One Of My Favorite Patterns – “The Ledge Trade”

I have had more positive feedback about a particular chart pattern I have named the “Ledge Trade”. This is a bearish continuation pattern, that has an identifiable measuring objective. A ledge trade takes place after an initial down move, then consolidates into a pattern that a trend line can be drawn along the price bottoms horizontally. Once the price breaks down, it’s like “falling off a ledge”. Usually the chart falls down by the amount of the previous sell off. As seen in this chart, the /NKD ledge trade worked beautifully.

ledge-trade-chart

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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