TechniTrader Stock Trading "How to Interpret Sideways Candlestick Patterns?"

Here Are Lists of Tips to Identify Sideways Patterns and Their Differences

Most traders do well during Uptrending Markets when there is either Moderately Trending action, Momentum runs, or Velocity runs. However the preponderance of Traders struggle during Sideways Trends. This is true whether the Trader is trading Stocks, Exchange Traded Funds, E-minis, or Options. 

here are hundreds of strategies that have been developed for sideways action, but still Technical and Retail Traders have meager gains or chronic losses during Sideways Market Conditions. The Retail Traders Market Participant Group includes those who have learned how to trade the Stock Market from home.

This is an important trend to master as the markets now trend sideways more than 60% of the time, often in candlestick patterns that are not recognized as sideways.

Here is a list of tips to help with identifying Sideways Candlestick Patterns:

 1. Bottoming Formations are predominantly sideways.


 2. Topping Formations are also mostly sideways.

 3. Platform Market Conditions are lengthy sideways action in a tight formation that whipsaws Swing and Day Traders out of potentially good entries.

 4. Consolidations are common when Professional Traders are actively trading.

 5. Compression Patterns are frequently over looked by Traders.

 6. Trading Ranges are also sideways, but are often mistaken for Momentum runs.

Beginners go to watch the Candlestick Patterns Webinar, to learn which patterns work all the time and how many patterns you really need to learn.

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Here is a list of tips for interpreting Sideways Candlestick Patterns differences:

 1. Amplitude of Oscillation. All sideways action is a form of Oscillation

 2. Magnitude of individual candlestick size.

 3. Dimension of the typical time duration of the sideways pattern based on magnitude and amplitude.

 4. Typical location of that particular sideways pattern whether it forms in the short term, intermediate term, or long term trend.

 5. Trendline patterns that the sideways patterns create.

 6. They are the most reliable candlestick patterns for Day, Swing, or Position Trading entries.

 7. The type of Support or Resistance that sideways patterns create which defines the risk of the trade.

 8. The amount of acceleration, velocity, or the price action as that particular sideways pattern completes.

 9. The direction the stock will take as it breaks out of that particular sideways candlestick pattern.

 10. The indicators to use for that particular sideways action for optimal entries and exits and maximum profit gain potential. Stock Leading Indicators are excellent for confirmation of best entries.

Experienced Traders go watch the Stock Leading Indicators webinar to learn the 5 Essential Stock Indicators, Price vs Quantity, and indicators for finding Dark Pools & High Frequency Traders.



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Below is a chart example in using a weekly view showing the type of analysis that all Traders need to be capable of doing within seconds of seeing a chart.

chart example of using a weekly view with a short term bottom formation - technitrader



This chart has a short term Bottom Formation that is sideways called a “Basing Bottom” which is one of the newer bottoms that form on the Short Term Trend. The compression out of this bottom creates moderate momentum. Compressions occur after each run of an average of 3 days. Candlestick pattern entries are based on resting day action with a “Shift of Sentiment™” shown in the Balance of Power indicator in the bottom chart window. The Volume indicator defines High Frequency Trading activity by the length of the bars, however Professional Traders are in control of price in this chart example.

Experienced Traders go watch webinar to learn more about the Balance of Power indicator which tracks large lots versus small lot activity.

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Experienced Traders go to Best Volume Indicators Training video to learn why volume is as important as price analysis, and why volume leads price.


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Basing Bottoms often have compression patterns that follow the completion of the base bottom. This kind of bottom has short-term momentum or velocity runs, that pause and rest at or below weak resistance out of that bottom.


Go watch Basics of the Stock Market for Beginners 
12 Webinar Lessons

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Example - Lesson 10

Stock Indicators tell What is Going on Between Buyers and Sellers, Who is Controlling Price, and the Stocks that are likely to Move with Strong Gains Quickly. 

Experienced Traders go to the Learning Center with training Libraries for TC2000, StockCharts.com, and MetaStock Users in the Learning Center.
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TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

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