Scott's post today re. chart patterns was pretty insightful. And as it happened, the first trade on TNA using the patterns he outlined was a big winner (actually it was the second, because when it failed, I reversed). I spent some time this afternoon going thru several stocks and drawing lines. I came up with 64 flash cards. Some show patterns failing, some show patterns fizzling, some show patterns with big gains. Some don't show any patterns at all. I thought I would include those just as reminders that I should be selective.
I printed them to pdf and they are available for download here. They are all white background and printed with volume, 7 and 17 EMA's and the 15 minute candles. Unfortunately, they are not live shots, so they were all made in EOD context, but its a start. I added a few to this entry for a preview.
I plan on saving intra-day real time snapshots and building another portfolio that I can use for a new flashcard set.
I think I am going to spend the next several days looking for and trading stocks showing these patterns. For exits I am going to try and think of it as a learning experience, giving/allowing myself plenty of time to fine tune my exit strategy.
The patterns definitely change my perspective. I have always approached and studied Scott's entries/exits by focusing on the single candle (what made it special?) or looking at the one or two candles behind it. I moved from this to trying to reconcile/justify the entry/exit using the Q's and 15 minute candles. The patterns definitely broaden the 5 minute context.
I mean, I know this works...
Keep on trading.
Flash Card Examples:
