential to breakout to the upside.

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for the Cup-and-Holder pattern by adding the pattern's height (the difference between the highest high and the bottom of the cup) to the price at the right cup lip. The confirmation move is when the security moves past the breakout price above the right cup lip.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Rising Flag (or Bullish Flag) pattern looks like a flag with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the parallel lines through points 2-4 and 3-5. After the consolidation, the previous trend resumes.

This type of formation happens when a security's price is expected to move in a rising trend line, but some volatility along the way creates a consolidation period.

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying the security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the initial rise between points 1 and 2 to the breakout price.

The breakout price level for the Bullish Flag pattern is the last point touching the top line (point 4).
When trading, wait for the confirmation move, which is when the price rises above the Breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Head-and-Shoulders Bottom pattern is formed when a security price creates a center trough (the inverted head, labeled 3) and the left and right inverted shoulders (1, 5). As you can see, this pattern is vertically symmetrical to the usual Head-andShoulders pattern and is formed when a security is testing new lows on a downtrend. After reaching the lowest low (the Head, 3) the next low is shallower and the trend reverses course to the upside.

This type of formation happens when investors create a minimum support level for a security price, and ultimately trading consolidates into an UP trend.

Once the security price breaks out from the top pattern boundary (the neckline), day traders and swing traders should trade with an UP trend. Consider buying the security or a call option at the low once the pattern is confirmed, which is known as the breakout point. The pattern is confirmed when the price breaks above the Neckline (2,4). To identify an exit, compute the target price level by adding pattern height (the distance between the head (3) and the Neckline (2, 4)) to the neckline price level.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Rising Pennant (or Bullish Pennant) pattern looks like a pennant with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the converging lines through points 2-4 and 3-5. After the consolidation, the previous trend resumes.

This type of formation happens when anticipation of an uptrend is high, and when a security's price consolidates within a range. It indicates growing investor interest in a potentially explosive uptrend.

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout. The breakout price level for the Rising Pennant pattern is the last point touching the top line (4). To identify an exit, compute the target price by adding the initial rise between points 1 and 2 to the breakout price. When trading, wait for the confirmation move, which is when the price rises above the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Rectangle Bottom pattern forms when a security price is stuck in a range bound motion. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first - buyers or sellers - the price can breakout in either direction.

This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong downtrend leading into the formation.

If the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price level by adding the pattern height (which is the distance between the horizontal lines) to the breakout price.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.

The Rectangle Top pattern forms when a security price is stuck in a range bound motion. Two horizontal lines (top: 1, 3, 5) and (bottom: 2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first - buyers or sellers - the price can breakout in either direction.

This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation.

If the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price level by adding the pattern height (which is the distance between the horizontal line (from top to bottom) and add it from the breakout price.

To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price

The Three Rising Valleys pattern forms when three minor Lows (1, 3, 5) arranged
along an upward sloping trend line. It often appears at the end of a declining trend
– an indication that buyers are overtaking sellers, which ultimately pushes the price
higher.
This type of formation happens when investors shift into buying mode following a
consolidation period.

Once the price breaks out from the top pattern boundary, day traders and swing traders
should trade with an UP trend. Consider buying a security or a call option at the
breakout price level. To identify an exit, compute the target price level by adding the
pattern's height (highest price minus the lowest price within the pattern) to the breakout
level (the highest high). When trading, wait for the confirmation move, which is
when the price rises above the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Ascending Triangle pattern forms when a security price tests a resistance level
and creates a horizontal top line (1, 3, 5), with an upward-sloping bottom line (2, 4)
formed by a rising support level. The breakout can either be up or down, and it will
determine whether the target price is higher or lower.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in
control. When a security price consolidates around a certain level, it may indicate
growing investor confidence for a significant uptrend.

Once price breaks outside of the triangle, day traders and swing traders should
trade with an UP trend. Consider buying a security at the upward breakout level. To
identify an exit, compute the target price by adding the pattern height to the breakout
point. For upward breakouts, the level is the top horizontal line (1, 3, 5). The pattern
height can be calculated by taking the difference between the resistance level set by
the horizontal line, and the lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Descending Triangle pattern is formed when a security price establishes a support
level (1, 3, 5) and bounces off that level to a declining resistance level, creating
a down-sloping top line (2, 4). The breakout can either be up or down, depending if
the resistance or highest support level is broken first.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in
control.

