Chart Patterns

This page is going to act as examples of successful technical analysis that helped anticipate high probability trades.

Exhibit One


This is the S&P 500 futures from the beginning of 2012 until early March. What is important to take from this is that one could have noticed the trend and taken advantage of entering on support and secondly that order amidst the chaos exists.


Here's what happened when it broke that support channel (the lower trendline). One could have correctly anticipated this occuring and then taken necessary precautions ahead of time to protect their long positions, go to cash, or hedged or speculated by going short.


Exhibit Two


This is another S&P futures example. The important thing to see on this one is that a savvy trader had a 2 minutes forewarning of an impending market sell off and had they acted fast, could have gotten in before the crowd. Take a look at that inverse candle stick highlighted in blue. What happened here is that price moved up quickly in a minute, then volume came in and gave back all those gains in the same minute time frame. The  giveaway was the large amount of volume taking place which lets you know that large money is coming into the market. In this case, it signalled an imminent reversal and price fell right afterwards.





0 comments:

Post a Comment