 What's up everybody is Stas here and in today's video We're going to be talking about three stock market chart patterns that you should know whether you're a beginner an advanced trader or an Intermediate trader slash investor in the stock market and before I get a barrage of questions in the comments section This platform that I'm using here is called think or swim by TD Ameritrade and no this is not a sponsored video guys I'm not getting any kickback for mentioning this on the channel This is really what I use and what I've been using for the past couple of years and for those of you guys that want to follow Along and download it for yourselves. That is what it's called think or swim by TD Ameritrade And it's 100% free of charge So this video is obviously tailored more to the beginners out there And I'm going to be covering three specific stocks that actually have listed here on this piece of paper and talking about the different patterns in those different stocks and then we'll also go into Random stocks here on my watch list that I do have and then we'll try to identify Patterns in those stocks and really go through my thought process when it comes to trying to identify These patterns so if you enjoy this video feel free to hit that like button Consider subscribing if you want to see further content for me and all the community links the StriveSmart Facebook group and the StriveSmart Discord group chat and my Instagram and Twitter all of those are linked down below So with that further ado without wasting any more time, let's get right into it guys So the first pattern that I wanted to talk about today guys is called the up Trending pattern and the uptrending pattern to put it in very brief terms as when a stock is going from a lower price To a higher price over a specified period of time and typically during this period of time that stock Experiences a pullback a correction and sometimes multiple pullbacks and multiple corrections Before continuing to push higher and typically during these pullbacks during these corrections The stock itself holds a higher low in terms of its pattern from the previous and then it recovers And it pushes to a higher high to continue the uptrending pattern And we're going to use PayPal for this example here to really show you what an uptrending pattern is and PayPal ticker symbol PYPL you can see a couple of months ago. It was at a price of $75 per share and ever since PayPal hit a double bottom here Which means it hit a support of 75 and then it hit that support at 75 again before taking off Which is a very bullish move, you know PayPal has taken off and began an uptrending pattern And we can see all the different things that I just mentioned a couple of seconds ago, right? We can see we popped to a higher high at a high of $94 higher from the previous high at about 84 We saw the healthy correction to $88 which was a higher low from the previous low at about $71 and then we continued the uptrend hitting a higher high again a higher low on the pullback and So forth guys and again It's when a stock just goes from a lower price to a higher price with healthy pullbacks And typically during this time period we can use moving averages and simple moving averages these lines that you see here as Indicators to where the trend may be pushing and typically the candlesticks the chart itself Pulls back and holds these moving averages as support levels During the uptrending pattern and PayPal again is a perfect example of this right ever since we saw the double bottom the breakout We've been pulling back for higher lows and holding the moving average support Which is this one the yellow line, which is the 180 SMA over the past couple of months, right? And sometimes we pulled back and we held the 50 SMA, which is this green line But either way the good sign is we're making higher highs and higher lows and holding the moving averages as Supports so ideally guys we kind of want to time these uptrend breakouts and enter into them Strategically right so in this case we talked about the double bottom breakout So let's say we broke out we pulled back and confirmed the higher low from the previous Which we did at $88 and a hold on the moving average, which in this case is the yellow 180 SMA this could have been a perfect entry point, especially if you had a longer term You know six month vision on PayPal. Let's say you thought at the time, you know PayPal was low in terms of its stock price You could have entered in here and let's say you sold out at a higher high as the uptrend continued at $97 for example or as we broke 94 dollar level of resistance. Let's say you sold at $95, you know that could have been a move if we just calculate that very quickly That could have been a move of around seven eight percent And let's say you wanted to hold even longer Another way you can trade an uptrend is pretty much just adding more on every single dip So let's say we started a position at $88. We popped up to 98 dollars We pulled back and we tested the 180 SMA support again We held it at a higher low and we started to pop up at this time. You could be like, okay The uptrend is confirming itself. It's continuing. Let me add a bit more money at $96, right? You could do that as well, but let's say things go sour, right? Let's say the uptrend it's going to break itself. How do I identify that? Well, if it broke the 180 SMA That would be the first Very negative sign that the uptrend it's breaking