Once the price breaks out from the top pattern boundary, day traders and swing
traders should trade with an UP trend. Consider buying a security or a call option at
the breakout price level. To identify an exit, compute the target price by adding the
pattern height from breakout point. For upward breakouts the level is the highest
high within the triangle (2). Pattern height is the difference between the level of the
bottom horizontal line and the highest high.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Symmetrical Triangle Bottom pattern forms when a security price fails to retest
a high or a low and ultimately forms two narrowing trend lines. As the support and
resistance levels consolidate, it forms a triangle (1-5). Symmetrical Triangles are
characterized by the upper line sloping downward and lower line sloping upward.
The price movement inside the triangle should fill the shape with some uniformity,
without leaving large blank areas.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout).

If the price breaks out from the top pattern boundary, day traders and swing traders
should trade with an UP trend. Consider buying a security or a call option at
the breakout price level. To identify an exit, compute the target price by adding the
pattern height from the breakout point. The height of the pattern is the difference
between the highest high and lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Symmetrical Triangle Top pattern forms when a security price fails to retest a
high or low and ultimately forms two narrowing trend lines. The price is expected to
move up or down past the triangle depending on which line is broken first. The price
movement inside the triangle should fill the shape with some uniformity, without leaving
large blank areas.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout).

Once price breaks out from the top pattern boundary, day traders and swing traders
should trade with an UP trend. Consider buying a security or a call option at
the breakout price level. To identify an exit, compute the target price by adding the
pattern height to the breakout point. The pattern height is the difference between the
highest high and lowest low within the pattern.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Triple Bottom pattern appears when there are three distinct low points (1, 3, 5)
that represent a consistent support level. The security tests the support level over
time but eventually breaks resistance and makes a strong move to the upside.

This type of formation happens when sellers can not break the support price, and
market participants eventually pour in.

Once the price breaks out from the top pattern boundary, day traders and swing
traders should trade with an UP trend. Consider buying a security or a call option at
the breakout price level. To identify an exit, compute the target price by adding the
pattern's height (highest price minus the bottom price support level) to the breakout
level - the highest high. When trading, wait for the confirmation move, which is when
the price rises above the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Falling Wedge pattern forms when a security's price appears to be spiraling downward,
and two down-sloping lines are created with the price hitting lower lows (1, 3, 5)
and lower highs (2, 4). The two pattern lines intersect to form a narrow triangle. Unlike
Descending Triangle patterns, however, both lines need to have a distinct downward
slope, with the top line having a steeper decline.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in or sell
out, and the price can move up or down with big volumes (leading up to the breakout).

If the price breaks out as shown on the chart, day traders and swing traders should
trade with an UP trend. Consider buying a security or a call option at the breakout
point. To identify an exit, set the target price as the top of the formation (the highest
high). The confirmation move is when the price breaks out of the last high touching
the top line.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Rising Wedge pattern forms when prices seem to be spiraling upward, and two
upward sloping trend lines are created with the price hitting higher highs (1, 3, 5)
and higher lows (2,4). The two pattern lines intersect to form an upward sloping triangle.
Unlike ascending triangle patterns, however, both lines need to have a distinct
upward slope, with the bottom line having a steeper slope.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout).

If the price breaks out from the top pattern boundary, day traders and swing traders
should trade with an UP trend. Consider buying a security or a call option at the
breakout price level. To identify an Exit, add the pattern height to the breakout price
level. The pattern height can be calculated by taking the difference between the
highest high and the lowest low in the pattern.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to sell at or below the breakout price.

The Broadening Bottom pattern forms when a security price makes higher highs (2,
4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected
to move up or down past the pattern depending on which line is broken first. What
distinguishes a Broadening Bottom from a Broadening Top is that the price of the
security is declining prior to entering the pattern formation.

This type of formation happens when volatility is high or increasing, and when a
security's price is moving with high volatility but little or no direction. It potentially
indicates growing investor nervousness and indecisiveness.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. To identify an exit, compute the
Target Price by subtracting the pattern height from the breakout point. Pattern height
is difference between patterns highest high and its lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Broadening Top pattern forms when a security price makes higher highs (1, 3,
5) and lower lows (2, 4) following two widening trend lines. The price is expected
to move up or down past the pattern depending on which line is broken first. What
distinguishes a Broadening Top from a Broadening Bottom is that the price of the
security is rising prior to entering the pattern formation.

