Chart patterns point traders to high probability trading opportunities by allowing them to accurately measure risk and reward. Chart patterns also capture crowd emotions and expose the emotional people that make pricing errors. But there are only a handful of easily recognizable chart patterns that appear with frequency. To find these patterns, we use classical chart analysis to improve our chances of successfully executing trades.
This presentation starts with a review of classical chart patterns. Typically, textbook chart patterns are easy to work with. But this workbook challenges you to identify the pattern early, set realistic price targets, define the risk, and then decide in advance how you would trade the opportunity. Many of the workbook examples included are actual trades and show the actual chart on the date Daryl Guppy recognized the pattern. Put your pattern recognition skills to the test with challenging workbook examples, which include complete answers and explanatory analysis.
Additionally, you will learn how to:
- Test your pattern recognition skills
- Define trade risk and reward
- Set accurate entry points, stop loss levels, and reward targets
- Compare your answers with the solutions as the actual trades had developed
- Gain the necessary confidence to trade real patterns rather than perfect textbook examples
Use Snapshot trading by Daryl Guppy as an additional reference