Practice makes perfect. Now I spot them everywhere. These are my notes from chapter 8 of the Tradementor series by Tom Hougaard.
Patterns work on any time frame, but are more significant on longer ones
- Trading channel
- Horizontal S&R
- Old H/L become new S/R
- Previous H/L acts as new S/R
- H&S, neckline break
- Lower volume during head
- Confirm with engulfing or doji
- Double tops & bottoms
- Flags (3 tops/bottoms in channel)
- Pennants, triangles
- 3 legs up
- 3 legs down
Don’t get out of winning trades just because a certain level was reached, rather let them run and up your stop.