Candlestick Patterns: Two to Trade & Two to Avoid
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- Опубликовано: 21 июл 2024
- Candlestick chart patterns are SO important. They can repeat over and over. You need to learn to recognize them so you can spot solid trade opportunities. Today, Tim Bohen will discuss two patterns you should look for - and two you should avoid.
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Let’s start with patterns you should trade ... like the bullish uptrending chart. It has a long history of consolidation, a big high-volume breakout, and then it just gradually uptrends. Look for those higher lows and higher highs - these are where you want to draw your trend lines.
That's the kind of chart you want to look for. Gradually uptrending, breaking out on the 52-week chart, with building volume, higher lows, and higher highs.
Next, let’s look at a consolidation and breakout chart. Gap up, consolidate, and then re-breakout. You can actually set alerts in StocksToTrade or whatever platform you're using for this pattern. So if you miss these big gap ups, you can set an alert at that next breakout area.
For example, say you have a big high-volume candle. It gaps up, and the stock goes into consolidation mode. Consolidation mode means it's in a tight band. The stock is just tracking sideways ... It's not breaking out, but it's also not breaking down. That means the stock is collecting buyers. It's building momentum, and it's holding its gains.
Now everyone is looking for that next breakout area. You're looking to buy those breakouts with risk. You set your risk on the failed breakout level. Not every trade will work, but these are common patterns.
Now, onto the two patterns you should avoid...
Let’s say a stock does nothing for a year but drop lower and lower. Every single day it just trends lower. And when it does bounce, it closes on the low of the day, then continues its trend down lower. That’s what we call a ‘dead cat bounce.’ Don’t EVER try to trade this pattern.
This is a stock, until something significant happens, that you should avoid. The risk/reward just isn’t there on the long-term downtrending chart.
The last one I want you to avoid is what we call the ‘one and done.’ This is a chart where the stock spikes, but then those doji candles pop up. Every time the stock spikes, it spikes up but then closes almost on the low of the day. It’s possible to win here and there. But these stocks tend to squeeze, drop, and stop you out. And that can create frustrating losses.
So remember, the bullish uptrending chart and the consolidation breakout are two you should focus on. And you should avoid the long-term downtrend (the dead cat bounce) as well as the one and done.
#StocksToTrade #StockMarket #CandlestickPatterns
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
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Are you trading these patterns?
Yeah, I am learning to find better patterns and charts. I am curious if that dead chart includes the 10 yr chart to avoid? I have noticed you reference the 1 yr dead chart. So that must mean a different pattern within the pattern?
This is what I'm trying to figure out. Thank you! I now can confirm not to trade at least the 1 yr dead charts =)
How to trade these patterns?
That last chart with the big wicks and fail. Are that good charts to look at to short?
Why isnt this considered a supernova. If it has history of spiking and has a common catalyst that makes it happen wouldnt you want to trade it?
To risky,I have been setting alerts
I watched this video several times and TODAY it finally clicked!!! Thank you Tim
Love how Tim makes it so simple...I have caught 3 times in such dump and pump...I had a chance to get out on profit/even out but got greedy to hit my goal and paid for it...Small position size saved me
Awesome TB .I love to hear your teaching you explain it clear.
Glad to hear it!
1:30 Knowing not what to trade! Thanks, Tim. It's golden advice.
Thanks for the vid Tim, always appreciate you sharing your knowledge. Id love to see some more videos that focus more on fundamentals, as that appears to be a weak point in my trading. I dont yet have a feeling for what is good and whats not. Thanks, Ill see you on Monday for your livestream!
This is great! There is the chart to back it up. Keep giving us visuals. thanks tim
Hey tim.love this video can you do more videos like this.wow showing the chart and explaining more.very useful and helpful
I have not traded dead cat bounce or doji candle. I have traded bullish uptrend. But didn’t stay in long ..took my win and decided to wait til it came down...(gold explorations) it has not come back down yet
Man I'm learning SLOWLY but surely thank u for the video definitely helps
Not trading any of those, but do have one that shows consolidation before an uptrend. I don't stick to viewing just the day, month or year charts, though. I look at them all. I want to know what is possible in a stock. Maybe it won't repeat, but then again, maybe it will. Uptrend/Green/Go. Downtrend/Red/Stop (unless you're shorting, of course, ha ha!). Yes, this is very simplistic, but I am aware that there are many other factors to consider. Many thanks for this valuable illustration.
Good! You're very welcome.
Does STT have a tool that draws the “breakout levels” or support/resistance lines for you? Or are these levels manually determined and drawn? Thanks!
Great video. Following your suggestions and making progress. Plan to watch all your videos.
