connect-the-dots

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 http://www.simplerstocks.com

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).

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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.

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


Get more of Chris Brecher’s set-ups, market commentary, and daily analysis at Simpler Stocks.

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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