This type of formation happens when volatility is high or increasing, and when a security's
price is moving with high volatility but little or no direction. It indicates growing
investor nervousness and indecisiveness.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. To identify an exit, compute the
target price by subtracting the pattern height from breakout point. The pattern height
is difference between the pattern's highest high and its lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Broadening Wedge Ascending pattern forms when a security price progressively
makes higher highs (1, 3, 5) and higher lows (2, 4), following two widening trend
lines. This pattern may form when large investors spread their buying over a period
of time.

When initial buying occurs, other market participants react to rising price and jump
on the bandwagon to participate. Then value investors begin to sell, believing the
price has risen too much, which spurs the original large investor to resume buying
again. Once these activities stop, the price may break out in either direction.

If the price breaks out as shown on the chart, day traders and swing traders should
trade with a DOWN trend. Consider selling the security short or buying a put option
at the downward breakout price level. To identify an exit, compute the target price for
this formation by subtracting the pattern height from the breakout price. The pattern
height is the difference between the highest high and the lowest low. The downward
breakout level is the last low that touches the bottom line (4).

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Broadening Wedge Descending pattern forms when a security price makes
lower lows (1, 3) and lower highs (2, 4), forming two downward sloping lines that
expand over time (kind of like a pointed down megaphone shape). This pattern may
form when large investors spread out their selling over a period of time, and the
Breakout can occur in either direction.

When the initial selling occurs, other market participants react to falling price and
jump on the bandwagon to participate. Then the value investors begin to sell, believing
the price has not fallen enough, which spurs the original large investor to resume
selling again.

If price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. To identify an exit, compute the
target price by assessing the difference between the pattern's lowest high (2) and
the breakout level. That is the pattern height. The target price can be calculating by
subtracting the pattern height from the downward breakout level, which is the last
low touching the bottom line.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Inverted Cup-and-Holder (sometimes called Inverted Cup-and-Handle) pattern
forms when prices rise then decline to create an upside-down "U"-like shape (1, 2, 3,
also known as the Cup), followed by a shorter relatively straight price increase that
bounces from the right lip (from 3 to 4, creating the Handle).

The rising handle forms as a result of mounting buying pressure created when the
security retests a low at the right lip of the cup. Once the buyers give up, sellers take
over and the security has the potential to decline rapidly.

If the price breaks out from the top pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying a put
option at the downward breakout level. To identify an exit, compute the target price
by subtracting the pattern's height (the difference between the highest price and
the support levels) from the price at the right cup lip. The confirmation move is the
breakout of the price below the right cup lip.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Dead Cat Bounce pattern appears when a security's price falls quickly but has a
temporary "v-shaped" recovery before resuming its downward trend. The temporary
bounce (from point 2 to point 3) may be explained by shorters covering their positions,
or buying by investors who think the price has already reached a low point.

It is important to wait for the confirmation move, which is when the price breaks below
the low where the dead cat bounce occurred (point 2).

If the price breaks out below the price where the dead cat bounce occurs, then day
traders and swing traders should trade with a DOWN trend. Consider selling the security
short or buying a put option at the downward breakout price level. To identify
an exit, compute the pattern's height by measuring the initial fall (from points 1 to 2).
Then calculate the target price by subtracting the pattern height from the breakout
price level. When trading, wait for the confirmation move - prices falling below the
breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Falling Flag (or Bearish Flag) pattern looks like a flag with the mast turned
upside down (the mast points up). The pattern forms when falling prices experience
a consolidation period, and the price moves within a narrow range defined by the
parallel lines through points 2-4 and 3-5. After the consolidation, the previous trend
resumes.

This type of formation happens when anticipation of a downtrend is high, and when a
security's price consolidates during a broader decline. It may indicate growing investor
concern of an impending downtrend.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. The breakout price level for the
Falling Flag pattern is the highest low reached within the pattern (4). To identify an
exit, calculate the target price by subtracting the initial fall between points 1 and 2
from the breakout price. When trading, wait for the confirmation move, which is when
the price falls below the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Head-and-Shoulders Top pattern forms when a security is testing new highs on
an uptrend, but fails to retest its highest high and break upward. Mounting selling
pressure takes over each time a security approaches its high. The pattern forms with
a center peak (the Head, labeled 3) and left and right Shoulders (1, 5). Eventually
the security stops testing highs and reverses trend into a decline.

Consider selling the security short before it declines or buying a put option to benefit
from the price decline. To improve success chances, wait for a confirmation move:
allow the price to break below the Neckline level (2, 4), which is calculated as the
average of the two lows between the Head and the Shoulders. To estimate an exit,
calculate the pattern height by taking the price difference between the Head (3) and
the Neckline price (4), and subtract that from the Neckline price level/breakout price
level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside
down (the mast points up). It forms when falling prices experience a consolidation
period, and the price moves within a narrow range defined by the converging lines
through points 2-4 and 3-5. After the consolidation, the previous trend resumes.

This type of formation happens when anticipation of downtrend is high, and when a
security's price consolidates during a declining trend. It may indicate growing investor
concern of an impending downtrend.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying a put
option at the downward breakout price level. The breakout price level for the Falling
Pennant pattern is the last point touching the bottom pattern line (point 4). To identify an
exit, calculate the pattern height which is the initial fall between points 1 and 2. Then,
subtract the pattern height from the breakout price. When trading, wait for the confirmation
move, which is when the price falls below the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider placing
a stop order to buy back a short position or sell a put option at or above the breakout
price.

The Rectangle Bottom pattern forms when a security's price is stuck in a rangebound
motion, bouncing between support and resistance levels. Two horizontal lines
(1, 3, 5) and (2, 4) form the pattern. Depending on who gives up first - buyers or
sellers - the price can Breakout in either direction.

This pattern is commonly associated with directionless markets. Usually the pattern
performs better when there is a strong downtrend leading into the formation.

If price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling the security short or buying a put
option at the downward breakout price level. To identify an exit, calculate the pattern's
height by taking the difference between the support and resistance levels. Then, subtract
the pattern height from the breakout price to calculate the target price.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Rectangle Top pattern forms when a security's price is stuck in a range-bound
motion, and it bounces between support and resistance levels. Two horizontal lines
are formed (top: 1, 3, 5) and (bottom: 2, 4) as a result. Depending on who gives up
first – buyers or sellers – the price can Breakout in either direction.

This pattern is commonly associated with directionless markets. Usually the pattern
performs better when there is a strong uptrend leading into the formation.

If price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with a DOWN trend. Consider selling a security short or buying a put
option at the downward breakout price level. To identify an exit, calculate the pattern
height by taking the difference between the support and resistance levels. Then,
subtract the pattern height from the breakout price to estimate the target price.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Three Falling Peaks pattern forms when three minor Highs (1, 3, 5) arrange
along a downward-sloping trend line.

This pattern often emerges at the end of a rising trend, when a security slowly rolls
over. It potentially indicates sellers moving-in to replace buyers, which pushes the
price lower.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. To identify an exit, compute the
target price by subtracting the pattern's height (maximum price minus minimum price
within the pattern) from the breakout level - the lowest low. When trading, wait for
the confirmation move, which is when the price moves below the breakout level.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Ascending Triangle pattern has a horizontal top line (1, 3, 5) representing a resistance
level, and an upward-sloping bottom line (2, 4). The Breakout can either be
up or down, and the direction of the Breakout will determine whether the Target Price
is higher or lower.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in
control. When a security's price consolidates around highs it might indicate that a
significant downtrend is ahead.

If the price breaks out from the bottom pattern boundary, day traders and swing
traders should trade with the DOWN trend. Consider selling the security short or
buying a put option on the downward breakout price. To identify an exit, compute the
target price by subtracting the pattern height from the breakout point. For downward
breakouts the breakout level is the price at the lowest low within the triangle (2). The
pattern height is the difference between the level of the top horizontal line and the
lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Descending Triangle pattern has a horizontal bottom (1, 3, 5) which represents
the support level, and a down-sloping top line (2, 4). The breakout can be either up
or down and the direction of the breakout determines which corresponding price
level is the target.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in
control. When a security's price consolidates in a somewhat volatile fashion, it may
indicate growing investor concern that the price is set to break out.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling the security short or buying
a put option at the downward breakout price level. To identify an exit, compute the
target price, by subtracting the pattern height from breakout point. For downward
breakouts the breakout level is the bottom horizontal line (1, 3, 5). Pattern height is
the difference between the level of the bottom horizontal line and the highest high.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Symmetrical Triangle Bottom pattern forms when a security's price fails to retest
a high or a low and ultimately forms two narrowing trend lines. Points 1- 5 form the
triangle patterns. The price is expected to move up or down past the triangle depending
on which line is broken first.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout).

If price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling the security short or buying a
put option at the downward breakout price level. To identify an exit, calculate the
pattern height by taking the difference between the highest high and the lowest low.
Then, calculate the target price by subtracting the pattern height from the breakout
price, which is the lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

The Symmetrical Triangle Top pattern forms when a security price fails to retest a
high or low and ultimately forms two narrowing trend lines. The price is expected to
move up or down past the triangle depending on which line is broken first.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout). The price movement inside the triangle should fill the shape with some
uniformity, without leaving large blank areas.

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling a security short or buying a put option
at the downward breakout price level. To identify an exit, subtract the pattern height
from the breakout level to compute the target price. The pattern height is the difference
between the highest high and lowest low.

To limit potential loss when price suddenly goes in the wrong direction, consider placing
a stop order to buy back a short position or sell a put option at or above the breakout
price.

The Triple Tops pattern appears when there are three distinct minor Highs (1, 3, 5) at
about the same price level. The security is testing the upper resistance level (horizontal
line formed by 1-3-5), but the price ultimately declines as buyers give up.

This type of formation potentially happens when investors can not break the resistance
price. There is a distinct possibility that market participants will sell out, and
the price can move down with big volumes (leading up to the breakout).

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling the security short or buying a put
option at a downward breakout price level. To identify an exit, calculate the target price
by subtracting the pattern height from the breakout level. The pattern's height is the
highest high minus the lowest low, or the bottom resistance within the pattern. When
trading, wait for the confirmation move, which is when the price falls below the breakout
level.

To limit potential loss when price suddenly goes in the wrong direction, consider placing
a stop order to buy back a short position or sell a put option at or above the breakout
price.

The Falling Wedge pattern forms when prices appear to spiral downward, with lower
lows (1, 3, 5) and lower highs (2, 4) creating two down-sloping trend lines that intersect
to form a triangle. Unlike Descending Triangle patterns, however, both lines
need to have a distinct downward slope, with the top line having a steeper decline.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
However, there is a distinct possibility that market participants will either pour in
or sell out, and the price can move up or down with big volumes (leading up to the
breakout).

If the price breaks out from the bottom pattern boundary, day traders and swing traders
should trade with the DOWN trend. Consider selling a security short or buying a put
option at the downward breakout price level. To identify an exit, compute the target rice
by subtracting the pattern height from the breakout level. The pattern height is the difference
between the highest high and the lowest low within the pattern, and the breakout
level is the lowest point within the triangle.

To limit potential loss when price suddenly goes in the wrong direction, consider placing
a stop order to buy back a short position or sell a put option at or above the breakout
price.

The Rising Wedge pattern forms when prices appear to spiral upward, with higher
highs (1, 3, 5) and higher lows (2,4) creating two up-sloping trend lines that intersect
to form a triangle. Unlike ascending triangle patterns, both lines need to have a distinct
upward slope, with the bottom line having a steeper slope.

This pattern is commonly associated with directionless markets, since the contraction
(narrowing) of the market range signals that neither bulls nor bears are in control.
There is a distinct possibility that market participants will sell out, and the price
can move down with big volumes (leading up to the breakout).

If the price breaks out from the bottom pattern boundary, day traders and swing
traders should trade with the trend DOWN. Consider selling a security or buying a
put option on downward breakout. To identify an exit, compute the target price for a
Rising Wedge formation, take the highest high as the downward Breakout point and
subtract the formation height to it. Formation height is the difference between the
highest high and lowest low within the pattern.

To limit potential loss when price suddenly goes in the wrong direction, consider
placing a stop order to buy back a short position or sell a put option at or above the
breakout price.

Before diving into specific examples of security trading patterns and reviewing examples
of the results Tickeron's A.I. has produced (page 54 onward), it will be helpful to
get a handle on some of the terminology used in this ebook and on tickeron.com.

Each pattern type is unique and includes multiple geometry-based conditions, all of
which are tied to 'shapes' created by a security's changing price over time. When all
geometric conditions of a security's changing price are met, the pattern will be identified
by Tickeron's A.I. as "Emerging."

