5 chart patterns you need to know

8/19/2019 5 Chart Patterns You Need to Know

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5 Chart Patterns You Need To Know

1) INTRODUCTION

2) SYMETRICA TRIAN!E

") ASCENDIN!#DESCENDIN! TRIAN!E

$) %EAD & S%OUDERS

5) DOU'E#TRIPE ( 'OTTOM#TOP

) MINIMI*IN! RISK

+) MA,IMI*IN! PRO-IT

.)CONCUSION

1) INTRODUCTION

So /ou0re a e3e4er

You believe there are profits to be made in stocks. You believe you don’t have to pay a high-profile

Wall Street banker to make money. You believe the average Joe can earn a healthy fortune using

the right system. And you are dead-set on figuring that system out.We agree with you. We believe

that with the right tools, anyone can make consistent money in stocks.

And we are going to give you those tools.

A S367e Too83t 9or Re3ae Returns

n this simple-to-follow! eight-page guide! ChartAdvisor introduces you to five of the most powerful,profitable patterns in stocks.

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"hese stock patterns pave the way 10%, 15%, even 20% gains for each winning trade. "rue! not

the #$$$% some people are touting. &ut it’s darn good money! made using an established strategy!

and attainable at relatively low risk. t’s realistic money. And you don’t have to trust your hard-earned

cash to some broker’s favorite fad.

n the ne't few pages! you’ll learn all the skills you need to recogni(e proven money-making stock

patterns! and you’ll get to see these patterns in action.

"I've used a variety of ... systems, and lost 25% of my portfolio over a 2-3 year period craily tradin!hundreds of stocs. #hen I $e!an usin! ChartAdvisor and sticin! to the rules it made all thedifference. he stress of &atchin! stocs is !one, I can do my o$ &ithout constantly &orryin!, andI've made a 2(% return on my portfolio ust in the last three months on ust a fe& trades)"

* +. ie$ert, Canada

We’ll also introduce you to our ChartAdvisor system ) Three imple teps to tock !rofits.

Whether you decide to continue with ChartAdvisor or not! after reading this guide! you’ll *

"iscover #ow To$

+. dentify profitable stock patterns

#. ,inimi(e your risk

. ,a'imi(e your return in up and down markets

Ma8e 6one/ on the sto:8 6ar8et

You’ll learn how to make big money on stocks using a technical analysis toolkit that has been

wielded successfully for hundreds of years. "hat’s no e'aggeration.

"hat makes these patterns some of the most timetested strategies in finance. You can feel secure

that you are trusting your investments to a highly refined system ) not a new cra(e or an analyst’s

hunch.

"here are hundreds of patterns in stock charts that traders can look for! but atChartAdvisor ! we focusonly on the most trusted.

# SYMETRICA TRIAN!E

!rofitable !attern &umber 'ne


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The S/66etr3:a Tr3an;e< A Re3ae =or8horse

You’ll recogni(e the symmetrical triangle pattern when you see a stock’s price vacillating up and

down and converging towards a single point. ts back and forth oscillations will become smaller and

smaller until the stock reaches a critical price! breaks out of the pattern! and moves drastically up or

down.

"he symmetrical triangle pattern is formed when investors are unsure of a stock’s value. /nce the

pattern is broken! investors 0ump on the bandwagon! shooting the stock price north or south.

ymmetrical Triangle !attern

"o form your symmetrical triangle pattern! draw two converging

trendlines that bound the high and low prices. Your trendlines should

form 1you guessed it a symmetrical triangle! lying on its side.

%ow to Pro93t 9ro6 S/66etr3:a Tr3an;es

Symmetrical triangles are very reliable. You can profit from upwards or downwards breakouts. You’ll

learn more about how to earn from downtrends when we talk aboutma'imi(ing profits.

f you see a symmetrical triangle forming! watch it closely. "he sooner you catch the breakout! the

more money you stand to make.

(atch )or$

• Sideways movement! a period of rest! before the breakout.

• 2rice of the asset traveling between two converging trendlines.

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• &reakout 3 of the way to the ape'.

et *our Target !rice$

As with all patterns! knowing when to get out is as important as knowing when to get in. Your targetprice is the safest time to sell! even if it looks like the trend may be continuing.

)or symmetrical triangles, sell your stock at a target price of$

• 4ntry price plus the pattern’s height for an upward breakout.

• 4ntry price minus the pattern’s height for a downward breakout.

ChartAd43sor S/66etr3:a Tr3an;es 3n A:t3on

5hartAdvisor has a long history of identifying symmetrical triangle patterns. /ver the last two and

one-half years! 5hartAdvisor has brought to its readers over 20symmetrical triangle patterns. "hat’s

an average of one every month and a half.

/ur readers earned an ama(ing +0% profit on our 6ortel 6etworks nc 16" pick. "hose who

followed our call on 7ochester ,edical 5orp 17/5, in September of #$$8 earned +9% in days.

