A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern that naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

There are several profitable chart patterns. The simplest and easiest to use are flags and pennant patterns. These patterns are characterized by a clear direction of the price trend, followed by a consolidation and rangebound movement, which is then followed by a resumption of the trend. They are continuation patterns, and forms when the prices of stocks rally sharply.

These patterns are typically found using a manual overview of different technical stock charts. What are the options for online screening for profitable chart patterns and what software for flags and pennant screening should you use?

Read more about the screening for profitable chart patterns like flag and pennant.

Have you ever heard of pattern trading? Who are the participants of this market exchange? Pattern day traders are traders who execute four or more day trades within five business days using the same account.

Day trading refers to buying and then selling or selling short and then buying back the same security on the same day. Intra-day traders are faced every day with the necessity to make quick decisions about the opening and closing of every single intra-day trade. The most profitable intra-day traders use very simple day trading systems.

Check out how to become a profitable pattern day trader.

Every trade you make on the markets should have an exit strategy. In general, in exit strategy is a means of leaving one’s current situation, either after a predetermined objective has been achieved, justifying premises or decision-makers for any given operational planning changed substantially, or as a strategy to mitigate imminent or possible failure.

It’s very important to have your swing trade exit strategy well defined in your trading plan to know how to exit your trade. Only when you exit the trade, that means to sell the shares you bought, does the real money come into your account.

Check out the two main exit strategies in position or swing trading.