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.
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.
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.
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.
Go
to the TechniTrader
Experienced
Traders go to Best Volume Indicators Training video to learn why volume is as
important as price analysis, and why volume leads price.
Go
to the TechniTrader
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
Go
to the TechniTrader
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.
Go to the TechniTrader
TechniTrader
The Gold Standard in Stock Market Education
Trade
Wisely,
Martha
Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDs with every course.
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