One of the most important things you will ever learn in your journey of becoming a profitable stock trader is recognizing good patterns.
Being able to recognize good patterns is essential to getting the math in your favor. It’s the foundation of how we approach a trade.
What is it that is so important about a pattern?
- The dictionary defines a pattern as something that is repeatable. When you see a clear pattern, you can see what it has done and predict what it could do in the future, if the pattern continues.
- A good pattern will suggest to us a good spot to enter the stock, and a good spot to exit the stock.
Utilize this simple but powerful tool, and it can completely change your ability to be profitable in the stock market.