CHART DECODER
GLOBAL CHART CLASSROOM
WEEKLY EDITION
www.chartdecoder.com
Gautam Mazumdar
Email: [email protected] Twitter: @gautam_icma
Issue: 5 Week: 17-August-2025
Welcome to Issue 5 of Global Chart Classroom
Dear Reader,
The market is a moving target—and that is exactly why we aim before we fire.
In the past week, equities tested the patience of trend followers, currency pairs danced
to central bank whispers, and commodities reminded us that “quiet” does not mean
“inactive.” Some breakouts ran without looking back, while others stalled at the first
hurdle—each leaving behind a trail of clues for those willing to read them.
Issue 5 sharpens the lens again: we decode fresh setups with conviction, track reversals
that may have only just begun, and continue our long watch on Visa as its price narrative
evolves in real time. Commodities weave their own parallel plotlines, and this week’s
pattern study dissects a structure still unfolding—giving you the chance to see it before
the textbooks do.
If this is your first issue, welcome to the discipline of structured observation. If you have
been with us since the opening bell of Issue 1, you already know—this is not about
chasing the market; it is about letting the market reveal itself. Every chart is a paragraph,
every setup a statement, and together they form a story that is still being written.
Warmly,
Gautam Mazumdar
Editor – Global Chart Classroom
www.chartdecoder.com
Table Of Contents:
Contents
1 Global Moves........................................................................................................................... 1
2 Global Moves Decoded – Market Takeaway ............................................................................. 2
3 Macro Decoder ........................................................................................................................ 4
4 Price Action Decoder................................................................................................................ 6
5 Indicator Decoded: Spotting Unusual Activity with Relative Volume (RVOL) ........................... 10
6 One Chart in Focus: Decoded Over Time ................................................................................. 12
7 Research Decoded: When Technical Indicators Meet Neural Networks ................................... 15
8 Pattern Decoded: WMB’s Potential Head & Shoulders in the Making ..................................... 16
9 Your Voice Matters ................................................................................................................ 17
Global Chart Classroom Issue 5 1
1 Global Moves
Weekly Weekly Up/Down
Country Indices
Close Change (%)
S&P500 6449.79 +60.35 +0.94
Dow Jones (DJIA) 44949 +770 +1.74
Nasdaq 100 23712 +100.80 +0.43
FTSE100 9146.8 +52.2 +0.57
DAX 24359 +196.44 +0.81
Nikkei 225 43430 +1110 +2.62
Hang Seng 25163 +223 +0.90
MSCI World
131.28 +1.67 +1.29
(Proxy: LSE: MXWO)
US 10-Year Yield 4.322 +0.037 +0.86
US Dollar Index 97.839 -0.425 -0.43
Gold 3335.7 -62.05 -1.83
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 2
2 Global Moves Decoded – Market Takeaway
A week where geopolitics made headlines, Asia kept the rally torch burning, and quiet
forces shaped the market’s undercurrent.
Japan’s Nikkei 225 once again stole the show in Asia, surging to fresh record highs and
cementing its leadership among global indices. A softer yen gave export-heavy
manufacturers a competitive tailwind, while stronger-than-expected GDP data for the
second quarter reinforced confidence in Japan’s economic momentum. Technology and
semiconductor stocks remained at the forefront, with speculation around SoftBank’s
digital payments arm, PayPay, adding a spark of speculative energy. For now, the Nikkei’s
rally has the look of a market not merely riding sentiment, but running on a broad base
of earnings strength and currency advantage.
Chart 5.1 Daily chart of SoftBank Group Corp. (TSE:9984): Price rockets to fresh
highs, fuelled by both technical and fundamental drivers. Technically, the stock broke into
parabolic territory with the RSI soaring to 89.69—its highest in years—while DMI shows
+DI strongly above –DI and ADX climbing, signalling exceptional trend strength.
Fundamentally, optimism around a potential U.S. listing of its PayPay unit and sustained
gains in the global tech/AI space provided a solid backdrop for aggressive buying.