and especially if we broke the previous low Which in this case is $88. That would be a support after breaking below the 180 SMA in this case at about $92, right? We start to go down and test 89-88 ish dollars that would be the support and in that case if we broke that That would be a clear break of the uptrend and that will turn into another pattern that we'll talk about here in a couple of minutes So the second pattern I want to share with you guys is called the horizontal pattern also known as the horizontal Channel and for this particular example, I'm going to be using Netflix's stock ticker symbol NFLX and the way that I think about a Horizontal channel and I'll give you guys an analogy really quick is it trades between One support and one resistance and it tests those supports and resistance levels multiple times Confirming the support and getting rejected at the resistance Multiple different times both ways and the analogy that I'm thinking of here is called the ping ball Analogy you guys know that game ping ball where it kind of stays in between these two walls that's kind of like Netflix's stock as you guys can see here and horizontal patterns in general right and in this case the support is $340 and the resistance is $380 and pretty much over the span of the past Four months up until Netflix announced earnings a couple of weeks ago This stock has been trading in this horizontal channel again support 340 380 resistance and like I said these levels need to be tested multiple times They need to be bounced on in terms of the support and rejected at in terms of the resistance Multiple different times which Netflix has done that and you can see the first test was again Towards the beginning actually it was more towards the beginning of February at $340 before testing it again at 340 and popping up to 380 getting rejected there pulling back testing 340 again bouncing on it popping up testing 380 yet again getting Rejected 380 again getting rejected pulling back testing 340 on three separate occasions bouncing on every one of those occasions Before testing 380 yet again guys and then we pulled back we held 340 very briefly, but the earnings report brought us below that channel and that ultimately broke the Horizontal pattern so you guys can pretty much it's kind of self-explanatory And you can pretty much see for yourselves that this was trading in between 340 and 380 over the span of a couple of months And this is what a horizontal pattern looks like so the awesome thing about Horizontal channels in general and horizontal patterns is once the pattern breaks We can actually identify a trend from whichever way that the pattern breaks itself And you guys can see here Netflix is no longer trading in this horizontal channel right ever since we broke that support at 340 that is a pretty bearish Breakdown right that's a bearish break because we broke a support that's been very strong over the past couple of Months and ever since then guys we've been falling lower and lower until we found a bottom here at 306 And now to get back into this horizontal channel potentially We actually have to break above the 340 old support which is now a new resistance and from there We may be trading in that channel again But let's say on the flip side now to identify a bullish trend You know if we were to break out of the resistance of this channel at 380 And let's say we started to go to three ninety four hundred dollars again in terms of Netflix stock That would be a very bullish trend reversal and we may be up trending from there that's pretty much one way that an uptrend can start is when we break out of a Horizontal channel and the next trend we're going to talk about can start if we break below the support of the channel And you guys can see again That is what Netflix stock has done and let's talk about this third pattern and I'm sure you guys can guess it But let's get right into it So the third and final pattern and again I'm sure a lot of you guys already guessed it is called the Down-trending pattern and in brief terms This is when a stock is going from a higher price to a lower price over a specified period of time And honestly, it's the exact opposite of an up-trending pattern right again An up-trending pattern is when a stock's making higher highs and higher lows Well a down-trending pattern is when a stock is making lower lows and Lower highs and you guys can see from our example in JC penny ticker symbol JCP this stock over the past six months has been doing exactly that It's been making a lower lows right the first low is at a dollar twenty second low is at 95 cents and it's been making lower highs right the high here at 146 the next highs at about 134 we tried to break out and start an up-trend But ultimately we started to get hammered back down We made a lower low at 81 cents, which again is a lower low from 95 cents and we actually just made another lower low at 76 cents, which is lower than 82 cents and you guys can see the highs at this point They're getting lower and lower each time the high at 117 the previous was at 123 The previous was 135 the previous was 191 and you guys can see before that was a dollar 45 And if we go a bit out further here on the chart the one year one day You guys can see it even better lower lows and lower highs over the past year This is the premise of a downwards Trending pattern and remember how an uptrend pattern the moving averages the simple moving averages they acted as