Day trading chart patterns,best online stock trading motley fool,learning options trading for free - Easy Way

19.06.2015 admin
Today I want to discuss a few different day trading chart patterns that beginners should focus on when they first start out day trading. Fortunately, I met a few professional traders who mentored me and showed me some simple strategies that got me on the right track and more importantly made me understand that profitable trading is not about complex and confusing trading patterns or strategies but about finding simple methods that matched my emotional make up and my risk tolerance.
The most fundamental mistake beginners make is beginning their search for chart patterns using intraday time frame.
The next low risk day trading chart pattern I want to show you is the bullish flag pattern. GOVERNMENT REQUIRED RISK DISCLAIMER: FUTURES & FOREX TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING.ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
Technical intra day trading strategies based on chart patterns are profitable option to trade in this very short-term time frame.
Double tops, bottoms and flag chart patterns are an examples of these profitable chart patterns for daytraders. Apple shares with stock market ticker AAPL are a popular symbol used in intra day strategies today (2012). Here is a typical example of a classic double bottom chart pattern situation that led to a profitable trade.
The price finally broke down from this flag chart pattern and started the second leg of the downtrend move. As you can see, trading classic chart patterns has its validity for intra day strategies as well. There are also strategies using NASDAQ index fund ETFs like PowerShares QQQ during pre-market trading hours or as after hours stock daytrading. The selection of individual strategy for QQQ day trading is then based on time-frame that is used for realization of short-term trades with QQQ index fund. Short term QQQ index trading strategies based on this very short time-frame for single candlestick are often scalping strategies.
This type of daytrading strategy requires high level of attention and sometimes is the preferred strategy for automated stock trading systems.
This is a typical time-frame period for discretionary day traders that use price action for their decisions.


The trading period for daytraders using a 5 to 15 minutes time-frame is typically the first two hours after the stock market opens and the last two hours before the stock market closes. The two charts below show different periods during a trading day for these time-frames. Trading in 10 or 15 minute time-frames allows the use of price action methods, but also chart patterns or candlestick chart patterns ideas on the charts. Day trading strategies using 60-minute streaming stock charts are based on price action, chart patterns or on using some daytrading indicators. Many traders start out with what I call indicator fascination and delve into advanced analysis methods that can confuse them and often times discourage them from continuing trading. So today, I’m going to show you a few basic day trading chart patterns that should get you started on the right track. It’s similar to the triangle pattern but has a slightly wider channel range and typically slopes down a bit more. Notice how low the risk level can be when the bars before the breakout are consolidating and have a tight trading range; these are the type of patterns you want to isolate for day trading. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.
The stock is quite volatile and offers wide trading ranges that can be used for day trading profit opportunities.
The very important point for profitable results of intra day  strategies is to have good trailing stop strategy.
The simple price action accompanied with technical analysis of candlesticks and classic chart patterns offers trading opportunities every trading day.
Systems that trade the QQQ could use some momentum models, news intra-day strategies and also technical trading based on real time streaming stock charts that analyze price action or use some technical intra-day trading indicators for the decisions.
The usage of additional daytrading indicators rise for traders using 10 or 15 minutes time-frame period for QQQ day trading. The daytrading systems that use this type of strategy often expect that the trade can last more than one single day. There are times during a year when daytrading QQQ index ETF shares is influenced by some leading stocks or sector.
When I started out trading I was under the impression that the more difficult trading methods would produce bigger winners or higher probability of winning trades. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.


Even daytrading QQQ options is used by plenty of day traders that want to participate in NASDAQ 100 index movements.
So the short-term traders trading PowerShares QQQ using this time-frame should expect to hold overnight risk of price movement. However, for the most part most financial instruments respond best to daily chart analysis to begin with. In this case the triangle breakout continued upwards momentum and closed near the high of the day. In day trading the profit potential is limited because the market is only open for a limited amount of time. You have to analyze the broader NASDAQ 100 index fund situation to know the preferred trading direction for traders and investors that use larger time frames. I would use a simple MOC (market on close) order to liquidate the position at the end of the day. Flags are congestion patterns that tend to explode with good momentum once the congestion phase comes to an end. Unfortunately, day trading does not provide opportunity for huge profits because you are limited to how much time your position has to develop. You need to maximize your profit potential by picking simple trading patterns that make sense to you. The trading period is typically one or two hours after the stock market open when the volatility of the market is highest. I want to wait for the initial breakout to occur so that I can day trade if the stock continues momentum after the breakout. What I like about triangles is the inherently limited risk due to lack of volatility while the pattern is setting up. Usually after a tight symmetrical triangle, the stock is very wound up and is ready for strong momentum that should last 2 to 5 days. This is one of the reasons why triangles are good low risk high reward patterns for beginners.



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