Traditional Stock Chart Patterns and Trend Following Stocks
The internet is flooded with free stock charts. Many of the charts and the training that goes with them talk about traditional stock chart patterns. These patterns reference terms like Flag, Pennant, head and shoulders, triangles, wedges and so forth. Often you are told what these stock chart patterns look like, but very little systems to trade them. While most stock chart pattern systems are easy to learn you are still forced to find the patterns and determine if there is a good trade set up for you or not.
Almost every “stock chart pattern” that is referenced, is a correcting pattern, nothing more. They are called my different names, but all they are are pauses in a trending move, and are preparing to reverse or continue the trend. This means that these stocks are retracing a trend or reversing. Others refer to this as basing, consolidating, counter trending, retracing, and correcting. the consolidation period of a stock is a critical time for proper trade set ups, but you must wait for confirmation of the continuation of the trend before making a trade.
This chart of Pilgrims Pride shows a great example of triangle patterns. The Market Trend Signal™ trend following trading system is designed to give BUY signals at the confirmation point, or earlier, on all traditional chart formations.
Market Trend Signal™ trend following stocks trading system. Click the link below for your free trial.
Jesse Webb
Market Trend Signal™
Trend Following – Stock Ratings – Market Timing