As security's price starts to form a pattern, it may eventually hit a very important
level called the "breakout." The 'breakout price' marks a very important level that
confirms the security's price is indeed moving as predicted. When that happens, the
A.I. will identify the pattern as "Confirmed."

Once a pattern has 'emerged,' and the security price continues to fluctuate, it has
the potential to move in the direction predicted by the pattern type. Tickeron's A.I.
will calculate a Breakout Price based on the pattern type, which if reached will 'confirm'
the pattern.

Once a pattern has 'emerged', Tickeron A.I. determines Target price which is the precalculated
goal to be achieved. If this goal is reached then this pattern will be called
successful. An investor will generally make a trade in anticipation that a security is
going to reach its Target price.

This term is in reference to the "distance to target price," meaning how much the
security has to move to go from its current price to its target price. E.g, if the current
price is $10 and the security's target price is $15, the Distance to Target is $5.

Once Tickeron's A.I. has identified a pattern as 'emerged' or 'confirmed,' the A.I. will
monitor the security price and calculate a Confidence Level. The confidence level
reflects the A.I.'s confidence/likelihood that the security will move towards and eventually
reach the pattern's target price.

When Tickeron's A.I. identifies a pattern, it will establish a timeframe for which it expects
the security to reach the target price. If the pattern fails to reach its target price
during the established timeframe, the pattern will expire.

If a pattern is recognized by Tickeron's A.I. and the security reaches its target price
before the pattern expires, it is labeled a Successful Pattern.

If a pattern is recognized by Tickeron's A.I. but the security does not reach its target
price before the pattern expires, it is labeled a Failed Pattern.

For bullish patterns, the gain (or loss) is the difference between the entry price and
the exit price. It is calculated as a percentage: (Exit Price - Entry Price)/Entry Price.
The exit price could either be the target price or the price at expiration.

For bearish patterns, the assumed trade is a short sale of the security, and as such
a gain would mean that the entry price is higher than the exit price. The gain or loss
is calculated as a percentage: (Entry Price - Exit Price)/Entry Price. The exit price
could be either the target price or the price at expiration.

An interactive table providing statistics for all security tickers that meet a certain criteria.
For example, a tickeron.com user can search for a pattern type and specify a
confidence level, and the website will generate all of the securities that meet that criteria.
The overall stats shown for each security ticker are: number of patterns recognized,
number of pattern trades that have reached the target price, average % return
if the pattern was successful, and average % return if the pattern did not succeed.

Tickeron's A.I. has the ability to backtest to find patterns in the security market. For
each pattern and/or ticker selected, the A.I. will look back several years, to identify
how many times that pattern has been detected.

This number indicates how many times over the analyzed time period that a security
ticker reached its target price within a particular pattern.

The average return generated by a security if the pattern proves successful, i.e., if
the target price is reached. For bullish patterns, the target price is higher than the
current price, and thus a positive return is the desired outcome. For bearish patterns,
the target price is lower than the current price, and thus a negative return is
the desired outcome. The average return is based on the average of all successful
patterns over the time period analyzed.

The average return generated by a security within a pattern, if the pattern does not
prove successful (i.e., does not reach its target price or moves in the opposite direction).
The average return is based on the average of all failed patterns over the time
period analyzed.

This metric measures the average return generated by a successful pattern, and it
also measures the average amount of time that elapsed from the pattern confirmation
to the security reaching either its target price or the pattern expiring.

The statistics generated by Tickeron's A.I. for a specific company, from the year
2000 - present day.

The main feature of Tickeron's Artificial Intelligence (A.I.) Search Engine is Advanced
Search. The Advanced Search is every user's "control center" - it is essentially
where the user will receive all of the pattern recognitions made by the Tickeron's
Artificial Intelligence tool. The user can determine which patterns they wish to receive
in their Inbox by editing their preferences in Search Criteria. The graphic below
demonstrates how this feature appears on the website:

Once a user receives a pattern notification, he or she can Bookmark it to follow it's
progress and development over time. Will the pattern result in a trade opportunity? A
user can bookmark it to find out:

The patterns presented in this ebook were detected by Tickeron's Artificial Intelligence.
Investors can use this A.I. to track security patterns of interest and to be informed
when securities or other securities emerge or confirm within tho se patterns. The A.I.
will also provide the user with supporting information, such as pattern confidence levels,
predicted target prices, and historical statistics. This additional information allows
users to monitor the pattern's evolution, to bookmark favorites, and to potentially take
action in trading/brokerage accounts to benefit from the forecas ted price movements.
Interested investors can learn more by visiting www.tickeron.com.

