Swing Traders

When to buy and when to sell is often the question when it comes to trading in stocks.

The answer though, could very well be found in chart pattern recognition.

Identifying chart patterns is simply a form of technical analysis.  And technical analysis is just a method for trying to forecast market trends and turns.  Hundreds of years of price charts have shown that prices tend to move in trends.

A trend is an indicator of an imbalance in the supply and demand.  These changes can usually be seen by market action through changes in price.  These price changes often form meaningful chart patterns that can act as signals in trying to determine possible future trend developments. Research has proven that some chart patterns have high forecasting probabilities. These patterns include:

• symmetrical triangles;
• ascending triangles and descending triangles;
• wedges;
• flags and pennants;
• rectangles;
• head and shoulders patterns.

In our opinion Ascending Triangles and Descending Triangles offer the best probability and are the best patterns to trade.