Connecting The Dots

When I do chart analysis I like to keep things simple. What do I mean? I find myself relying on patterns when I can “connect the dots” on trend-lines as much as possible. I have found that one of the biggest mistakes a new trader makes is drawing too many trend-lines, and not finding enough “points of reference.” The more times a trend-line can be touched, the more significant. This comes into play in many of the patterns I have discussed in my paid classes, and on the free live classes on

I have mentioned ledge trades before in this blog, but I love to use this practice for bull and bear flags. Here is a great bull flag in Regeneron (REGN).


Note how many times a trend-line touches the tops of the previous move.

Here is another one. Remember the more times the trend-line is touched, the more significant.


Remember the key is to buy, or short on the breakout. Don’t anticipate!

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Chris Brecher

Chris Brecher Stock Vice President

Chris Brecher grew up in Jacksonville, Florida. Though he went to college for Paleontology and Marketing, he settled for being a Stock Broker. In watching the brokers in his office lose every time by taking shots in options, Chris wanted to find out who was making money on the other side.

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