Chartpatterns represent market supply and demand in a pictorial format. Instead of pouring over tables of data and making notes of new highs, lows, and volume size at key turning points (although this would indeed work*); we can quickly look at a chart and see all this in one instance.
The old adage of a picture is worth a thousand words is found to be demonstrably true when it comes to the equity, currency, and futures markets (or any market for that matter). Chart patterns represent the psychological underpinnings of supply and demand of the tradable issue.
We can see institutional buying and selling and get ahead of the competition, finding the biggest winning trades in the market! We can graph charts in multiple time frames: Monthly and Weekly for long term trend analysis, and Daily, 4 Hour, 1 Hour, 15 Minute for determining the shorter trend. Our preference is
to use the Monthly and Weekly to find the best trades and then use the Daily and 4 Hour to find the optimum entry and exit points.
Continuation Patterns: Cup and handles, Cup with Saucers, Base on Base Patterns, Bull Flags, Bear Flag and Pennants, Flat Bases, Symmetrical Triangles, Ascending Triangles, Descending Triangles, Rising Channels, Rising Wedges, Falling Wedges, Diamond Patterns, Double Bottom ‘W’ Patterns…
Reversal Patterns: Head and Shoulders, Inverse Head and Shoulders, Double Tops, Double Bottoms, Rising Channels, Triple Bottoms, Triple Tops…
We provide in-depth chart analysis for what we believe to be the best stocks in the market right now. Stocks, the general market, commodities, and currencies.
*in fact this was Nicholas Darvas’ trading methodology. He would, using newspapers, note when a stock from a leading industry group was making a new high and then buy that stock. He would sell when the stock failed to make new highs and turned lower, making a fresh lower low. Darvas found that he didn’t need to know the ‘why’ or the reason the stock had turned, only that it had.