You now have a plethora of weaponry to use when battling the market. This course will introduce you to a new weapon: CHART PATTERNS!
Consider chart patterns to be a land mine detector; once you’ve finished this lesson, you’ll be able to notice “explosions” on the charts before they happen, potentially saving you a lot of money. This lesson will teach you about classic chart patterns and formations.
When correctly identified, it frequently results in an explosive breakout, so be on the lookout!
Remember, our goal is to identify large moves before they occur so that we may profit from them.
Chart patterns can tremendously assist us in identifying instances when the price is about to break out in a specific direction.
They can also suggest whether the price will continue in its current path or reverse, therefore we’ll be developing some clever trading ideas for these chart patterns as well.
Chart patterns, in a nutshell, help you answer three questions:
- 1. How can I identify possible entry opportunities in a rising (or sliding) trend?
- 2. How might chart patterns provide possible entry signals?
3. How do I determine when to take profit (if the chart pattern worked) or cut my losses (if the chart pattern failed)?
Don’t worry, we’ll provide you with a handy little cheat sheet to assist you in remembering all of these fascinating patterns and strategies!
Here’s a list of the chart patterns we’ll go over:
- Double Top and Double Bottom
- Head and Shoulders and Inverse Head and Shoulders
- Rising and Falling Wedges
- Bullish and Bearish Rectangles
- Bearish and Bullish Pennants
- Triangles (Symmetrical, Ascending, and Descending)
Next Lesson: How to Trade Double Tops and Double Bottoms