Rapid upside moves like this may have trapped short sellers when stop-loss orders
cascade—which added to the buying surge. This rally in one of Japan’s heavyweight
tech names fed directly into the Nikkei 225’s latest record-setting run, given SoftBank’s
significant index weighting.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 3
The much-anticipated Trump–Putin talks in Alaska ended with more theatre than
tangible policy change. No ceasefire deal was struck, no sanctions rollbacks announced.
Markets, having braced for a headline shock, responded with muted shifts—oil eased
slightly, gold dipped, and European equities edged higher. In essence, the meeting served
as a geopolitical pause rather than a turning point, leaving investors to keep one eye on
diplomacy and another on data.
Beneath the headline moves, quieter forces are shaping the week’s undercurrent. On the
positive side, corporate earnings—particularly in tech and AI-linked sectors—continue
to hold up well, providing a stabilising influence in the U.S. and parts of Europe. The
recent softening in tariff tensions has also given global trade sentiment a gentle boost. On
the flip side, inflation remains stubborn in several key economies, keeping bond yields
elevated and tempering expectations for near-term rate cuts. Geopolitical uncertainty,
especially the unresolved Russia–Ukraine situation, continues to cast a shadow over
commodities and certain cyclical plays.
The message this week is that the market is balancing on a fine edge: resilient in pockets
where fundamentals and structural tailwinds align, yet cautious where policy, prices, or
politics threaten to shift the ground. In other words, strength exists—but it is selective,
and right now, it pays to be just as selective in chasing it.
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Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
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securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 4
3 Macro Decoder
Tracking the pulse beneath the charts: Commodities, Currencies & Crosscurrents
Gold Holds Ground, Awaits Catalyst for Breakout
Gold is treading water just above the $3,330 mark, caught between firm support at
$3,249 and overhead resistance at $3,447. Fundamentally, the metal’s resilience stems
from renewed Fed rate cut expectations, a softer dollar earlier in the week, and steady
physical demand from India ahead of the festival season. However, stronger U.S.
producer price data briefly revived the dollar and Treasury yields, tempering bullish
momentum. Technically, the directional movement index shows waning trend strength,
underscoring the need for a decisive breakout above $3,400–$3,447 to spark the next leg
higher, while a drop below $3,249 would risk shifting the bias toward consolidation or
correction.
Chart 5.2: Gold (XAUUSD) Daily – Prices Consolidate Between $3,249 Support and
$3,447 Resistance: Gold steadies above $3,330 as fundamental support from softer
dollar trends and seasonal demand collides with technical resistance. Momentum gauges
highlight fading trend strength, leaving a breakout above $3,447—or a slip under
$3,249—as the likely trigger for the next decisive move
In markets, patience pays twice—first by keeping you safe, and then by
letting you strike when the odds tilt your way.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 5
Crude Oil Under Pressure, $62 in Focus
Crude prices remain heavy, with WTI struggling to hold above the $62 support
zone. The market has been capped by a broader downtrend since mid-2022, with
repeated failures near $72 keeping sellers in control. Fundamentally, softer demand
signals from China and steady U.S. production have outweighed supply-side risks,
leaving oil vulnerable to further weakness.
Technically, the rejection from the mid-Bollinger band and an RSI reading near 44
suggest momentum is tilted bearish. A decisive break below $62 could open the path
toward $58–$56, while only a sustained recovery above $66–$67 would revive
prospects for a bounce toward $72.
For Indian markets, this softness in crude offers a quiet tailwind—helping cap
inflationary pressures, easing input costs for oil marketing companies (OMCs), and
reducing import bill stress on the rupee. Still, volatility in crude remains a risk factor,
especially if geopolitical headlines suddenly flare up.
Chart 5.3 WTI Crude Oil Weekly: Price tests the $62 support zone, with downside risks
toward $58–$56 if broken; resistance stands at $66–$67, and the broader downtrend
from 2022 remains intact.
