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Chapter 8: Identifying Patterns in a Stock

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Some of the most popular stock market strategies focus on patterns. These are cases where something might change within a stock at a given time. Patterns show how the price of a stock is moving while giving signals that suggest something will happen. There are many patterns and it is easy to figure them out when you look at how a stock is evolving. You can use these to plan your strategies for how you will enter or exit trades or when figuring out the kinds of trades you should make.

Note: All patterns can be identified by looking at a traditional candlestick-based stock price chart. This would show you how the value of something consistently moves up and down within a brief period of time.