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    ChartPatterns 2016 PDF

    Uploaded by

    Ruly Sudrajat

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    ChartPatterns 2016 PDF

    Uploaded by

    Ruly Sudrajat
    197 views1 page

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    ChartPatterns_2016.pdf

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    197 views1 page

    ChartPatterns 2016 PDF

    Uploaded by

    Ruly Sudrajat

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    The 3 Most Common

    and Profitable Chart Patterns


    Use this quick reference sheet to identify patterns and breakouts on leading stocks

    CUP-WITH-HANDLE
    The most common highly successful chart pattern is the Cup-with-
    Handle. This pattern often emerges at the beginning of a run-up in
    the stock price.

    Buy point occurs when a stock moves up through the handles


    high on heavier than normal volume, at least a 40% increase
    above the stocks average daily volume.
    Handle should form in the upper half of the cup, and within
    15% of the old price high.
    Base Length base should occur over at least 7 weeks, but
    can last much longer.

    DOUBLE BOTTOM
    After the Cup-with-Handle, the second most common
    chart pattern is the Double Bottom.

    It looks like the letter W, but the second leg of the W should
    go a little lower than the first.
    The pivot, or buy point of the double bottom is just as the
    stock surpasses the middle of the W as its coming up from
    its second bottom.
    Sometimes, a double bottom may form a handle area, in
    which case the buy point will be 10 cents above the high of
    the handle, just like the cup-with-handle.

    FLAT BASE
    The flat base is usually a second-stage base pattern.

    It has a minimum time frame of 5 weeks rather than the 7


    weeks minimum required of the cup-with-handle or double bottom.
    The flat base has a mild correction, not more than 15%, and
    the price range will usually remain tight throughout the pattern.
    The pivot or buy point for the flat base is 10 cents above its
    previous high on volume at least 40% above its average daily volume.

    Enhance your chart reading skills more by visiting www.investors.com/chartreading

    2016 Investors Business Daily, Inc. Investors Business Daily, IBD and CAN SLIM and corresponding logos are registered trademarks owned by Investors Business Daily, Inc.

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