The market has two moods: making you feel like a genius, or reminding you
you’re not—usually on the same day.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 6
4 Price Action Decoder
One breakout. One breakdown. One consolidation. Three stories decoded through
structure, volume, and momentum.
Before embarking on the details of this week, a brief recollection of the previous
one. Apple continues to extend its advance after last week’s breakout, while Morgan
Stanley—highlighted in our earlier issue—followed through with strength. OKE is still
holding just above its lower support zone, demanding close attention. Deere & Co. (DE)
has slipped out of its channel; until the stock reclaims the gap area and closes
convincingly above it, a bullish stance remains premature. NRG’s failed breakout attempt
has reversed sentiment, leaving the stock tilting bearish.
This was, in gist, what we discussed earlier. I would advise readers to always keep
an eye on observations made in prior issues, for breakouts and breakdowns often sow
the seeds of multi-week, if not multi-month, trends.
Microsoft: Neutral RSI, Bullish Bias Intact
Technical Deciphering
• Trend & Moving Averages: Price is trading well above the 50-day SMA (green) and
hugging the 20-day MA (red). This shows the broader trend is bullish, though
momentum has cooled in recent weeks.
• Price Action: After a sharp spike, the stock is consolidating around the $520 zone.
This sideways move suggests digestion of prior gains rather than a breakdown.
• RSI: Currently around 55, having slipped from overbought levels (70+). This is a
healthy reset — neither strongly bullish nor bearish, but leaning toward neutral
with upside bias.
• Support & Resistance: Strong support sits around $500 (50-SMA zone), while
resistance is at the recent highs near $540–545.
Overall View
The setup remains bullish in the medium-term trend, but near-term momentum is
neutral to slightly soft. If MSFT holds the $500 support zone, buyers are likely to regain
control. A break below $500, however, would shift bias to bearish.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 7
Chart 5.4: Microsoft consolidates near $520; $500 remains pivotal support for trend
continuation.
Decoding Charts: A Handbook of Technical Analysis
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600 +pages
375 full-colour charts from Indian & global markets
Trading strategies under the 10 Commandments of Trading
Includes original systems:
TAS Matrix – modified MACD for structured entries
AVC Zones – based on Anchored VWAP compressions
Not about scattered indicators—about structured thinking.
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Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 8
Cisco Systems (CSCO) On verge of breakdown?
Chart 5.5: Cisco Systems (CSCO) breaks below key moving averages with high volume,
turning the near-term trend bearish as price tests critical support around $65.
Trend & Price Action
• The stock has broken down sharply after a brief attempt to push higher.
• Price fell below both the 20-day (red) and 50-day (green) moving averages,
confirming short-term weakness.
• The gap-down candle with strong follow-through selling highlights bearish
momentum.
Momentum Indicators
• RSI (14) is at 40.61, tilting toward bearish territory but not yet oversold. This
leaves room for further downside.
• The relative volume (ReVol) spikes confirm strong participation in the selloff —
meaning this wasn’t a low-liquidity move, but active selling pressure.
Support & Resistance
• Immediate support rests near $65–66, which price is testing now. If this cracks,
the next support zone is around $62–63.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 9
• On the upside, resistance lies first at the 20-day MA (~$68.8) and then near $71–
72, the recent highs.
Overall View: Bearish bias in the near term. Heavy volume breakdown with RSI still
above oversold suggests further downside is possible unless the $65 support holds.
Tesla: Compression Patterns and Breakout Setup
Chart 5.6: TSLA – AVC Compression at Triangle Apex, poised for a decisive breakout
Pattern:
Price has been consolidating within a symmetrical triangle (blue trendlines), a classic
setup that precedes sharp directional moves.
Anchored VWAPs:
The AVWAPs drawn from key pivots (red, orange, blue) have compressed tightly into
one zone, forming what I call AVC Compression. Such clustering reflects a balance of
supply and demand — but when price breaks out, it often triggers a powerful directional
move.
