KOG - BASIC CHART PATTERNS

This is our first post in a series of posts about chart patterns. Followers of KOG will know we are technical traders so we are always looking out for candlestick and chart patterns as part of our trading plans and analyses.

These are what we feel the 6 most common and basic chart patterns that you will find almost daily on the smaller time frames. During the course of this series we will look at each and everyone in more detail and give you live examples of how they work.

TIP: When trading chart patterns its always best to wait for the neckline of the pattern to break, this confirms the movement in the chosen direction. Chart patters also work best at key levels of support and resistance and at the top or bottom of trends. For example, if you see the price is at the top of the trend and a Head and Shoulders pattern is forming, this is the first sign of a reversal on price.

Below is a live example of one of our favorite chart patterns, the Adam and Eve. You can see how we identified the pattern and looked for the neckline to break which confirmed the movement in the direction we wanted.

Hope this helps traders.

As always, trade safe.

KOG