All language subtitles for 1. Chart Patterns Intro

For many people, when they think of technical analysis, they're really thinking about patterns, you

know, patterns on a chart, maybe you're on trend lines or hand drawing patterns or recognizing patterns

on a chart.

And we never know hands for them or the trading platform will actually help you to draw lines electronically

on the screen.

They're very helpful.

That way you can use different colors, all sorts of great stuff.

But this idea is like, oh, the chart.

And sometimes it's called charting, you know, for that reason, because you're looking at these patterns

and there's nothing wrong with that chart pattern.

Trading and trading off chart patterns has been very successful for a very long time and can have some

of the strongest indicators out there as far as making decisions around whether to buy or sell a security.

So and the House really fun, cool names sometimes like they're going to fun names like the dead cat

bounce right.

To who would want to trade based on something that's called a dead cat bounce.

Or if you wouldn't like to trade on that because it's like cats.

I don't know.

I like cats used to have cats.

So some people will trade only on chart patterns.

So they learn their favorite patterns.

They really become specialists in those areas and then they can visually recognize them fast.

In fact, if you really are a visual learner or visually like to look at, you know, analysis and things

like that, you know, chart patterns might be really great for you.

If not, they're a good thing.

Another tool in the toolbox, of course, as far as different indicators and combination of indicators

that you can put together.

But they can really for those who can if you can see these patterns developing, you know, it gives

you an edge over maybe other traders who can't see them developing as quickly.

And my goal here in this series of lessons to help you be able to see those patterns, you know, easily

as far as seeing the patterns and the ideas, you're going to visually see these broad patterns.

And the way may look like objects.

Actually, a lot of their names come from that.

You will see in the upcoming lessons you only might look like a triangle or a rectangle or other shapes

or or things like a cup with a handle on it.

And when these things form, that mean something might be happening.

And the idea is a pattern that's in the case, something in the past and has been proven over time will

do so again in the future.

Now, nothing's perfect, of course, but that's the idea behind it, that similar situations will recreate

these repeatable patterns and we can trade off those.

In fact, your fellow traders out there are seeing these patterns some faster than others.

But when they see these patterns, they're reacting in predictable manners.

And for us, when we're training and we have these indicators, when we are, we can see, you know,

the larger group of traders out there in the world, you know, behaving in a predictable manner that

allows us to really be confident in our trading itself and in our actions and our strategies that we're

putting together.

Then these chart patterns most often play straight lines in many cases or try to or certainly and draw

on a trend line in.

Some, of course, are much more dynamic in their shape and apparently follow typically either the highs,

the lows.

Right.

So you're seeing these patterns of help or on the highs and lows and pattern types are organized, whether

they forecast or predict or indicate a continuation or a reversal of the current price move.

So the idea is you're seeing a trend are there upwards or downwards and you want to look at that pattern

that's developing and see when you recognize that pattern and maybe the investor trade around that pattern,

is it going to continue?

Let's say it was an uptrend.

Is it going to continue in that uptrend?

So we might we've already bought we might want to keep holding that until it gets to a reversal point.

Or maybe we want to buy now and ride that uptrend.

And some will indicate a reversal, which is the exact opposite.

Maybe it's been in this example, an uptrend and now it's starting to run out of steam and it's going

to change and go either sideways or maybe start going down.

So maybe if we own the security, we want to sell more closer to the top.

So continuation or reversal patterns are very important to recognize which is which.

And we'll be going into that, of course, throughout the upcoming lessons.

Now, it might take a little practice to start seeing the patterns.

OK, that's OK.

That's normal, because when you deal with real life, you know, things don't match up perfectly.

You what what I might demonstrate or you might see out there might look like a triangle, but when you

go out in the real world, it might not be as perfect a triangle, for example.

But you still see in that that movement as far as how the prices are reacting, you know, let's say

inside the triangle, in the triangle section.

So so it's OK if they don't match up, you know, in a perfect thing.

And it's not a perfect world that we live in.

The only thing that can frustrate a lot of people are our patterns, too, is that they take time to

develop.

It's not like something that.

OK, so you look at the next day's price bar and also, boom, there it is.

You know, there has there's the development might be that next week's price bar is the one that now

confirms your idea of what you want to do and hit it, did something and now you're going to take action.

But to get to that point, a pattern had to develop over a period of time.

And the period, of course, can be, you know, the period of time from you choose whether it's short

time periods like, you know, minutes, hours or days or longer periods, like weeks or months or even

years.

So that's the idea behind that.

The time frame can fit, you know, these patterns, you know, anyway.

Any way you want to, not any we want them to, but any way you can use the pattern the same way no

matter what your time frame is.

But a lot of times you could see a pattern developing and you be get excited about it, like I could

see it coming.

I just need a little bit more and I can confirm it and I'll buy in and I'll be great.

And then something changes.

Something changes in the news.

There's a big event that happens.

Right.

And your pattern never fully formed.

So that could be a little frustrating, too.

However, when you get it right in a pattern, it fully develops.

It can be a very, very powerful indicator tool that you can use very, very powerful.

So it's something you do really want to become familiar with.

Plus, parents can help with your confirmations.

They can help confirm other indicators you're using.

You'll learn about and things like groundlessly how to trade off moving averages, for example, and

you can use it to help your chart pattern can help confirm that maybe a trend exists or that what you're

seeing with your moving average indicator or tool is being confirmed by another chart pattern or vice

versa.

Or you can use it to confirm around things like trading volume changes.

Right.

So you see a pattern.

You can confirm that chart pattern itself because the trading volume either goes up or maybe starts

going down.

A lot of times when there's a higher volume will typically indicate that the pattern is down, reaching

its completion phase.

And so it's ready to be trade worthy as they see it.

So there's an art and skill to that a little bit as far as as far as doing chart patterns and all that.

But I think for many people, that's one thing they love about technical analysis, is they love that

kind of idea of looking at patterns and making decisions off of them.