The 3 Chart Patterns You Can’t Afford Not to Trade

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Chart patterns are specific price-action patterns in stock prices that have repeated themselves for decades, giving prudent traders many profitable trading opportunities. However, there are many chart patterns that are unreliable and not profitable. In this article we will cover the 3 highest win rate patterns that almost guarantee long-term profitability and gains.

Pattern #1: Head & Shoulders

The Head & Shoulders is one of the most reliable chart patterns, having accuracy of almost 90% and generating profits for decades. The head & shoulders is a reversal pattern, that indicates a shift in trend and beginning of a reversal.

We will usually trade this pattern when the neckline is broken, and will join the trade right at the breakout. However, for even more accurate entry it is recommended to wait for price to pull back to the neckline, and begin the new trend. The pullback entry is even more accurate than the breakout one, reaching around 95% accuracy. This is a chart pattern you must trade and master.

Pattern #2: Double Top

The Double Top is another pattern which you must trade, as it provides very good win rate (around 76% winning trades) and very consistent profits in many stocks and Forex pairs.

The Double Top is created when price tries to break a resistance level twice and is unable to, creating a shape resembling the letter ‘M’. Eventually price breaks the neckline downwards, which is the sell signal for chart traders. We will also enter a short trade if price pulls back to the broken neckline from below.

Pattern #3: The Channel

The Channel is one of the most accurate chart patterns that appears in almost any Stock or index, and are the foundation of trends. The Channel consists of two parallel trend lines in a certain direction – it can be either ascending or descending.

The Channel symbolizes a healthy trend in which price moves forward in a certain rhythm. We can trade the channel in several methods: The first one is to take trades on the trend lines themselves (make sure to enter only with the direction of the trend and not against it).

Another trading method that is particularly powerful with channels is to enter after it is broken: entering short when an ascending channel is broken and entering long when a descending channel is broken. For extra accuracy we recommend not to enter the breakout itself but wait for the pullback.

Conclusion

Chart patterns are a very reliable and consistent way of trading, and if you focus just on the 3 patterns mentioned above, you will generate stable profits from any market you trade. Choose one pattern at a time, learn to identify it on historical charts and then proceed to master it in real trading.

Steve Sollheiser is a trading veteran with experience in trading stock chart patterns and trading Forex. In his site he shares his insight about chart trading and trading psychology.

Review: U.S. Money Reserve Website and Why Gold is Still Important

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Recent news from Greece is bad, but the price of gold has come of recent highs of $1900 per troy ounce. This perspective from Mike Marlow offers some thoughts on this issue.

In reviewing the website U.S. Money Reserve it is interesting to note that there has probably never been a more opportune time to invest in and purchase gold. It is not even an issue of if one should invest in gold anymore, but rather an issue of how much to invest and how quickly to invest in this very important storage of value medium. The ability to store and preserve wealth is indeed one of the most critical elements of gold and precious metal investing.

Federal Reserve: Hardly Reserved

In a world where the Federal Reserve has gone literally haywire, by the unconstrained printing of money with the net effect being unfettered runaway inflation. This has a direct and measurable effect on the value of money. The more the Federal Reserve prints money the less that your money is worth, it is really that simple.

In responding appropriately any investor must find protective measures to insulate their wealth from this reckless kind of policy. U.S. Money Reserve is nicely organized and is easy to navigate when buying precious metals online. The real time ticker at the top of the page offers up to the minute gold and silver prices, this is convenient with all the recent fluctuations in gold and silver prices.

Buy the Dips: Value Investing

While these fluctuations may be a little unsettling, In truth, one would be well advised to just continue to buy on the dips in price. The reason for this is basic and simple. It is understood knowledge that the price of both gold and silver has be artificially and intentionally manipulated and held at a far lower price than normal market conditions would support. This is being done in large part to mask the fact that the US dollar is rapidly decreasing in value.

In other words, if gold were allowed to rise to its true market value it would in effect reveal the true worth of the dollar. This is being prevented from happening because it would then threaten the status of the US dollar as the world’s reserve currency. This is relevant to the precious metal investor because having this knowledge and understanding it makes the decision to regularly invest in gold and silver a rather easy one.

True Market Value

Once the artificial manipulation of precious metals ends, and it will as a law of economics, then the true market value of gold and silver will be reveled. This value will likely be many multiples of the current market value of precious metals. Further analysis of this issue shows that to an even greater degree, silver is more rare and valuable than gold.

All that Glistens: Silver

The historic gold/silver ratio shows that silver is perhaps one of the best investments one can possibly make today. Silver is unique in that it has real and tangible industrial uses. U.S. Money Reserve is a perfect site to track and monitor the change in precious metals prices. What makes it even better is that the site makes it easy to make a gold or silver purchase.

Surival Is the Name of the Game

In the coming days, there will likely be a substantially big paradigm shift in terms of money, finance and the global economy. This shift is unavoidable and will happen according to economic law and laws of the universe in general. A faulty and nonfunctional system will always eventually cease to exist, and equilibrium will eventually return. As a wise investor, looking ahead into the future, gold and silver are not an investment strategy, but rather a survival strategy.

Google Get St*ffed

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It really makes no sense to cull websites for keyword phrase stuffing if it’s using commonsense words … coffee maker is a distinct term from coffee (my niche), and though the term ‘maker’ denotes both a machine or individual, in an article that is about coffee makers, leaving out the word ‘coffee’ really makes no sense at all.

So, if you are writing about coffee makers, you also have to include other phrases like coffee spoon or coffee beans, if it’s Google’s intentions to stop keyword stuffing like that, then I’m afraid most sites are ‘stuffed’ (to use a colloquial UK slang meaning borked).

I think the only thing that Google is really concerned about is the searcher, and like the focus on the link (in PageRank) or the click (in Adsense), Google is looking for the USER/READER/SEARCHER and will use whatever algos ‘seem to pull that out’.

The problem is that an algo is no substitute for the fickleness of human nature, the cacophony and inconsistencies of human wants/needs/desires… and while Google may get close at times in mimicking reality (perhaps at an individual level), they will only mimic reality not capture its entirety.

We only have two defences against this onslaught of quasi-AI algo-fakery: our brand and our relationship with our readers. By building our relationship with readers and stating, clarifying and publicising our BRAND, we can & will be able to beat Google’s algo-nonsense.

So build a brand INTO your website and go find your audience, wherever it is. Google’s search engine is fast becoming a very dangerous place to be, as each of us waste our precious hours wondering what we did wrong each & every time the Panda strikes.

The only thing we did wrong: we spent too much time chasing Google and we failed to satisfy our customers properly. That’s it. That’s all.

So get out there, read the A&R and make your readers HAPPY. Make them delighted. Make them want to come back. Make them NEED to come back. And may Google get ‘stuffed’ instead.