Profile picture
Subhadip Nandy @SubhadipNandy
, 11 tweets, 2 min read Read on Twitter
I see a lot of traders following classical chart patterns . Being a pattern follower myself for some years , here is my advice to them as I feel some pointers will improve their accuracy . Again , this is not the only correct way but what I have learnt from my experiences
1. Volume confirmation is a must. Without the volume rules being fulfilled , there is no importance to the pattern
2. Understand where the pattern is taking place within the major price structure of the index/stock. An inverse head and shoulders bottom reversal occurs at market bottoms , not at market tops
3. If a pattern is valid, it will leap out at you from the computer screen . If it takes a lot of time for you to "see" the pattern , you are probably imagining things
4. Understand how the market players operate so that a pattern is created . Understand the psychological basis of market participants within the pattern . Best resource : Technical Analysis of Stock Trends by Edwards and Magee . You should read the book at least 10 times or more
5. A pro tip : Use line charts while searching for patterns . Bar charts or candlesticks will be confusing , a line chart consisting of only closing prices is much easier on the eye
6. Check whether major support/resistance zones exist after a pattern breakout. In short , check whether the breakout has empty spaces to run
7. Define an entry stop and how you will trail the trade once it get's going. Define when and why you will exit if something changes . Have your plan ready before you enter the trade.
8. Use modern indicators to support the pattern breakout. See whether a price breakout is supported by a momentum , volume or volatility breakout. If so , it adds weight to chances of success for the breakout
9. Last but not the least , use some for of money mgmt for initial position sizing and then scaling in or scaling out.
#bestofluck trading patterns :)
10. Trading patterns will need years of practice , there is no shortcut. The amount of time you spend and see the patterns working out will add to your experience . Took me 5 years to successfully trade patterns :)
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Subhadip Nandy
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($3.00/month or $30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!