Most Accurate Price Patterns for Maximum Profits
Trading price-action can create very stable revenue for the astute investor, and can generate good income on multiple Forex pairs, futures and commodities. In this item we will describe selected few of the most accurate price-action patterns for most profits.
Pattern: Support and Resistance Pullback
The pullback is one of the best stock charts signals, as it usually has win rate of 75%+ on various FX pairs and stocks. The theory behind the pullback is that price breaks a certain support\resistance level and tests the level after the breakout. This allows traders to join the new trend at a very profitable price, with small stop loss and relatively high profit target.
The pullback occurs in various chart patterns, such as the Double Top, Ascending Top, Broadening Top, Head & Shoulders and dozens more.
The channel is a popular trading set-up that can be seen on many FX pairs and Futures for many of decades and generate big profits.
Channel pattern is built of 2 parallel trend lines that trend in the same direction. We enter long positions in an climbing channel and enter sell positions in an descending channel, to make sure we never enter trades against the trend. We could also take pullback positions when the pattern is broken in the opposite direction, as it can helps us make profit from the new trend (reversal) at an early point.
Pattern: MA Test
The MA bounce occurs when the stock price touches a moving average in the middle of a strong trend - it is a retracement that usually results in a resumption of the movement and a profitable price to join it. Make sure that price trend is strong by observing the direction of the moving average and making sure that it is sloped and not flat (which confirms powerless trend).
Pattern: Double Top
The Double Top is a highly potent set-up that has 72% win rate in some charts, and is considered a very reliable stock set-up. Double Top occurs when price reaches the same resistance price twice, drawing a chart that is similar to the letter M. Position is confirmed when stock price breaks the lowest low between the two peaks downwards and begins to move down, and we may join that movement at the breakout of the neckline or at a pullback. All of those trading set-ups are accurate, have proved high hit rate, and can be traded on any Forex pair, future or commodity. You don't have to be a trading "guru" to profit from these trading methods - just follow the basic guide-lines and you will quickly see that making money from stock trading is not so difficult. Follow the procedures shown here and do not deviate, as it will most likely lead to losses.
Choose a method, test it and master it - this is the real way for trading profits for the long-term.