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.


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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