Trading concepts can be applied across many markets
Question: Can you spot any familiar price action/ chart patterns in these two charts?
INTC weekly chart
AVGO weekly chart
Recurring chart patterns with high probability outcomes
First chart: Intel Corporation (INTC)
- Head and shoulders pattern with right shoulder predicted by equidistant channel.
- These concepts of A) potential bearish reversal and B) equidistant channel were previously discussed here and here.
- Head and shoulders have near-perfect symmetries that are easy to detect.
- Patterns on weekly charts are considered significant and would be keenly followed by big players.
- The pattern is confirmed when ‘neckline’ is broken.
Second chart: Avago Technologies (AVGO)
- This stock was discussed during BP class.
- AVGO is a home grown tech company.
- Stock price consolidated for 2 years before breaking out of $40 high.
- Price is now >3x higher at 142 a mere 2 years later.
- We covered the concept of consolidation – breakout in this post.
Challenge to individual traders
Step #1 of your mission is to master a set of skills namely recognising price action, understanding market psychology, evaluating risk – reward and knowing when to commit to action.
Step #2 of your mission – extend your tentacles EVERYWHERE!
Achievement? Acquiring an ‘ATM card’ that has withdrawal limit capped only by your imagination, determination and daring. The rest is up to you.
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
Soh's Twitter account @sohtionghum
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"I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."