Thursday, March 09, 2006

Chart Pattern Book

Regardless what type of trader you are. If you use Technical Analysis in your trading I would suggest you start a chart pattern book (if you havn't done so already). Every time you encounter a great setup in realtime, you make a screenshot and copy it in your chart pattern book. Add some remarks, if necessary and over time you will get a great resource of patterns you consider worth trading.
It doesn't matter if you took the trade or not, but I would suggest you only copy patterns in your book, which you have seen develop in realtime. Thing is a pattern often looks very clear in hindsight, but you need to learn the price behaviour when your pattern is forming, so you will be able to recognise it, when you encounter it again in the future

1 comment:

The Stock Bandit said...

Great idea! I have many chart patterns on my site but keeping your own is an excellent thought. I use Snag-it screen capture software which makes it very simple to capture the chart region of my trading setup. Keep up the good work!