Awesome! Thank you!
Yes I have gotten caught in the down trending chart. I totally understand the patterns better now/ love your videos Tim👍
Thanks Tim. Solid advice. Do you also use double / tripple tops as signs of bearishness and double / triple bottoms as signs of bullish reversals?
by far the best channel and software I've came across in my trading career.
Love this video. Thanks Tim!
Thanks for the videos Tim...I think Im starting to understand a little more.
You are my favorite You tuber! Thank you Kindly for your time and help.
Thank u Tim B for all your help and video
🙌
wow tks for all your help to teach us how to trade those patterns!!!!!
Oh Yes I have been suckered into a downward trending chart and held over time to luckily make my money back but either way it sucks as my money is locked up and wasn't looking to take a lose.
I always enjoys watching Tim Bohen"s video lessons.
Yes I am one of them. Thanks for opening my eyes.
You should cover a video on some good overnight hold patterns for us still under the PDT. They are a bit tricky for me.
Tim Sykes does hold positions over night on Friday when catalyst news come out a day of r two days before the chart breaks resistance. If the volume is good he buy on Friday and sells on Monday when the the uptrend continues above the previous high on the close on Friday.
@Big Ballah So you're saying swing trading is a bad strategy? Are you crazy
@Big Ballah since when?? I have 60 - 100 at any given time!
@Big Ballah stocks
That's how you make money bro... Don't be scared and sell make some real money!
Yes I have gotten caught in the down trending chart. Thanks for the videos helping a lot
Thank You For That!
are these 4 strategies valid for very short term trading as well Tim? for example if I wanna be in it for a day or two?
Thanks Tim great video and what to focus on
You got it!🙌🙌🙌
Thank you!
Thank you so much!)))
Thanks teacher!!
Yes traded several down turning charts. For instance what is PGY doing?
Do you have e video on SSR and how to take advantage of it as a trader?
is there a difference between authorized shares outstanding shares, i know the definition but does the sped between them matter for supply and demand???
Great info Tim!🔥 thanks
Also, loving the steady trade podcast!
Thanks for tuning in!
I'm curious what you might think about $ARLO and it's current movement?
Thanks TB
great video
Can we short the dead cat bounce and one and down charts?
Keep it up. 👍👍
Can I use Stock to Trade on my phone? I work during the day, and I have to be at work by 7, leaving me without access to chart patterns.
We're working on our mobile app. Stay tuned!
I got suckered into an ICO (Unikoin Gold) in 2017 at the top and I got the hopium bug thinking it would turn around. It went to zero. I lost a lot of money in that. Chart looked eerily similar to your last chart.
thanks tim yes i did abli
What about a FGD on a long down trending chart $BLIN ? Never mind you said that was a daily chart .I thought it was the yearly . Thanks for your free videos and the time and effort .
Here's the master of trading Tim Bohen
Mostly what I've been looking to trade are the ever running down (bearish) the dying stocks and the ones that spikes few times here and there. For some reason that's what I though Sykes traded.
just go a dead cat bounce today, granted it did bounce for a 500 dollar profit that i didn't take because i thought it had more potential. never again
MADE MY NOTES AND RECORDED IN SKITCH. SIGNED UP TO SUBSCRIBE
My first stock that I bought when I was 24 years old was a downtrending stock that never recovered.
Awesome content!! The movement of your computer going left to right is very dizzying for a motion sickness person and seems to be for no reason.
Taking lots of notes... my BIGGEST problem is that I'll be in a trade and it will go down... and have an amazing bouce, where I could have made great money, but I'm at a loss because I'm stuck in a trade to early... but I'm learning to cut losses quickly so I won't miss it... but it's difficult with PDT rules cause then I justed wasted a trade... but learning that its better to cut losses and live and trade another day.
-serf
How about 1 minute intraday chart?
The long-term downtrending but with rising bottom are potential break outs
not yet, I just got my makbook today now i just need to save up $2000 capital
2019 when i starin trading i got trap on INPX and i lost 600 dls
S/O to idex bag holders, huge downward trending dead cat bounce example
So like CPAH today
I got suckered with MMAT lol ;)
Much love but these would be way better if I could see the chart closely.
🤩
😎👍
yes I was trapped
The trade pattern Tim said to avoid looks like JC Penny stock. company going bankrupt
So what you’re saying is to short these avoidable patterns? Lol
No. In being New to trading, I don't think that's financially a good idea. If i don't get that simple transacting concept, I need to find a new career. 🤦♂️
It will be better not to show this laptop in front while doing the explantions
You don't even show a candlestick pattern??
What patterns? All i can see is a blurry tv