Cup Patterns
Advantages: Easy to Spot, Best Trades,
Highest Probability of Followthrough
Disadvantages: Need to route order quickly for a fill, competitive trading
- What to look for: Scanning for cups
that take the stock over previous
days’ high.
Enter .3 to .5 over whole number
- above previous days’ high.
How to Use Time & Sales: Ratio of
buyers/sellers and tape speed
•Consolidation Breakouts
Advantages: Clearly defined entry & stop
loss
Disadvantages: Can have false breakouts to new highs, bad for choppy markets
What to look for: Volume on the
breakout, ascending/descending
triangles. These can occur on
bounce trades as well, eg ascending
triangle after a sharp drop, buy into
fibo bounce range.
How to Use Time & Sales: Look for
‘piggyback trades’, eg the crowd
piles into it once the ‘dam has burst’
to the breakout level.
Mastering Day Trading Chart Breakouts
PRO CHART PATTERNS
EVERY TRADER NEEDS TO KNOW
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