Tuesday, August 30th, 2016

Day Trading Chart Patterns

One of my preferred day trading chart patterns to swing trade short term is the Symmetrical Triangle. The Symmetrical Triangle chart pattern is kind of weird for the reason that it seems as if energy increases as the stock travels closer into the head of the pattern then it abruptly does a breakout. The anticipated target of the breakout move is equivalent to the distance the stock traveled going into the pattern. Nevertheless you ought to use the Symmetrical Triangle formation in correlation with other technical indicators like the MACD. The MACD needs to have the signal and the divergence lines both trending higher. For calculating when to sell after the breakout move, I choose to use the Slow Stochastic. Something that I will do is fiddle with my Slow Stochastic settings for the stock or market I am stock trading. You can check out the previous video I did about the dynamic tool I use to accomplish this in a couple of seconds. After you have the settings for your stock trading style and that have generated at least 3 good buy and sell signals, you will have your exit mark. Currently in the Market Vectors Steel ETF (SLX), the optimized Slow Stochastic settings are 4, 4, 2. The objective is to purchase as soon as the stock does a breakout, and exit out of the market on the Slow Stochastic cross of the %K and %D lines. I dig this chart as well for a possible re-entry. We have done a textbook Fibonacci retracement of 38.2% after the Symmetrical Triangle breakout. The Slow


4 Responses to “Day Trading Chart Patterns”
  1. lifehousestock says:

    nice video. symmetrical triangle is the best way to trade. don’t trade indicator since they’re lagging.

  2. JohnnyGastone says:

    What online broker do you use?

  3. StockTradingMaster says:

    @infosystems08 I almost never use the same slow stochastic settings. I think traders blow it doing that. I dynamically adjust the stochastic in real time. See my previous video on the slow stochastic for how to do this.

  4. infosystems08 says:

    What numeric variables do you use for the slow and other stochastic line that you are illustrating in this video? The video is interesting to watch.

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