Understanding Chart Patterns
Stock charts are simply a graphical illustration of historical price
movement. The Stock Bandit uses technical analysis to find the
chart patterns
that stock charts tend to form, because within chart patterns are evidence of market
psychology. Human emotions have tremendous power in the stock market.
There is greed of wanting more, fear of missing out, fear of losing more, and
general uncertainty. These emotions result in an imbalance of supply and
demand and price fluctuations for traders to capture. Technical analysis
of stock charts uncovers various chart patterns in price movements, which reflect
human emotions. Many agree that we are creatures of habit. As human
behavior tends to repeat itself, so do these chart patterns which help to forecast
price movements.
The goal is to eliminate emotions from trading, but the astute trader
sees profit potential in exploiting the emotional mistakes of others in the
market. This is why we rely so heavily on technical
analysis of chart patterns.
We want you to be a student of the stock market, as well as chart patterns.
To learn and understand chart patterns is to learn about the psychology behind
price movements. Familiarity with chart patterns will not only help you
follow along with The Bandit Broadcast, but it will help you learn to uncover your own
big winners in the market using technical analysis. Below are links to most all of the chart
patterns found in The Bandit Broadcast
stock pick newsletter. Screening for Chart Patterns
The Stock Bandit recommends getting a charting program which enables you to
build watch lists, draw
trend lines, and add indicators with ease. Only
with such a program will a trader be able to monitor his trading ideas and learn
to effectively anticipate market moves by applying technical analysis to find chart patterns.
We use TCNet from Worden Brothers, Inc. each night and on an intraday basis
for charting purposes, and you can use the same product. Two levels of
service are offered, delayed and real-time. Click below for details.
Get free TeleChart charting software!
Learn all about
Chart Patterns and
finding chart patterns here in our trading education area!
The Stock Bandit, Inc. - 17460 IH-35 N. #160, PMB 240 - Schertz, TX 78154
Copyright 2004 -2008 The Stock Bandit, Inc. All Rights Reserved
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