Markert Rebellion

Chart patterns: a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past.

Chart patterns are nothing more than a visual representation of price and volume action.

institutional investors} funds are like proverbial elephant in the bathtub they can’t hide when they jump in and out , so you can’t miss when you´re watching the charts.

Let’s talk about three basic chart patterns over the stock market plays 90% of all patterns.

1.CUP WITH HANDLE.

💚 it’s resemble cup tea where the prior uptrend should go above 30%.

1.prior uptrend typically happens when the overall market is moving higher especially indices Nasdaq and s&p 500 .

2.When that uptrend starts to slip into correction, even the top CANSLIM stocks will likely pullback and starting forming the new base.

3.When that happens SAVVY investors who got in early on that uptrend start to cash in their gain. probably see 20—-30% profit taking rule kick in around that time.

B: BASE DEPTH

1.The depth of the base measured from the peak on the left side of the cup to the lowest point.

2.The bottom should be between 15%—30% , but in a severe bear market the depth is only 20% all else being equal the stock with 20% base depth could be forming a stronger base.

C.BASE LENGTH.

1.Minimum length for a cup with handle is 7 weeks and some can last longer several month’s or years.

2.5 weeks cup with handle always fail.

3.The length of a cup with handle is usually affected by the length of the general market correction.

NB: Will continoue tommorrow ending here because i wanted to be like an introduction .