Use Chart Patterns
To Spot Investing
And Trading Opportunities
Chart patterns are the footprints of money. They will show you when is the best time to enter or exit a stock.
Patterns also show you continuation or reversals in a stock. Learning these patterns will help you to know whether you should continue to hold a stock or sell it.
These patterns are extremely powerful when combined with candlestick analysis.
I have divided these patterns into four categories. It is just like what you can find in the candlestick section. The appropriate candlestick patterns combined with the patterns in the articles below will work wonders for you.
Bullish Reversal Patterns
Bearish Reversal Patterns
Bullish Continuation Patterns
Bearish Continuation Patterns
How you can use these patterns
If you are long a stock you will want to see it continue to go up. Thus, you will want to see Bullish Continuation Patterns. You know that a stock will not go up forever. Therefore, you will want to take note of Bearish Reversal Patterns. It will help you to exit the stock before a major collapse.
If you like bottom fishing buying stocks which have gone down, you will want to look out for Bullish Reversal Patterns.
If you are a short seller, you will look for Bearish Reversal Patterns for an entry point. Once you have shorted the stock, you will want to see it continue to go down. Bearish Continuation Patterns are what you would want to see.
When you are short a stock, you should be on the lookout for Bullish Reversal Patterns. Once you see them, you might want to cover your shorts.
Return from Chart Patterns to Intermediate Page
Return to Home Page