And in /ctober of #$$8! our members earn ++% in +: days when 5hartAdvisor noticed 2an

American Silver 5orp 12AAS.

http://www.investopedia.com/markets/stocks/NThttp://www.investopedia.com/markets/stocks/ROCMhttp://www.investopedia.com/markets/stocks/PAAShttp://www.investopedia.com/markets/stocks/NThttp://www.investopedia.com/markets/stocks/ROCMhttp://www.investopedia.com/markets/stocks/PAAS


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/ur members earned ++% in +: days on the 2AAS symmetrical triangle pattern.

f you’re not sure you can recogni(e a symmetrical triangle on your own! be sure to

visit 5hartAdvisor.com daily for out 5harts of the ;ay.

Learn #ow to !rofit from our &et et of !rofitable !atterns$

The -scending and "escending Triangles

") ASCENDIN!#DESCENDIN! TRIAN!E

!attern &umber Two

As:end3n; and Des:end3n; Tr3an;es< The Trad3t3ona 'u and

'earWhen you notice a stock has a series of increasing troughs and the price is unable to break through

a price barrier! chances are you are witnessing the birth of anascending triangle pattern.

Ascending Triangle Pattern

Confirm your ascending triangle pattern by drawing a horizontal line

tracing the upper price barrier and a diagonal line tracing the series ofascending troughs.

"he descending triangle is the bearish counterpart to the ascending triangle.

Descending Triangle Pattern

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Confirm your descending triangle by drawing a horizontal line tracing thelower price barrier and a diagonal line tracing the series of descendingtroughs.

"he ascending and descending patterns indicate a stock is increasing or decreasing in demand. "he

stock meets a level of support or resistance 1the hori(ontal trendline several times before breaking

out and continuing in the direction of the developing up or down pattern.

%ow to Pro93t 9ro6 As:end3n; and Des:end3n; Tr3an;es

Ascending and descending triangles are shortterm investor favorites! because the trends allow

short-term traders to earn from the same sharp price increase that long-term investors have been

waiting for. 7ather than holding on to a stock for months or years before you finally see a big payday!

you can buy and hold for only a period of days and reap in the same monster returns as the long-

time stock owners.

As with many of our favorite patterns! when you learn to identify ascending and descending

triangles! you can profit from upwards or downwards breakouts. "hat way! you’ll earn a healthy profit

regardless of where the market is going.

(atch )or$

• An ascending or descending pattern forming over three to four weeks.



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Another of our winning picks in #$$9! ;ril-uip nc 1;7 0umped +#% in 0ust B days. /n &oyd

Caming 1&Y;! investors following our pick earned a whopping #:% in 9 days.

'ur readers earned 2/% in 5 days on the *" ascending triangle pattern.

As a ChartAdvisor regular you would have reaped incredible profits on the B$ ascending and

descending triangle picks we’ve made since our program’s beginning.

We features an average of two of these cash cows per month! making them one of the most

prevalent and predictable patterns in your toolbo'.

earn #ow to !rofit from our &et !rofitable !attern$

The #ead and houlders

$)%EAD & S%OUDERS

!rofitable !attern &umber Three

%ead and Shouders< A ChartAd43sor Sta7e

"he head and shoulders pattern is a prevailing pattern among short sellers! investors who profit from

downtrends. After three peaks! the stock plummets! offering atetbook, highreturn opportunity to

traders who catch the trend early.

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Head and Shoulders Pattern

Head and shoulder patterns are characterized by a large peak bordered oneither side by two smaller peaks. Draw one trendline, called the neckline,connecting the bottom of the two troughs.

"he first trough is a signal that buying demand is starting to weaken. nvestors who believe the stock

is undervalued respond with a buying fren(y! followed by a flood of selling when traders fear the

stock has run too high. "his decline is followed by another buying streak which fi((les out early.


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This head and shoulders pattern on PAWC shot up an astonishing 27% in just 33 das!

"earn Ho# to Pro$it $ro our &e't Set o$ Pro$ita(le Patterns: Dou(le and Triple )ottos

and Tops *

53 DOU'E#TRIPE ( 'OTTOM#TOP

!rofitable !atterns &umber )our and )ive

Tr37e and Doue 'otto6s and To7s< Re4ersas u7on re4ersas

When you see a W or , pattern forming! you may have 0ust discovered a moneymaking double

bottom or double top pattern. "hese patterns are common reversal patterns used to suggest the

current stock trend may be likely to shift.

&ut don’t panic if your double bottom or double top patterns do not develop as you had originally

thought. You haven’t lost your chance for cash. f your W or , pattern reverses for a fourth time! you

could now be working with the profitable triple bottom or triple top.

Doue 'otto6 Pattern

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Dou(le )otto Pattern

& small peak is surrounded by two e)ual troughs.

!urchase (hen$

• "he price e'ceeds the middle-peak price.

(atch )or$

• A price increase of +$% to #$% from the first trough to the middle peak.

• "wo eDual lows! not to differ by more than % or 8%.



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hort ell (hen$

• "he price drops below the middle-trough price.

(atch )or$

• A price decrease of +$% to #$% from the first peak to the middle trough.

• "wo eDual highs! not to differ by more than % or 8%.



