In my previous articles, I have defined my Grade A (the best tradable) and Grade B (good tradable) patterns. If you haven’t read them, please click here for article Part A and here for Part B. In this article, I am going to define a few stock patterns that we should try to avoid. These patterns look like they have a real good trend and are usually very tempting to novice traders. However, they fail more often than succeed. These patterns are like teasers from the fisherman (often the big …

Before you enter a stock, be sure to check if it has momentum to move either up or down. Because our trading foundation is based on momentum. Take a look at my mistake today on X.

X was my careless entry today. I entered at 45.06. X showed strong upside in the morning. It went up straight from $44 to $45, and was stopped by the $45 odd number. When I entered, there were two things I failed to analyze:
Firstly,  profit/loss ratio.  Looking down at the potential exit point, it should …

HMSY is another trade I entered today, which I should categorize it as the best tradable pattern. Take a look below:

I like it because it opened flat, and started to consistently moving up, forming a beautiful uptrend pattern until it reached yesterday’s high, which is a resistance level. It corrected at this point, and quickly broke through this level to resume going up. This pattern shows a strong buy signal. Now the question is: where is the potential exit point? Well, the answer is on its previous days’ chart. Let’s …