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Strategies & Market Trends : gem-x's incredibly accurate Elliott Wave forecasts. -- Ignore unavailable to you. Want to Upgrade?

To: robert duke who wrote (347)	8/11/2001 11:38:48 AM
From: eichler	Read Replies (1) \| Respond to of 2290

robert, Sure. Chart pattern trading is quite popular. Many chart patterns to trade potentially. Some are considered more reliable than others. As I recall when I was reading IBD over a year ago, the Cup & Handle pattern is covered frequently in IBD and would be worthwhile to subscribe and read for awhile as you can be assured there will be frequent discussion about that particular pattern. As many different traders and personalities exist there are as well a wide range of preferences for the recognized patterns based on experience, understanding, knowledge. Personally, I am not so keen on the C&H...I prefer bases and breakouts though I have acquired a taste for wedges, triangles, channels and a budding interest in the head & shoulders pattern. In a C& H, there is initially an extended decline in price, a rounding bottom with base followed by an upward climb back near the point where price initially dropped off...creating a bowl-like appearance after which an extended re-testing of higher and lower ground resulting in a flat or slightly declining new base which can be imagined as a handle to the right of the bowl or cup. The handle results as the battle between traders happy to exit their long underwater positions provide resistance to the upward pressure of new traders attracted by the prospect of a fresh breakout. Often traders will watch the development of the handle and volume information and watch for the break-out (presumably to the upside) to follow. I can assure you that my description is very likely oversimplified and I highly recommend doing your own research, perhaps splurging on a chart pattern book and perhaps perusing various websites which cover chart patterns. Here are two websites which discuss a variety of patterns, and perhaps a web-search can yield some others. Maybe some readers of this thread can add a few links for you as well. chartpatterns.com stockcharts.com The more you research and study on your own, the better you will understand and retain the information you seek. Best of luck on your quest for chart pattern knowledge and I commend you for desiring to add to your trading toolbox of knowledge. The better armed you are in recognizing patterns and tendencies, the better your chances of surviving and prospering in the stock market game. Feel free to ask more questions, my time is limited but I will always try to answer when I can and preferably, if you can provide a chart example with your question, I think my answers will have more relevance to you. Best, Eichler