"Chart Pattern" Posts
A Library Of Trading Edges And Statistical Biases
As promised to my premium members I would publish my work here before they go into collections of ebooks. I have a slight change of plan now which delays the ebook publishing part and focus more on completing the library here first. In another words, I am accelerating the speed of posting various specific trading […]
Spike And Ledge
Part of Art of Chart Reading Summary Spike and ledge is a terminal pattern that happens more often in indices and post news shock environment. The concept is simple and easy to follow. It is one of the best short term trading patterns in terms of risk reward payoff. Traders have given this pattern many […]
False Breakout – The Most Misunderstood Pattern
Part of Art of Chart Reading Traders often focus on how accurate certain chart patterns are and how much money you can make from using the patterns. The more experienced ones would add to their consideration of the risk reward profile of the patterns they choose to use. However, many traders never plan to react […]
Price Moves Like We Breathe
Part of Art of Chart Reading The basic types of price movements are just contraction and expansion. It is similar to how we breathe. It cannot be simpler.
2013 Recurring Nightmare For The Bears
2012 Year End Deja vu
2012 started the year with a 20+ points gap to the upside from 2011 close. And that gap was never filled. It is the first time in S&P history that a gap from the year before not filled in the year right after. And now a year later, right before the 1st week of January, […]
Essence of Trading: Price Goes Up And Down
Before you spend time even thinking of the more complex price patterns or technical setups, have you even paying any attention to the most basic foundation of the price charts, like the price bars themselves? It does not matter you use candlesticks or open-high-low-close bars (OHLC bars). The important thing is whether you know anything […]
Channels
Part of Art of Chart Reading Channels is an interesting structural behaviour with non-random price movements. With purely random generated data series, channels rarely show up. It is one of the most important evidence that real market data are not random. Channels essentially are extended usage of the trend lines. The way that price is […]
Pockets
Part of Art of Chart Reading Pockets have a very special position within the core set of chart patterns. Unlike any other chart patterns, pockets are not defined by what is being there but what is missing. Pockets are very powerful price magnets often ignored by chart readers due to their subtle existence. Pockets can […]
SPY Locked In Stair Step Up Pattern Since Beginning of 2013
The blue boxes below is defined by the range of January 2013. Nothing magical. STOPD at work.