lowtrade

[lowtrade]

How I rate chart patterns

For reliability at the big boards.

I like ascending triangles first. Retail pressure is hard to reverse once the lower trend line is established. Odds are the third top resistance touch will fall.

Next flags, Use FIBs overlay to determine odds for top resistance break and continuation.

Then falling wedges, but you want the price to walk out of a wedge, sideways, not pop out quickly. Pops tend to have throw back and re-enter the wedge. Sideways tend to climb like a single bottom bounce.

Next is a double bottom, (their nice for 2 entries; small at trend break and larger at main pattern resistance.

Then any channels, up/down/ or sideways, which have bounce off lower channel line for the third time. Until the third bounce, I don't feel the channel is really established.

And last a inverse heads & shoulders. These are mainly seen position trading a mid term 6 to 9 month chart. I small hold these and swing trade for target.