Chart Strategies

A charting strategy is essential because it increases objectivity and improves the odds of success. A basic chart strategy is similar to basic black jack strategy. In his classic book, Beat the Dealer, Edward Thorp, lays out a basic black jack strategy with a set of rules to improve the odds. Once players master basic strategy, they can move on to card counting and such to further improve performance.

In an ideal world, trends would be consistent and persist for months. An ideal uptrend would march higher by consistently recording higher highs and higher lows. Once reversed, a downtrend would take over and work its way lower with lower lows and lower highs. There are plenty of chart examples for these consistence and persistent trends.

The falling wedge is a bullish continuation pattern that chartists can use to trade or invest in the direction of the underlying trend. I realized that some books show falling wedges as bullish reversal patterns, but I am only interested in bullish continuation patterns and I choose to ignore names that are hitting new lows. This video will show

Chartists can get a jump on a bigger breakout by trading the swings within a developing pattern. In this example, I will outline the steps to identify these setups and the triggers for the trade. We will start with the overall

2021 is just around the corner and chartists without a strategy should think long and hard about getting one. Trading in the direction of the trend is pretty much my bread and butter strategy. I do not fish for bottoms or attempt to pick tops. Tempting as it often is, I try to refrain from such endeavors as much as possible. More often than not, we are better off using trend-following indicators to identify bullish and bearish trend reversals