Stock Trading

Chart Patterns Like This Will Make You Money All Day Long

I never get tired looking at winning charts and winning chart patterns.  Why?  Because nothing succeeds like success.  In fact, I study them all weekend long.  And yes, we are talking ALLLLLLL WEEKEND LONG.

With that said, here is an awesome chart worth studying: CIE.

This chart has everything I want to see in a trade.

1.  Breakout On Volume

Here you can see that on the breakout day above the 50 day moving average, volume was greater than any other day in the weeks leading up to the move.

2.  Continuation/Consolidation

Once price breaks out, you want consolidation periods between those runs so price doesn’t get over extended.

After those consolidations, you want the last thing I look for:

3.  New Highs

You want price going up.  And you want to SEE it going up.

Looking at a chart like this, and these awesome chart patterns, it’s easy to THINK it’s easy to trade like this.  Not so.  It’s very difficult to let your winners run.  That’s because the impulse to take profits is huge.

I’m always working on methods and tools that help remind me when I’m in a possible HUGE trade.

Looking at charts like this is one of those ways.

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