Stock charts are simply a graphical illustration of historical price movement. The Stock Bandit uses technical analysis to find the chart patterns that stock charts tend to form, because within chart patterns are evidence of market psychology. Human emotions have tremendous power in the stock market. There is greed of wanting more, fear of missing out, fear of losing more, and general uncertainty. These emotions result in an imbalance of supply and demand and price fluctuations for traders to capture. Technical analysis of stock charts uncovers various chart patterns in price movements, which reflect human emotions. Many agree that we are creatures of habit. As human behavior tends to repeat itself, so do these chart patterns which help to forecast price movements.
The goal is to eliminate emotions from trading, but the astute trader sees profit potential in exploiting the emotional mistakes of others in the market. This is why we rely so heavily on technical analysis of chart patterns.
We want you to be a student of the stock market, as well as chart patterns. To learn and understand chart patterns is to learn about the psychology behind price movements. Familiarity with chart patterns will not only help you follow along with The Bandit Broadcast, but it will help you learn to uncover your own big winners in the market using technical analysis. Below are links to most all of the chart patterns found in The Bandit Broadcast stock pick newsletter.
Screening for Chart Patterns
The Stock Bandit recommends getting a charting program which enables you to build watch lists, draw trend lines, and add indicators with ease. Only with such a program will a trader be able to monitor his trading ideas and learn to effectively anticipate market moves by applying technical analysis to find chart patterns. We use TCNet from Worden Brothers, Inc. each night and on an intraday basis for charting purposes, and you can use the same product. Two levels of service are offered, delayed and real-time. Click below for details.