The Best Chart Patterns To Trade (Reliability Study)

There are numerous chart patterns that form with considerable consistency in the markets, and traders often see them as the holy grail of stock trading.

The truth is is that chart patterns are only a small part of a profitable trading strategy, from cup and handle patterns to head and shoulder patterns, there are many to choose from but they become far more profitable with other factors added.

In this video we look at chart pattern success rates and some other areas to consider to get the best out of each.

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As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.

[keithb]

Pennant 5:50
Flag 6:15
A/D Triangle 6:50
A/D Channel 7:15
Double Top/Bottom 7:40
Triple Top/Bottom 8:25
Rectangle 8:52
Head & Shoulders (/Inverted) 10:02

[susannnico]

The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2016. You’ve got to start taking steps to achieve your goal.

[PanteraRossa]

The main takeaway for me here is pay attention to consolidation zones. These are liquidity zones like trenches where short timeframe traders are ready to load up and move with momentum whichever way price breaks. This is where the best risk reward is found, regardless of timeframe. It's when short term traders are in control because that drives momentum, and as momentum gets accepted, long term comes in and forms the consolidation levels and we start all over again.
Don't get too technical with pictures and terminologies because these "stills" are never real in an open market. Your drawing keeps changing and most patterns in this video become each other, the moment you look it's changing like a bull flag will turn into a channel, a double top may become and ascending triangle or breakdown, it's just too noisy. Instead focus on contraction and expansion of volatility to determine momentum and confirm with longer timeframes to get ideas.

[Mehrdad]

My first real intro to this field, thank you for good content.

[milesvanrothow]

An excellent video, very clear and easy to understand. I knew about these patterns, but having the statistics helps me understand the relative reliability of each one and how much to trust them - some little more than 50% reliable.

[FinancialWisdom]

My Brokerage Account (Interactive Brokers) - bit.ly/3UGvn1U

[JackedtheTs]

Using these “behavioral price patterns” at predefined key levels, along with a 9, 10 or 11 ema (they are all close), in conjunction with a 200ema crossover for timing, is fairly effective.

[DilipRavariya]

1st Should be Cup & Handle pattern probability is very high

[sp-yeht]

Awesome & well researched video..& the presentation.. Of course.. Great going..& keep growing..👍

[DayzO]

What a great video, recently have been mixing up these patterns because visually they look really similar but as you point out the small difference give a big success rate between all of them.

[istvantorok]

Love your vids !!! Very clear info . Thank you

[yiguangyu]

An excellent video, very clear and easy to understand

[Itsjust_alexp]

Just want to tell you thank you for this!

[cnsushil]

This video makes it look so simple to trade in patterns. But in reality it's not that easy.

[kev]

The quality of all your videos, contents and the insight is absolutely amazing. Very professional and I know it’s helping so many people out there. Thank you so much 🙏. Especially compared to those fake gurus out there who haven’t got a clue and scam people out of their hard earned money. Financial Wisdom is a breath of fresh air. Keep up the good work. 👍

[SarkisKlinik]

Hi, how to find or search for bullish rectangle pattern in finviz screener?txx

[SarkisKlinik]

Hi, is there free stock analyze software or screener that automatically analyzing and identifying my stock pattern ?txx

[marzi]

Fantastic explanation, best pattern I have come across so far

[giannisantoniadis]

So much value thank you brother!
Do you think Double top, triple top and rectangle are very closely related and can give pretty much the same results? it depends on how you look at them they can be considered the same structure.

[dedinojairus]

Hello, please does the breakout scanner work for forex pairs too or just for stocks?
Does it send allerts?
thanks