The A.I. identifies patterns by their key geometrical elements, formed by changing
security prices when plotted on a chart. The A.I. does not take into consideration
security fundamentals, expert recommendations, market conditions, and so forth.
Trading in securities and other securities involves the risk of loss.

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow
University and has a long track record as an entrepreneur, investor, manager, and
mathematician. His professional expertise is in applied mathematics, mathematical
modeling, system and pattern analysis, and software and hardware system
integration. He has served as CEO of several hi-tech start-up companies and
nonprofit organizations, which has given him proven capabilities in business strategy
for high-tech start-up companies, market assessment, company formation, team
building, product development, marketing and sales. He has published numerous
articles in journals and magazines on related fields. As a retail investor, he spent
15 years in development of his proprietary trading and quantitative algorithms (now
Tickeron's A.I.), which brought him significant returns in trading the security market.
His current work and goal in founding Tickeron is to bring professional, sophisticated
security market analysis capabilities to retail investors with an easy-to-use interface.

Dr. Alexeev received his Ph.D. in Mathematics from Tulane University (New
Orleans, Louisiana). He has 17 years of experience in the investment industry in
various capacities: multiple aspects of quantitative research, portfolio analysis,
risk modeling, allocation techniques, and architecture of complex position-level
processing systems. Dr. Alexeev has held positions of Chief Investment Officer with
a billion-dollar alternative investments fund-of-funds, Managing Director and Head
of Quantitative Research of a hedge fund platform, and, early in his career, as an
Equity Research Analyst. Dr. Alexeev currently runs a consulting firm dedicated
to finding solutions to complex problems that his clients face, such as creating
customized portfolios with desired properties or building neural network architecture
for price pattern recognition.

Although our services incorporate historical financial information, past financial
performance is not a guarantee or indicator of future results. Moreover, although
we believe the historical information and strategies we use are reliable, we cannot
guarantee them. Our services are frameworks to be used in your own investment
decisions, but they are not a substitute for your own informed judgment or decisions.
Moreover, they provide only some of the resources that could possibly assist you in
making your decisions. You may accept, reject or modify the recommendations we
provide, and you may consult with other advisors or professionals (at your expense)
as you see fit regarding your personal circumstances. We do not and cannot guarantee
the future performance of your investments. We do not promise that investments
we recommend will be profitable. All investments are subject to various market,
currency, economic, political and business risks. We do not guarantee the suitability
or value of any investment information or strategy. We do not recommend any
brokers or dealers for executing transactions or maintaining accounts and do not
provide a mechanism for placing trades through this site. We are not responsible for
advice or information you receive from anyone through the use of this site. We are
not responsible for any transfers of money to any member outside of our payment
system. Additional information can be found in our Terms of Use, Client Agreement,
and Privacy Policy.

All graphs and data on our website and marketing materials are based on simulated
or hypothetical performance that have certain inherent limitations. Unlike the graphs
shown in an actual performance record, these graphs do not represent actual trading.
Any trades on websites are recorded paper trades and have not been executed.
Simulated or hypothetical trading algorithms in general are also subject to the fact
that they might be designed with the benefit of some hindsight during backtesting.
No representations are made that any actual account will or is likely to achieve any
profits or losses similar to these graphs or data being shown.

In addition, hypothetical trading does not involve financial risk, and no hypothetical
trading can completely account for the impact of financial risk in actual trading. The
ability to withstand losses are material points which can adversely affect actual trading
results. There are factors related to the markets in general or to the implementation
of any specific trading algorithms, which cannot be fully accounted for in the
preparation of hypothetical performance results and all of which can adversely affect
actual trading results.

TRADING IS RISKY. Past performance is not necessarily indicative of future results.
Actively trading in the market may result in the losses of entire principal amount.

The following are material assumptions used when calculating any hypothetical
graphs and presenting results that appear on our web site:

• Profits are reinvested. We assume profits (when there are profits) are reinvested
in the trading algorithms.
• Any trading fees and commissions are not included.