DMI/ADX (bottom panel):
However, the ADX (black) remains subdued (~12), implying trend strength is still weak.
A surge in ADX alongside price breakout would validate momentum.
Takeaway
Tesla is at a decisive AVC Compression zone. The next breakout from this confluence of
AVWAPs and the triangle pattern could set the tone for a sustained trend. Watch for a
move above $350 (bullish trigger) or below $310 (bearish trigger) to confirm direction.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 10
5 Indicator Decoded: Spotting Unusual Activity with Relative Volume
(RVOL)
Relative Volume, often abbreviated as RVOL, is a straightforward yet powerful tool for
gauging how active a market is compared to its own normal behaviour. It measures the
ratio of current volume to the average volume over a chosen lookback period. An RVOL
of 1.0 means trading activity is right in line with its historical average, while readings
above 1.5 or 2.0 point to significantly higher-than-usual participation—often a sign that
something important is driving price action.
Unlike absolute volume readings, RVOL adapts to each instrument’s unique trading
profile, making it easier to compare activity spikes across different stocks, indices, or
commodities. Traders use it to confirm the validity of breakouts, identify stealth
accumulation or distribution, and quickly filter for instruments where “something is
happening” beneath the surface.
Common thresholds vary by trader and market, but an RVOL above 2.0 often signals that
a move has real conviction behind it—whether it is a rally fuelled by fresh buying or a
sharp drop driven by heavy selling. Conversely, very low RVOL can indicate a lack of
interest, where price moves are more likely to fade or drift aimlessly.
In my own scans, elevated RVOL ahead of or during a breakout frequently separates
genuine moves from false starts. For instance, a stock clearing resistance with RVOL near
3.0 is far more compelling than one doing so with RVOL barely above 1.0. That said,
volume alone does not tell the whole story—context matters. Combining RVOL with chart
patterns, moving averages, or key support/resistance zones adds the structure needed
to turn raw activity data into actionable signals.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 11
The table below gives a broad summary of interpretation of RVOL
Scenario RVOL Reading Price Behaviour Interpretation
Closes near highs,
Likely High (e.g., ≥ 1.5– Larger players buying at the
holds above or at
Accumulation 2.0) floor; support likely to hold
support
Closes near lows,
Possible Heavy selling pressure;
High breaks or hovers
Breakdown support may fail
below support
Wait for next session—
Uncertain / Needs Mixed candle (e.g.,
High direction depends on follow-
Confirmation doji) at support
through
Any candle type at Lack of conviction; support
Low Participation Low (e.g., < 1.0)
support tests less meaningful
RVOL registering Hints at accumulation → wait
General Rule high value at — for confirmation from price
supports action
Chart 5.7 Daily Chart of Apple where extremely high RVOL reading was observed.
The zone coincided with weekly 200 SMA (not shown in the chart)
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 12
6 One Chart in Focus: Decoded Over Time
Tracking Price, Momentum, and Structure Across Weeks
This section is designed to chronicle the evolving technical landscape of one frontline
stock over a multi-week period. By observing the same chart across next ten issues,
readers can decode how support-resistance levels, moving averages, and oscillators like
RSI behave over time – not in isolation. The goal is to understand progression, not just
snapshots. Each update will analyse fresh price action, shifting slopes of key averages,
and changes in momentum dynamics. Over time, this series aims to develop your eye for
trend maturity, setup formation, and failure clues – skills best built not from static charts
but from unfolding structure.
➢ Chart Selected for Decoding VISA (V)
Chart 5.8: Daily chart of Visa (V) – Just at the mid bad of Bollinger. The bounce was
from 200-day SMA which we expected previous week.
Price Action & Moving Averages
• Price is currently hovering around $344.47, just below the 50-day SMA (~350) and
200-day SMA (~335).
• The 200-day SMA (black) has been acting as a long-term rising support, keeping
the broader trend intact.
