June 27, 2019

On reading chart patterns... nice thread by @SubhadipNandy

I see a lot of traders following classical chart patterns . Being a pattern follower myself for some years , here is my advice to them as I feel some pointers will improve their accuracy . Again , this is not the only correct way but what I have learnt from my experiences

1. Volume confirmation is a must. Without the volume rules being fulfilled , there is no importance to the pattern

2. Understand where the pattern is taking place within the major price structure of the index/stock. An inverse head and shoulders bottom reversal occurs at market bottoms , not at market tops

3. If a pattern is valid, it will leap out at you from the computer screen

Read more at https://threadreaderapp.com/thread/996619500840632320.html

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