7. Day Trading and Investing: Charting Patterns Lesson 1

[propriodaroma]

What does it mean when you say buyers and sellers are trying to break through price levels during support or resistance? Why would a seller try of a stock try to break through to a lower price?

[freeSCALPINGindicato]

SCAPING is the king... with right tool it is so easy

[Cresnei]

hello Dave, Im a young trader and im taking your lessons as my basis for technical analysis, it would be great if you could help me showing where can i find in your videos the definitions or aplications of technical indicators.. thanks for your videos..

Best trades to you, Santiago.

[LitheInvestments]

Double tops & double bottoms are good speculative plays, add to the position if the theory holds and this can be profitable.

[FreeFOREXautoROBOT]

Great video,informative. But I prefer Free EA

[zhinghur]

Great video. Awesome. Thanks a tonne for sharing !!!

[williamgen28]

Hello May I ask what time frame is this?

[PedroMiguelAntunes]

Not supposed to buy when it going down and sell when it set up?

[stevenperry209]

WAIT...he said there would be sell offs in both cases?

[LordoftheJamesClan]

i never would have guess that that was what was happening on my own w/ the double top/bottom

[graveyard909]

To be frankly, these videos doesn't help and make worse when people believe your theories. Because these theories were all PAST, not future. If you want to teach or help new investors, tell them with the half chart, which means, the chart that doesn't appear to be double top or double bottom, still in progress and take action, BUY or SELL? NOT just speak from chart, but do it LIVE, then you are real, or you are just lame.

[Joebrown1111]

I think David is doing a great job. We shouldn't criticize with his work. It did help me a lot as a novice trader when I started trading few years ago. Thanks David for all the free info. Keep up the good work.

[ayapsone]

What are u talking about ....this fundamentals.You do ur practice or try real after learning. Atleast contribute information, dont be dump.

[darthstarwarsgeek]

So does the double top or bottom establish Resistance and Support or is it already factored into the market? Also why just two runs, why wouldn't buyers make a third, forth or fifth attempt to break through the Resistance level (or is a double just a strong indicator)?

[navesele]

What you are missing is that there are no absolute indicators that will tell you exactly what you want to know. But a double top, or bottom, indicates stronger resistance or support, than one top or bottom. Ideally we want to avoid trying to pick a top, so there is no such thing as "a single bottom strategy". The more times the price touches a support or a resistance level, the more confident we are whether it is a support/resistance level or a retrace from the previous movements.

[darthstarwarsgeek]

Yeah I'm now getting it. There are no certainty in trading whatsoever, just degrees of probability. Thanks for taking the time to answer my Qs.

[navesele]

Well, again, there is no certainty in how much you are going to win. The only two things you totally have control over are 1) the entry point of your trade and 2) risk management, where your protective stop is. You must know where your protective stop must be and what your profit target is BEFORE you enter the trade. So these are all known things. What is unknown is the amount of profit. But risk and potential loss are known.

[darthstarwarsgeek]

I was referring to certainty in trend forecasting.

You make some very good points, thanks again for your intelligent and thought out responses.

[wa7sh999]

great video

[Shawn1440936]

So, with a double bottom, sellers are short-selling to drive the price down? and with a double-top buyers are trying to drive the price higher!? What is this logic?

[navesele]

Sellers do not short-sell TO drive a price down. Sellers are trying to get on a down-move of the down trend, or a down-move in the price action. However, there is something called "self fulfilling prophecy", when many traders, by doing the same thing, move the price one or the other direction by sheer volume.

[lucidtraveler]

Hi Dave, very good lessons, well explained.

I picked out charts for 2 different stocks and an index (FXP, DIG, $COMPX) on market close on 11/13 to illustrate this question: they look almost identical!!!! I know they should be somewhat related, but all the time I thought that I could be shorting a fund of Chinese companies (just turn the FXP chart upside down) or buying into oil and gas; but compare the charts, they are practicallly identical! How can it be?

[GreenDukey]

Chart patterns... BOING

[Ghola4life]

Good job sir!

[InformedTrades]

thanks for the comment I am glad you liked it. Best Regards, Dave

[visulube]

Hi Dave

Your videos are great, you are a fabulous teacher, which in turn reflects your knowledge of this subject.

Keep it up !!

[InformedTrades]

Hi visulube, Thanks for the comment I am glad you like the videos and are finding them useful. Best Regards, Dave

[eshmaloner]

I am a little confused how we should differentiate a double top/bottom from stocks trading in a range. In your previous example of Nike, there seemed to be a triple top and a triple bottom, yet you implied that a good trade would be to buy the triple bottom (as it took off from there). Would you wait to see if it bounced a little from that triple bottom before entering the position?

[InformedTrades]

Hi eshmaloner,  Double/triple tops/bottoms can form in a range, however I think most would agree that they are at their most potent when they are at the top or bottom of a trend. The method outlined in the video does wait for the bounce off of the support or resistance line before entering a trade. How aggressive one is there is really a matter of preference. Best Regards, Dave

[Doodsome]

@InformedTrades

Does that mean that there can be a tripple top chart pattern at the end of the trend? how do I apply the double top theory in that case?

[marnold092]

What timeframe are these types of patterns most visible?

[InformedTrades]

Hi Marnold092, Thanks for the comment. Patterns such as these are visible on pretty much every time frame. The longer the time frame however the more relevant most traders consider the pattern. Best Regards, Dave

[cesarciro24]

Gracias por enseñarnos de una manera facil, sencilla y agradable los fundamentos del Analisis Tecnico.

[InformedTrades]

Hola cesarciro24, Gracias por el comentario me alegro le gusta el videos. Best Regards, Dave

[preetamgawade]

I appreciate your help and efforts ... This is quality educaton of concepts & it is easy to understand for beginners ... Keep it up buddy !! kudos to u !!

Keep rocking !!

[InformedTrades]

Thanks prettamgawade glad you are enjoying it and we will keep rocking. Best Regards, Dave

[meta2040]

thx for you response and effort :)

i have watched all your vedios and all i can say that i really apperciate every single word you have wroten in your stocks analysis

lessons which i found them the best and easier

ways to learn.

again .. thx and god blees you

((excuse my poor english- one of your fans from saudi arabia-jeddah city))

[InformedTrades]

Hi Meta2040, Thanks for the comment I am glad you like the videos and are learning from them. When I was working in FX I used to visit the kingdom regularly and think Jeddah is a beautiful city. Since I was on business I never got to the beach there but I hear there is some of the best scuba diving in the world there so I hope to be back and have the chance to do that some day. Best Regards, Dave

[SMAThamer]

it's a very imprtant lessons thanks alot

[InformedTrades]

my pleasure thank you for the comment.  Best Regards, Dave

[wapminnin]

amazingly patient and consistent. thanks

[InformedTrades]

glad you liked it and thanks for the comment. Best Regards, Dave

[meta2040]

it would be much better if you mentioned and showed how the voulim is so impotant with the

patterns.

thx alot mr.dave

[InformedTrades]

Hi Meta2040, Thanks for the feedback I will note that for the second versions of the videos.

Best Regards, Dave