Trading chart pattern is a widely used technique for investment and trading. It is popularly used in many financial instruments like stocks, forex, futures, commodity trading and is also a superb technique for entry and exit in any market conditions – bull, bear or sideway market.

Smart Money with Chart Patterns

Unfamiliar to most people, looking for chart patterns is an excellent method to spot trails of smart money. We will illustrate with STX PO, a premier shipping company in Korea and listed in Singapore Stock Exchange, on how to spot smart money.

Following the general market decline in July and August 2007, STX PO formed a with-the-trend cup pattern lasting 14 days. The cup pattern showed that stock price recovered very quickly after a sell-down. With the handle pattern hovering around cluster of moving averages, it shows that market participants are willing to transact the stock at higher prices, thereby offering clues of substantial strength in this stock. When such price behavior is spotted, the investor or trader is waiting for a signal for prices to move out explosively.

With ‘rade Explosive Chart Patterns’, participants are able to acquire a lifetime investment skill using chart patterns. They will be able to spot trails of smart money, enter and exit their stock selection with precise entry, stop loss and exit levels.

Let’s take a look on executing ‘Explosive Chart Patterns’ strategy on STX PO.

Illustration of STX PO

The confirmation of the cup and handle for STX PO is at $2.20. The combination of moving averages, volume and indicator all point to an explosive chart pattern. If this entry was missed, one can look out for the continuation flag pattern (see attached chart above).

Price further exploded to hit a high of $3.50 on 27 September 2007.

From the explosive cup and handle pattern on 31 Aug 2007, stock price increased by 59% in less than 20 days!

When to get out of the trade? Not yet. At this moment, based on Explosive Chart Pattern rules, there is no signal to get out yet at that moment this advertorial is written!

Not all chart patterns will result in explosive movement!

Likewise, not all cup and handle will result in explosive movement such as the one found in STX PO. To differentiate explosive patterns, we have included an excellent mix of moving averages, volume and indicator to systematically reinforce the recognition of explosive chart pattern. What’s more, investors can also use Shareinvestor TA Scanner to scan for chart pattern effortlessly.

We are conducting an interactive course that is loaded with lots of practical case studies on Singapore Stocks. Go through lessons to learn to identify explosive chart pattern using intraday charts as well as additional market information such as ‘volume at price’.

Best of all, we will provide you a platform that is perfect for this strategy. All participants get free SI Station membership with TA Market Scanner.