A Stock Chart Cheat Sheet Worth Your $STUDY

I’m not sure who created the below cheat sheet but it is worth sharing. If you spend some time studying it, these patterns will begin to jump out at you when you are looking for stocks to add to your watch list.

Since proper risk management can be the difference between a profitable trader and one who goes bust, knowing the area in which to set your stop is critically important and this cheat sheet does a great job of identifying stop areas for you.

In my swing trading process, I screen for sectors that have been performing well on a daily, weekly, and monthly basis and then I screen for stocks within those sectors. I then look at the charts of the individual stocks to see if any are displaying bullish or bearish patterns like the ones listed here. Chart patterns help me narrow down my watch list to a manageable number of stocks with a higher probability of success.

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2 thoughts on “A Stock Chart Cheat Sheet Worth Your $STUDY

  1. Thank you for this! I’m always curious what time frames should be used to analyze these candles. I think it’s usually yearly/daily, but can this work on a weekly or daily basis as well? I look forward to your answer and appreciate your explanations!

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    1. They work for all time frames. The key is to figure out what time frame you are trading. If you are a swing trader, you are looking for these patterns on the daily, weekly and monthly charts. If you are a longer term trader, you are looking for these patterns on longer time frame charts.

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