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• ascending and descending triangles

• head and shoulders

•

double top and double bottom

• triple top and triple bottom

You’re halfway through your ChartAdvisor toolbo'. &ut you still need a couple more nuts and bolts to

ensure high-dollar profits in the market. &efore you’re ready to invest! you’ll want to learn how best

to cut your losses and ma'imi(e your returns.

)MINIMI*IN! RISK

earn #ow to 4inimie *our tock 4arket osses

%ow to M3n363>e Your R3s8

6o investment advisor likes to admit it! but no stock picking system is perfect. Sometimes! the stocks

we think will e'plode! don’t. Sometimes! the stocks we feature lose money.

"here may not be a foolproof system to predicting the stock market! but we do have afoolproof

system for managing risk. ChartAdvisor follows one of the safest risk reduction systems available.

Esing these three simple steps! you can reduce the risk in your stock picking plan=

Three =a/s to Ta8e R3s8 Out o9 the Sto:8 Mar8et

+. creen *our !icks.

"his might seem obvious! but patterns that look like they are developing into predictable

trends do not always follow through. After combing over thousands of stock charts a

day! ChartAdvisor will often not fetures a single stock.

#. 6et 7n. 6et 'ut.

ChartAdvisor preaches setting realistic target e'it prices for all stocks. We lock in high

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returns while the stock is high! and we get out before the market has a chance to change its

mind.

. et Tight top osses.

"his step is absolutely critical to minimi(ing your risk in the stock market. f a sure-fire winner

turns out to be a fi((led-out dud! your system needs to have a built-in! abandon-ship trigger.

"hat is! you need to know when to cut your losses and move on to brighter prospects.

ChartAdvisor sets its stoploss trigger around %. So if a trade starts to go sour! you will almost

never lose more than % of your investment.

I am !lad I too a second loo at ChartAdvisor . I eyed in your data from the 2nd of e$ /0 into aspread sheet &ith 2/% of capital allocated to each sym$ol and came up &ith the 31% annualied

return &hich is $etter than a poe-in-the-eye-&ith-a-sharp-stic, considerin! "the maret" has $een a

side&ays affair since the startin! date.

#hat I must mention is ho& inspired and relaed I am after an in-depth study of your real tradin!

account main! that amount of return... I can more fully appreciate the much-lectured "cut your

losses short no&", seein! ust ho& early it pays to !et out &hen the trade !oes a!ainst you, rather

than the "!ive-it-room" systems I have tried."

-. Cameron, 4e& ealand

earn the )inal 8ey To the 9hart-dvisor ystem$

4aimiing *our !rofit in :p or "own 4arkets

+)MA,IMI*IN! PRO-IT%ow to Ma?363>e Your Return In Up or Down Markets

7emember at the beginning of this report when we said we’d show you the Three imple teps to

tock !rofits;

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We already learned about step one= picking profitable stock patterns. We’ve also covered step two=

minimi(ing your risk. 6ow we’ve come to the final step that makes the ChartAdvior system so

uniDue= how to profit from stocks! even when the stock goes down.

t’s a common misconception that traders can only make money when the price of a stock rises.

Investors can mae money anytime they can predict a stoc6s future movement 7 up or do&n.

It0s t36e to earn aout short se3n;

Short selling is the secret to making cash in a down market. Fere’s how it works=

+. 7dentify a stock pattern that suggests a stock is headed down.

8ample9 he Cleveland Cliffs descendin! trian!le pattern in April of 2//5 &as perfect for

short sellin!.

#. orrow shares of the soontodecline stock from your brokerage.

8ample9 :et6s say, ri!ht $efore the Cleveland Cliffs pattern ;a$ove< $reas out and moves

do&n&ards, you $orro& =// shares of the stoc.

. 7mmediately sell these borrowed shares.

8ample9 >ou immediately sell these $orro&ed shares of Cleveland Cliffs at the price ust

$elo& the support line9 ?@/ per share, =// shares ?@,///. >ou are no& sittin! on ?@,///.

+ut, of course, you still o&e the $roera!e =// shares, &hich you don6t currently have

anymore.

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8. (ait for the stock to drop to your target price.

8ample9 >ou &ait for the stoc to reach the tar!et price, &hich in this eample, is ?(3 per

share.

9. uy the shares at the target price.

8ample9 >ou use the ?@,/// you made earlier to purchase =// shares at ?(3 per share.

hat costs you ?(,3// dollars and leaves you &ith an etra ?@// in your account.

B. *ou return the shares to your brokerage.

8ample9 Beturn the =// shares of Cleveland Cliffs to your $roera!e.

G. ou earned ?@//, a =/% profit on ?@,///. And even $etter, you made ?@// &hen

the price of C: declined and all other investors &ere losin! money)

earn The Top 5 >easons To Try 9hart-dvisor

.) CONCUSION

T36e to !et Started@

You’re ready. You know everything you need to make big money on stocks! and you can put all of

these tools to work now. Start flipping through stock charts! and see if you can identify the right

patterns. "hen use our easy-to-follow principles of risk management and short selling to ensure you

are sDuee(ing the most out of every one of your investment dollars.

/f course! doing this yourself is a lot of work. And you could save do(ens of hours a week if you

follow the daily updates at 5hart Advisor for

5 chart patterns you need to know

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