INSIDE: Learn why chart patterns work in trading

JOIN ME LIVE @ Noon PT / 3pm ET ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [LIVE TRADING SESSION! REGISTER NOW!]( Hello investor In the past emails, I’ve been talking about technical analysis quite a bit. Today, I am going to talk about the psychology behind these chart patterns, so you can understand why they happen… and… how to leverage them better. Okay, let’s start… Generally, there are three groups of traders – the bulls, the bears, and the uncommitted. The bulls are those who already bought calls in the stock. The bears bought puts. And the uncommitted are undecided on which side to enter. Now, imagine that the stock begins to climb up from its support line. The bulls are happy that their trades are turning profitable. But they wish that they bought more call options, so they hope the stock would dip back near the support line. That way, they can buy more shares. On the other hand, the bears are nervous that they make the mistake of buying puts. They pray for the stock to fall back to the support line, so they can sell at break even. This falls to the next group… The uncommitted can be divided into two groups: - Those who realized they sold their calls too soon at the support line, so they wanted to get back in at that level again - Those who never had a position yet but wished that they bought calls at the support line Now, do you see how all four groups want the stock price to fall back to the support line? As soon as the stock falls back to the support line, the bulls and the undecided swoop in to buy shares while the bears sell their shares to get out. Meaning? The stock bounces from the support line. Here’s the key: The more trading occurring near the support line, the more powerful it becomes. If there’s a huge volume coming in at the support line, it could indicate that there is a lot of demand for the stock. What’s more, the longer the stock price trades around the support line (or the resistance line), the more powerful the movement can be. Often, it’s called the accumulation cycle where buyers keep scooping up shares once the stock hits the support line over the few weeks. The same thing happens in the opposite direction with the downtrend. It is important for a trader to understand why patterns work. They are not just lines. There’s a whole lot of psychology behind these patterns, and it will help you understand their reactions to market events. Want to learn trading tips like these? Join my LIVE webclass to learn how professional traders find high-probability setups… and… how TradeAlgo can enhance a retail trader’s trading journey. The next session begins at 12pm PT / 3pm ET. Click below to register: [JOIN US LIVE @ Noon PT / 3pm ET]( * We will attempt to trade in a paper-trading account – not with a real portfolio. No returns are guaranteed. No longer want to receive these emails? [Unsubscribe](. Trade Algo 401 Park Ave S New York, NY 10016, NY 10016