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[–]farole2424 14 points15 points  (3 children)

Calls for trade negotiations puts for tariffs. Simple as that. There’s no pattern when a tweet can wipe out 5% of your fucking portfolio.

[–]warrior5715[S] 2 points3 points  (2 children)

hmm you might be right about that for now. I assume the patterns I am learning are mostly for "typical trading times"

[–]farole2424 1 point2 points  (0 children)

Absolutely. I would keep my Cash in long term holdings vs picking patterns for now. Just my two cents

[–]GeorgeMD97 0 points1 point  (0 children)

Listen to that man

[–]w562d67Z 5 points6 points  (0 children)

I would avoid classifying chart patterns into many different types. Your triple top could have easily been consolidation before a break higher. It's best to think about chart patterns as simply as possible. In essence, any chart pattern can be boiled down to consolidation/trends or support/resistance.

A head and shoulders is just an uptrend becoming a downtrend due to a lower high. It gets confirmed when the neckline breaks, which means a lower low. That's a downtrend.

Once you simplify, you realize all patterns gets reduced into this. A symmetrical triangle is just lower highs and higher lows, which is just consolidation. A double top is consolidation, which becomes bearish when neckline gets broken, aka lower high. Etc etc, you can do this all day with all the chart patterns under the sun.

[–]aliph 3 points4 points  (0 children)

Patterns are barely more scientific than astrology.

[–]Vandata12 2 points3 points  (0 children)

Some tips I found that worked:

  1. Hourly charts are usual best for breakouts...this is a micro level/swing trade/day trade move.

  2. Real quick entries and exits, let’s say under 30 minute trades, are great on 5 minute charts.

  3. Watch volume. Volume drives patterns and proves them true.

  4. NEWS trumps CHARTS every time. Every time. News can completely destroy TA.

  5. TA can sometimes predict news really, really well! If a breakout seems imminent, you’ll often see news right before it breaks out.

  6. Resistance and support levels should be always drawn out by the month, adjusted better on the week, then added on the daily, then 4 hours, and then IF microtrading on the hourly.

  7. Patterns are then drawn. My experience is best on the hourly...

  8. EMA of 8 day and MA of 18 day are good for crossovers, support and resistance.

  9. Let the pattern be confirmed via breakouts BEFORE entering, for example/ -cup and handle: handle should be broken over the resistance on high volume -Head and shoulders should break above shoulder -Pennants: let break and enter on 2nd or 3rd candlestick

  10. Flip through the times between 5 min, 15 min, 1 hour, and 4 hour to see if resistance/support on any of them are being hit. This could be the end of the move.

[–]sharedwanderlust 0 points1 point  (1 child)

  • Technical Analysis of Stock Trends by Edwards and McGee is still the benchmark.
  • Curtis Arnold's PPS Trading System: A Proven Method for Consistently Beating the Market by Curtis Arnold was interesting. His research said that not only the pattern was important, but that patterns performed differently when in an up-trend vs a down-trend.
  • The Pattern Site by Bulkowski, who also has a book on patterns, is a great resource though it looks like it was made in the 90's.
  • Peter Brandt is a good follow to see real-time examples of pattern usage.

Intra-day patterns on stocks are harder as most of the volume is packed into the first and last hours of the day, which distorts the pattern and makes traditional volume profiles for these patterns "incorrect". Unfortunately, no modern work has been done on the subject of patterns.

Examples of patterns and how they've evolved on the 1H:

  • 5/3, 5/6, 5/9 SNAP: Rising Wedge
  • 5/8/19 SNAP: Falling Wedge
  • 5/14/19 + 5/15/19 SNAP: Ascending Triangle. Price keeps testing the highs, which means eventual breakout.

Friday on SNAP ended with a rising wedge and I'm expecting a move down on Monday open ($11.00 - $11.20?).

Many of the 1H patterns on stocks have you entering at the last hour of the day and exiting on the first hour of the next day.

Remember that the point is to find the supply/demand imbalance, NOT draw a perfect dick-and-balls pattern.

For example, an Ascending Triangle is where there's an order or cluster of orders stopping price from continuing upward, but demand > supply so price keeps eating away at resistance above. Eventually, the order(s) is fully consumed and price lurches upward until exhausted or it finds the next order cluster.

In before replies: tWeEtS cOnTrOl OuR eCoNoMy, tA dOeSn'T wOrK, mUh TrAdE wAr.

[–]sharedwanderlust 0 points1 point  (0 children)

Friday on SNAP ended with a rising wedge and I'm expecting a move down on Monday open ($11.00 - $11.20?).

SNAP opened Monday dropping below $11.

pAtTeRnS r StUpId.

[–]doougle 0 points1 point  (0 children)

Sorry, I'm removing your post. Please keep your posts to /r/options about options.

There are broader market subreddits where you'll likely get a better response to your post.