• Recent dip bounced exactly from that zone, suggesting institutional demand near
the 200-SMA.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 13
Bollinger Bands
• Bollinger Bands (20,2) show that price touched the lower band recently, triggering
a reversal attempt.
• Current move is testing the mid-band (20-day average), which is acting as
immediate resistance.
• A strong close above 350 could open upside toward the upper band near 360.
Oscillators
• DMI (Directional Movement Index):
o ADX (black) is modest (~28), signaling trend strength is still subdued.
o +DI (blue) has ticked up, while –DI (red) is easing off, hinting at a possible
bullish crossover if follow-through buying emerges.
• RSI (14): At ~49, neutral but recovering from oversold levels. Still below 50, so
confirmation needed.
Key Takeaways
• Bullish Case: Hold above the 200-SMA with follow-through above 350–355 →
opens the path toward 365–370.
• Bearish Risk: Failure to reclaim 350, followed by a breakdown below 335 (200-
SMA) → could drag the stock toward 320–315.
• Overall, Visa is at a make-or-break zone, with the 200-SMA acting as a key line in
the sand.
weekly chart read of Visa (V):
Price Action & Moving Averages
• Price closed at $344.47, rebounding modestly after recent pressure.
• The 50-week SMA (~326, green line) has acted as a long-term rising support since
mid-2022. Price once again bounced near it, showing strong structural support.
• The stock is still below the 20-week average (~353), which is acting as immediate
resistance.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 14
Chart 5.9 weekly chart of Visa stuck in a trading zone
Bollinger Bands (20,2)
• Price has been oscillating between the mid-band (~353) and lower band (~320).
• Current action shows compression near the middle zone, indicating a potential
buildup before expansion.
• Sustained close above 353 would imply momentum towards the upper band
(~373).
RSI (14-week)
• RSI stands at 51.41, recovering from neutral levels.
• Momentum is neither overbought nor oversold, giving scope for directional
expansion.
• If RSI holds above 50 for the next few weeks, it could confirm strengthening bullish
momentum.
Key Takeaways
• Bullish Case: Holding above the 50-week SMA (~326) and reclaiming the 353
resistances would resume long-term uptrend, targeting 365–373.
• Bearish Risk: Breakdown below 326 would weaken the long-term structure,
opening downside towards 300–290.
• Overall, Visa remains in a sideways-to-bullish consolidation, but the next 2–3
weekly closes will decide whether it resumes its uptrend or loses steam.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 15
7 Research Decoded: When Technical Indicators Meet Neural Networks
In this section, we spotlight a standout research paper, strategy, or market article that offers more
than just headlines. Whether it is a deep dive into technical setups, sentiment models, or AI-
enhanced systems, we break it down into what matters: key insights, real-world applications, and
what traders can do with it.
In this section, we spotlight a standout research paper, strategy, or market article
that offers more than just headlines. Whether it is a deep dive into technical setups,
sentiment models, or advanced system design, we break it down into what matters: key
insights, real-world applications, and what traders can do with it.
The paper “Technical Indicator Networks (TINs): An Interpretable Neural
Architecture Modernizing Classical Technical Analysis for Adaptive Algorithmic Trading”
was authored by Longfei Lu and published as a preprint on arXiv in mid-July 2025. You
can read it here: https://arxiv.org/abs/2507.20202. The work presents a neural
network architecture designed to replicate, extend, and modernise classic technical
indicators—moving averages, oscillators, and volatility bands—while retaining
interpretability.
The central idea is simple but powerful: many well-known indicators can be
represented as neural network layers with fixed weights. TINs build on this by treating
each indicator as a modular “layer” that can process traditional price and volume data
alongside other inputs such as sentiment scores or order book depth. This creates a
hybrid model that feels familiar to traders but can adapt dynamically to richer datasets.
