A picture paints a thousand words. So do stock market chart in the form of chart patterns. They tell us which direction the stock is about to enter.
There are two main type of patterns; reversal and continuation patterns.
I like trading these strategies as it takes quite a while to develop these patterns, so these tend to be a bit more reliable ( but can fail - mainly shorter time frame)
Don't laugh, these reversal patterns come in different shapes and sizes as well (the bigger the better/ more reliable). When you see shapes like the following developing, you know the stock is about to change in direction. These shapes /patterns are:
Cup and handle or saucer and handle
patterns are most reliable. In fact, most of my money were made using this chart pattern. I paid off my bills & more when I was off sick for more than one year using these patterns.
Click here to see two actual trade examples.
As the name suggested, price/ trend will continue in the same directions after a small pause or pull back. These patterns are:
- small rectangle
- small flags
Continuation patterns are fast and furious. You 'll miss them while you are wondering if they are the right patterns . They do not last long. See for yourself on the chart below.
Want To Know How To Make Money Trading Explosive Continuation Bull And Bear Flag Chart Pattern If You Have A few Minutes A day To Spare ?
I know a man who's good at spotting these patterns.
My previous stock option teacher, Guy Cohen also author of three stock options books available in most book shops, has now specialized into Flag Trading as well.
There are certain rules you have to stick to in order to profit from the explosive down or up move like the above bull flag and more importantly when to and not to enter and exit the trade.
I'll let the expert, Guy tell you how this can be done in a low risk way. Regardless whether you are experienced trader or a beginner to stock trading, Guy Cohen's flag-trader programm will guide you through to how to identify these trading opportunities through a set of Cds and online trading system that could make you money in days, weeks or months if you follow his rules as explained in the cds/ videos.
Click here to find out more where Guy Cohen explains the Ovi advantage/ flag chart patterns.
How To Find Chart Patterns- Ramp Pattern Recognition Scanner
If you prefer to trade these patterns yourself, you can use this software that can scan most of the patterns mentioned here for you. This software can also scan free data from yahoo or your existing charting software data.
They also offer a fre trial, so you may give this a try if you are interested to trade these your self.
Click here for your
Ramp Scanner Software
Cup And Handle|
Head And Shoulder|
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