I have been trading chart patterns for the last few years and after years of unhappy trading moments I started to get some clarity.
I got my clarity by clearing off my charts and using either nothing but price and volume or a couple simple moving averages. I then watched patterns emerge. For the most part I use only 4 master patterns. Those patterns are Reversals, Breakouts, Continuations, New Highs.
By isolating on those 4 master patterns (which I’ll cover fully in another blog post) I have improved tremendously as a trader. And I’m learning more each day.
To learn more about patterns and to find out which ones you like best, if you have the time, I suggest looking at 5 minute charts.
Now, I don’t suggest trading them because the lower time frames are VERY difficult to trade, but because all charts at fractal, meaning they look the same on all time frames, by watching 5 minute charts you can watch patterns develop over and over in real time.
Take today’s market for instance. Looking at the 5 minute chart I see three patterns right off the bat:
How awesome is that? And all within a few hours!
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where do you find such good stocks like these?