The methodology is a bridge between the transparent logic of traditional TA and
the adaptability of modern machine learning. By mapping known indicators into neural
architectures, TINs aim to preserve the clarity of the original formulas while enabling
integration with more complex inputs. This approach could help systematic traders
design strategies that evolve without becoming opaque “black boxes.”
From my perspective, the interpretability claim is the most appealing part of this
work. Many machine learning applications in trading lose credibility because they hide
their inner workings; TINs, on the other hand, show exactly which indicator logic is in
play. This could make them easier to test, explain, and trust. However, as with any new
research, there are caveats. The paper is a preprint and has not yet undergone peer
review, and the concept’s real-world performance remains largely untested outside of
simulations. Implementation complexity could also limit accessibility—building and
tuning such systems is far beyond the reach of most discretionary traders.
For the retail reader, this paper is less about immediate adoption and more about
broadening perspective. It illustrates how researchers are re-engineering familiar TA
tools to work with new forms of data, a reminder that the charts we use today may evolve
in structure while still speaking the same technical “language.” Reading such research—
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 16
freely available on platforms like arXiv—can sharpen understanding of market
technology, encourage critical thinking about new tools, and keep one’s approach
adaptable in a trading world where yesterday’s methods are constantly being rewritten.
8 Pattern Decoded: WMB’s Potential Head & Shoulders in the Making
This section features one well-defined chart pattern from the current global market – flag, wedge,
triangle, or head & shoulders. The idea is not just to spot the pattern, but to decode its structure,
assess context, and explore what the pattern suggests for near-term price action.
Chart 5.10 — WMB testing neckline support near $57; a break would confirm
bearish Head & Shoulders.
Key Note: Let’s keep it straight — until the neckline breaks, this remains a potential Head
& Shoulders (H&S), not a confirmed one. A close below $56.5 on strong volume would
be the real confirmation trigger.
Currently, WMB is sketching what looks like a bearish Head & Shoulders pattern. The
left shoulder was formed in April near $60, the head at the June peak around $63 and the
right shoulder is emerging with the recent rally stalling back at $60. The neckline aligns
with the rising trendline support around $57, which has been repeatedly tested.
If the neckline gives way, the breakdown completes the bearish setup, with a measured
downside projection of roughly $50, based on the head-to-neckline height. Until then,
this remains just a developing structure rather than a done deal.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
Global Chart Classroom Issue 5 17
9 Your Voice Matters
Last week, I reminded readers that Global Chart Classroom is not meant to be a
one-way broadcast. It is not a lecture hall where you simply sit back and take notes—
it is a shared space where your observations, doubts, and “aha” moments matter just
as much as the charts I present.
I am happy to share that interest in Global Chart Classroom is steadily increasing.
Queries have been coming in not only from across India but also from readers abroad.
This week’s Indicator Decoded section—on Relative Volume—was sparked by a
question from a reader in Dubai who specialises in deep analysis of global markets. His
query led us into a focused discussion on how RVOL can hint at accumulation when it
spikes near well-tested supports, and why price action confirmation remains essential
before acting.
If you spot a setup that plays out exactly as we discussed, notice a divergence that
puzzles you, or disagree (politely, of course) with my reading—bring it to the table.
Each thought you share could spark the next insight for hundreds of other readers. This
is how a real classroom works: ideas are exchanged, tested, and refined together.
And as always, I must repeat what compliance demands: this newsletter steers
clear of Indian stocks, indices, and derivatives. Every example you see comes from the
global stage. But here is the good news—price action speaks the same language
everywhere. The triangle on Apple’s chart is no different in behaviour from one on
Asian Paints. Momentum shifts, reversals, and breakouts are powered by human
behaviour, and that behaviour does not carry a passport.
Disclaimer: This newsletter is for educational purposes only. It does not constitute investment advice
or a recommendation to buy or sell any financial instrument. The author may hold positions in some
securities discussed. Always do your own research or consult a registered advisor before making
trading decisions.
Copyright © 2025 Chart Decoder. All rights reserved.
