Stock Chart Patternsfor successful stock tradingStock chart patterns are an important part of my stock trading strategy. They help to visualize important levels of support and resistance.If you want to trade successfully, you have to know important stock chart patterns and how to trade them. Why are they so important? They can help to predict possible future price action. There are two important groups: Both groups can use a basic or advanced stock trading chart strategy I often mention these patterns in my free stock and ETF trading newsletter. You can see there real time examples and what they say me about actual stock chart situation. This type is often found in some trend moves during a consolidation period. The price rests after a strong trend move. This group represents trend reversal periods. The stocks finished the previous trend and are preparing to enter an opposite trend period. This formation lasts longer sometimes than continuation type. I like all formations described on my pages. When I look into my stock trading journal I can say that the most used patterns are flag and pennants and head and shoulders. It looks like I like these most. It is good to check your stock trading journal every 6 months or so to learn what type of trading is producing best results and to check what stock chart formation fit best to your
stock trading system.
As name of my site describes I use simple stock trading rules. It means that I use only basic versions of these formations. You can find more types described when you will learn technical analysis. But I think that they are not needed.
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