7. Day Trading and Investing: Charting Patterns Lesson 1
Thursday, July 29th, 2010 at
8:54 pm
InformedTrades asked:
www.informedtrades.com The first lesson in a series on chart patterns for traders and investors in the stock market, futures market, and forex market.
Tagged with: Chart Patterns • Day Trading • Futures Market
Filed under: Investing
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Great video,informative. But I prefer Free EA
Great video. Awesome. Thanks a tonne for sharing !!!
Hello May I ask what time frame is this?
Not supposed to buy when it going down and sell when it set up?
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WAIT…he said there would be sell offs in both cases?
i never would have guess that that was what was happening on my own w/ the double top/bottom
What are u talking about ….this fundamentals.You do ur practice or try real after learning. Atleast contribute information, dont be dump.
I think David is doing a great job. We shouldn’t criticize with his work. It did help me a lot as a novice trader when I started trading few years ago. Thanks David for all the free info. Keep up the good work.
To be frankly, these videos doesn’t help and make worse when people believe your theories. Because these theories were all PAST, not future. If you want to teach or help new investors, tell them with the half chart, which means, the chart that doesn’t appear to be double top or double bottom, still in progress and take action, BUY or SELL? NOT just speak from chart, but do it LIVE, then you are real, or you are just lame.
I was referring to certainty in trend forecasting.
You make some very good points, thanks again for your intelligent and thought out responses.
Well, again, there is no certainty in how much you are going to win. The only two things you totally have control over are 1) the entry point of your trade and 2) risk management, where your protective stop is. You must know where your protective stop must be and what your profit target is BEFORE you enter the trade. So these are all known things. What is unknown is the amount of profit. But risk and potential loss are known.
Yeah I’m now getting it. There are no certainty in trading whatsoever, just degrees of probability. Thanks for taking the time to answer my Qs.
Sellers do not short-sell TO drive a price down. Sellers are trying to get on a down-move of the down trend, or a down-move in the price action. However, there is something called “self fulfilling prophecy”, when many traders, by doing the same thing, move the price one or the other direction by sheer volume.
What you are missing is that there are no absolute indicators that will tell you exactly what you want to know. But a double top, or bottom, indicates stronger resistance or support, than one top or bottom. Ideally we want to avoid trying to pick a top, so there is no such thing as “a single bottom strategy”. The more times the price touches a support or a resistance level, the more confident we are whether it is a support/resistance level or a retrace from the previous movements.
So does the double top or bottom establish Resistance and Support or is it already factored into the market? Also why just two runs, why wouldn’t buyers make a third, forth or fifth attempt to break through the Resistance level (or is a double just a strong indicator)?
great video
So, with a double bottom, sellers are short-selling to drive the price down? and with a double-top buyers are trying to drive the price higher!? What is this logic?
Hi Dave, very good lessons, well explained.
I picked out charts for 2 different stocks and an index (FXP, DIG, $COMPX) on market close on 11/13 to illustrate this question: they look almost identical!!!! I know they should be somewhat related, but all the time I thought that I could be shorting a fund of Chinese companies (just turn the FXP chart upside down) or buying into oil and gas; but compare the charts, they are practicallly identical! How can it be?
Chart patterns… BOING
IM FREAKIN *****! I
thanks for the comment I am glad you liked it. Best Regards, Dave
Good job sir!