IF YOU CAN’T HELP LOOKING AT THE CHART PATTERNS THEN YOU’RE GOING TO BE A GOOD TECHNICAL TRADER

It’s fun to look at chart patterns and trends and imagine what trades you could have made. In technical trading we’re going to learn rules about price patterns and apply them in the same way to all of the stock and futures markets. Before you move on to the next lesson and see these rules, think about what you already know about price patterns.

Can You Apply the Same Buy-Sell Principles to All Stocks?

• Can you write down the rules you’ve used to buy and sell a stock, any
  stock? Can you write down the rules for when you would have exited the
  long positions in the previous stock charts? If so, you’re a systematic
  trader.
• When you look at a chart, do you see it in terms of continuous price moves?
  Do you look at the highs and lows of price swings? Do you draw conclusions,
  make up rules, and imagine that you can capture large profits?

Looking at a historic chart is frustrating and deceiving. It makes you think that you could have profited from the price moves. It’s much harder when you can’t see the future. However, high-tech display equipment lets you see the past price movement of any stock. It has brought many new traders to the table who think they can profit from future price moves because they can see the past.