10 Chart Patterns That Can Make You Money

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However, nobody can predict exactly what a specific market will do at a precise time in the future. The true professional traders will tell you that market analysis is not a business of predictions but one of probabilities.

For many traders, going with the probabilities means analyzing charts to find patterns that reflect what people have done in similar situations in the past. Human behavior and price history tend to repeat themselves, and from the tracks that prices leave on a chart, one can extrapolate the probability of predictable patterns of price behavior.

The 10 chart patterns in this e-book are not the only patterns traders visualize on charts, of course. We don’t say much about the various triangles or pennants or flags or rounding bottoms or cups and saucers or gaps or the patterns of the many technical indicators that some traders use to determine entry or exit points or to measure the potential extent of a move. We have just selected 10 chart patterns that we think provide some of the more reliable clues about the probabilities of future price action.

You'll note that all of these chart patterns can be spotted rather easily by the naked eye. Naturally, you’ll want a computer to gather the data, generate the charts and compute some indicators quickly on the screen, but the computer in your head is the key to “seeing” these 10 chart patterns that can make you money.

With this complimentary eBook by Jim Wyckoff, Futures traders will be able to analyze charts to find patterns that reflect what traders have done in similar situations in the past to gain clues about the probabilities of future price action. This includes patterns like: 

  • The Venerable Trend Line
  • Support/Resistance
  • Retracements
  • Moving Average Crossovers
  • Collapse in Volatility
  • Trading Range Breakouts
  • ‘M’ Tops, ‘W’ Bottoms
  • Key Reversals, Engulfing Patterns
  • Dojis
  • Exhaustion Tails