Support levels well with down-trending patterns guys these moving averages. They're acting as Resistance levels right we struggle to break out of them We get rejected and typically fall lower and that again you can see with JC penny stock here ticker ticker symbol JCP you can see the 180 SMA this yellow line. It's been acting as a resistance. We struggled to break out of it We got rejected and we pushed lower right we broke out of it a bit But ultimately we broke below it again, and it's been acting as a resistance over the past couple of months And typically with down-trending patterns guys you can play Options with these you can do put options or you can short particular stocks You know as they get higher and as they get rejected by the moving averages and continue their down trends And if you're a beginner you might not want to mess with that stuff quite yet You might want to just trade straight on stocks But hey you do what you want if you do the research and you understand what you're getting into go for it guys So that is the third pattern. It's the down trend So now let's very quickly talk about a couple of different stocks at random and try to identify some trends in those stocks So J&J here you guys can clearly see this one's kind of a roller coaster, right? We hit $148 we dumped all the way to 121 and during this time period. This was a down trend Right this was a downtrend the 50 SMA was acting as a resistance We were making lower lows and we were making lower highs for a certain period of time And then once we broke that 50 SMA resistance We started to hold it as a new support and we started to make higher lows and higher highs We started to uptrend from that point in time all the way up until now We got the litigation issues with Johnson and Johnson and now we broke this 180 SMA support And since then guys since that one event that brought us below this support We've been down trending in J&J right? We've been making lower lows as you guys can see low here at 132 The previous was at 133 and so on and we've been making lower highs with the 50 SMA acting as a Resistance and what would I look for here for a breakout? Well, I would want to see the candlesticks break above the green line Which is the 50 SMA and from there if we pulled back held a higher low That can very well be the start of an uptrend in Johnson and Johnson another one I want to talk about is Tesla ticker symbol T SLA take a look here guys from $380 all the way down to 176 This was a point in time where the price went from a higher price to a lower price And we were down trending right during this time period You can clearly see lower lows lower highs the 180 SMA and the 50 SMA both of those have been acting as Resistance levels and now we've actually been breaking out You know as we've gotten some positive news with Tesla in terms of their delivery numbers in the past couple of weeks Tesla stock has slowly started to shift right? We're breaking out of the resistance moving averages here and now we're holding them as new supports We're making higher lows. We're making higher highs. This is looking like it's continuing or rather starting an uptrend pattern here But now take a look at this We got the pullback from a poor earnings report yesterday poor EPS numbers and that brought the stock all the way down We're still technically trading at a higher low right now So if the 180 SMA holds as a support this could be a dip by opportunity in Tesla and of course you're watching it in the future So if you want to come back and see what happened, you know here you can see it But let's say we actually break that that could be the start of a downtrend Right instead of the continuation of the uptrend if we hold it another good one here is Apple ticker symbol AAPL You guys can see from the month of November to the month of you know January We were clearly downtrending in Apple the 50 SMA the 180 SMA those were resistances. We were making lower lows We were making lower highs and then once we started to break above that 50 SMA We broke above the 180 SMA We were making higher lows and higher highs We started the uptrend and we broke out from 142 all the way up to 215 and then notice how once we broke that support of the moving average which again is very important to watch these moving Averages, you know once we broke that that's where we started the downtrend, right? We started to get rejected by the 50 SMA We were pushing a lower lows lower highs all of that stuff and you can see we found another bottom at 172 And now we're starting to uptrend So that is it really for you know the three main chart patterns the horizontal pattern the uptrend the downtrend These are very important for everybody out there to have a good grasp on when you're trading when you're doing your technical analysis And when you're thinking about making long-term investments I believe it's a very good idea to know how to do technicals even for long-term investments guys So if you enjoyed this video feel free to go down below and hit that like button Let me know down below in the comment section what you thought about it And if it helped you and if you have any questions and consider subscribing and hit that notification bell join the StriveSmart Discord a group chat and the StriveSmart Facebook group as well as follow me on Instagram and Twitter all of those are linked down below So I appreciate all you guys watching. I'll catch you all in the next video. Peace out