Chart Patterns

Did you ever think as a kid that learning to draw, connecting dots and even geometry would ever be useful later in life? Me neither. In fact, when I first heard of such activities related to options trading, I thought someone was pulling my leg.

Here I am, many years later, making money based on those skills I learned early on.

Well, sort of. It is knowing how to draw out charts, what dots to connect and how the geometry functions that are the valuable keys to success. Oddly enough, not as many people understand these rudimentary skills as I expected. And that puts us at a distinct advantage. I talk to many people who still trade options as if they were stocks, totally oblivious to these precious price patterns.

You see, combining cool chart patterns on various time frames can provide a microscopic look into what the market is doing and what it is about to do. Add support and resistance into the mix and it is almost criminal as to how we can see the rollout of price patterns to take advantage of the moves. Most importantly, we can determine where the price of the options will likely go. It is like having a GPS system with real-time traffic information guiding you along! All you need to do is patiently follow.

There are many chart patterns, but I only use a select few. These patterns are so incredibly accurate that when they form, in conjunction with key support and resistance areas, they are almost a guaranteed win. Double tops, double bottoms, head-and-shoulders and inverse head-and-shoulders… these are but a few that you can master in order to crank up your cash machine.

To be clear, there are certain tricks to these patterns you need to know. Just because a pattern sets up does not necessarily mean a great trade is around the corner. And it is for that reason we will be presenting our much-requested, ever-popular workshop on Chart Patterns.

Note 11:30 am, ET, Wednesday, Nov. 20 on your calendar. Budget an hour and a half for this amazing live workshop on chart patterns. In addition, we will teach you how to apply our exclusive “Yellow Brick Road” indicator. Once you establish this on your charts, all you have to do is follow it… and remember to take your profits. Yes, technically, it is that easy.

Where the difficulty lies is having the discipline, patience and confidence in the patterns. That conviction will come once you repeatedly see how the trades play out. As part of this workshop, we will endeavor to execute some real trades, provided the patterns present themselves, of course.

Traders, I have been making money by using chart patterns for pretty well my entire trading career. The system has never changed. The math behind it always was and always will be. Imagine being able to predict where and when the price will likely go, either up or down. Like igniting a stick of dynamite, the combination of support and resistance off a chart pattern can be explosive.

A retired doctor-turned-day-trader, Dennis A., once told me, “Had I known this many years ago, I never would have gone through medical school to be a gastroenterologist.” I replied “Dennis, there isn’t enough money in the world to make me do for even five minutes what you did. I prefer to just draw lines, connect dots and work with geometrical shapes. It’s just so much, ahem, cleaner, if you know what I mean.”

I have seen lawyers switch to trading, business owners sell their businesses to trade instead and accountants who make more money following chart patterns than slugging away reviewing audits. Are we doing our kids a disservice by sending them to college? Or should we be teaching them how to make a living instead?

My inclination has always been to keep my analysis simple. By doing so, I am able to secure a reasonable gain almost every day. Either you will be part of this select few who understand the intricacies of these technical indicators and make money, or you will be trading against them. Your choice.

Join Ahren and me, 11:30 a.m., ET, on Wednesday, Nov. 20,  for this informative, engaging workshop on Chart Patterns. Click here to register. Can’t make it? No problem. It will be recorded.

By the way, my favorite pattern is the cup-and-handle. Find out why I renamed it my “money in the bank” pattern!