How to trade stock chart patterns

Advanced stock market trading tip for a

swing trading system

Classic rules dictate entry into trade after the breakout of a major support or resistance line.

But this advanced technique allows entry into trade already during development of the final stages of stock chart patterns. Typical is an entry during the development of the right shoulder of the head and shoulders pattern or during the development of the handle of the cup-and-handle pattern.

A very important condition for using this entry type is that the trader closely monitors the stock price for several days. It’s possible to find common patterns of behavior of a particular stock such as every morning rally fades by afternoon, which signals there are not real buyers in the stock.

Examples of stock trading signals for this advanced stock trading strategy

It happened a few days later, and this breakdown was the second possibility to enter short or add into an already opened trade. The target is set near the 400 USD support level.

You can see how this trade worked on the following chart:

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