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Yesterday you learned how to chart
Today you will learn about a trader's bread and butter
Chart patterns
Let me show you in
"Chart Patterns Made Simple"
- A THREAD -
Today you will learn about a trader's bread and butter
Chart patterns
Let me show you in
"Chart Patterns Made Simple"
- A THREAD -
1.
Chart patterns are found as a result of consolidation
Consolidation is when a stock is neither breaking out or breaking down
It is almost just moving sideways on the chart
Chart patterns are found as a result of consolidation
Consolidation is when a stock is neither breaking out or breaking down
It is almost just moving sideways on the chart
2.
Consolidation allows us to find out support & resistance levels
- Support is the area where the stock is likely to stop going lower
- Resistance is the area where the stock is likely to stop going higher
We want to buy when the stock breaks above resistance...
Consolidation allows us to find out support & resistance levels
- Support is the area where the stock is likely to stop going lower
- Resistance is the area where the stock is likely to stop going higher
We want to buy when the stock breaks above resistance...
3.
Chart patterns come in many forms
We've got the:
- Bull flag
- Cup w/ handle
- Horizontal channel
- Ascending triangle
- Symmetrical triangle
- & more!
Let's look for a few of these..
Chart patterns come in many forms
We've got the:
- Bull flag
- Cup w/ handle
- Horizontal channel
- Ascending triangle
- Symmetrical triangle
- & more!
Let's look for a few of these..
4.
*Note*
You want to buy all of these patterns as they break above resistance
There are times when we buy in other locations
But to keep it simple, look to buy above the resistance level
*Note*
You want to buy all of these patterns as they break above resistance
There are times when we buy in other locations
But to keep it simple, look to buy above the resistance level
5.
- The Bull Flag -
This pattern is known as a "continuation" pattern
Meaning it occurs after a move higher
The stock needs a breather before the next move higher
This is probably the easiest chart to buy (& one of my favorites)...
- The Bull Flag -
This pattern is known as a "continuation" pattern
Meaning it occurs after a move higher
The stock needs a breather before the next move higher
This is probably the easiest chart to buy (& one of my favorites)...
6.
- Cup w/ Handle -
Another favorite!
This pattern takes months to form (anything less won't be as powerful)
The stock will form the cup ( U-shape) over 2-3 months
Then the stock will drift lower while creating the handle
We're given multiple opportunities to buy...
- Cup w/ Handle -
Another favorite!
This pattern takes months to form (anything less won't be as powerful)
The stock will form the cup ( U-shape) over 2-3 months
Then the stock will drift lower while creating the handle
We're given multiple opportunities to buy...
7.
You can buy when the stock breaks above handle's resistance
And then buy more when it breaks the key resistance level
This pattern is powerful because of the time it needs to form
You can buy when the stock breaks above handle's resistance
And then buy more when it breaks the key resistance level
This pattern is powerful because of the time it needs to form
8.
- Horizontal Channel -
This one is a simple pattern
Both support & resistance are horizontal so we should know exactly where to buy...
- Horizontal Channel -
This one is a simple pattern
Both support & resistance are horizontal so we should know exactly where to buy...
9.
- Ascending Triangle -
Another favorite!
This is a tight risk pattern
Meaning we can risk less and buy more shares
It is characterized by a horizontal resistance line & ascending support line..
- Ascending Triangle -
Another favorite!
This is a tight risk pattern
Meaning we can risk less and buy more shares
It is characterized by a horizontal resistance line & ascending support line..
10.
- Symmetrical Triangle -
This is a fun one to trade
It's similar to the ascending triangle except the resistance line is descending
You'll quickly know if you're right or wrong when trading this pattern
In a bull market it usually rises
In a bear market is usually falls
- Symmetrical Triangle -
This is a fun one to trade
It's similar to the ascending triangle except the resistance line is descending
You'll quickly know if you're right or wrong when trading this pattern
In a bull market it usually rises
In a bear market is usually falls
11.
These 5 patterns are my bread and butter
Most of trading success has come from them
If you're not sure on how to use them then keep reading...
These 5 patterns are my bread and butter
Most of trading success has come from them
If you're not sure on how to use them then keep reading...
12.
The Big Picture goes over the entire charting/chart pattern process for you
Members are already making $100's weekly from the names I give
The best part?
All they have to do is buy and sell where I tell them
How easy is that? https://gum.co/elIOM
The Big Picture goes over the entire charting/chart pattern process for you
Members are already making $100's weekly from the names I give
The best part?
All they have to do is buy and sell where I tell them
How easy is that? https://gum.co/elIOM
