The 4 Top Stock Patterns To Know Before Trading | Swing Trading



what's going on guys it's Ricky with technical solutions I hope that you guys are all having an amazing day and ready to learn something new so I'm going to cover three but also four of the most popular patterns that I like to follow there's a large number of patterns out there and it's something that you're going to want to become familiar with if you're going to want to become a little bit more successful or at least understand kind of the different patterns and what can happen when it comes down to the trends that these series of stocks you know might have to offer and why I Patterson important I mean the easiest way to put it is you know patterns tend to repeat themselves so if you can be able to understand a specific pattern and you know you can see it pretty much forming in a stock that you're potentially interested in because you're aware of that specific pattern and you're familiar with you know what usually happens you're able to take advantage of set opportunities because of that easiest example that I can you know kind of put out there that I think a lot of people can relate when it doesn't come down to investing in the stock market has to be like you know the real estate pattern right so there's the bust right and like how we know the crash of 2008 and then it does that you know ascending pattern I hit its peak and then it hits its you know bust again and then it you know Peaks back down and it starts to curve back up and it built this cup and handle pattern that's the easiest way that I can put it the same thing happens with stocks but there's so many different stock patterns out there I'm going to explain to you and hopefully in a very quick and effective way the top three that I like to use and a fourth one that I hope that can daddy get in the right direction so I'm gonna start sharing my screen I'm using the TD Ameritrade thinkorswim platform and I hope that he has all enjoy what's going on yes so let's get right to it the first one that I want to cover is the ascending uptrend pattern so I think that you're an example of those there's multiple stocks that meet that specific criteria but I think h-i-m X does an amazing job doing that so what's in ascending uptrend pattern it's when a stock continues to show signs of growth but you know as it's growing you know it can hit a peak and then has a sell-off and it always bounces I didn't own kind of ascending support level it's not a kind of horizontal pattern that a lot of us familiar with it's an ascending kind of like upward trend pattern so whatever it is it you want to call it it's a support that is not horizontal it's moving a little bit more at and you know upward trend and yeah that's the easiest way that I can put it so with that pencil if these land right here I would try to understand you know the whole point of buying and selling the stock is to make sure that you're getting it for a good deal and to understand and to hope that you can identify a good potential buyer like where it's going to most likely bottom out at right and then sell for a profit it's very difficult to find the exact bottom price that a stock is going to go to and that's why we have these set indicators like the RSI indicating that it's oversold right here so a potential goodbye it did the same thing when it was oversold here so that's a good you know buy good soil over here and you know they're useful indicators but they're not always 100% and that's what I want to make sure that you guys understand it's never 100% but this is an ascending uptrend pattern if you just want to know that time and the timeframe that I'm using it's the 180-day and for our charge so I would call this reconsider this to be somewhat of a swing trade I see this nice ascending uptrend pattern it's showing you know consisting growth so I wouldn't mind investing a couple you know tens of thousands of dollars into this company because it makes sense you know it's not something that I'm hoping for it's not a penny stock it's a true real pattern and I understand it now that it's writing near the support does that mean that Oh 100% I have to buy one of the things that I focused on with the people that I mentor in the learn plan profit is I use this RSI I'm sorry I use this EMA indicator and the EMA indicator is this blue line that you see that follows here and when the candles are above the blue EMA line it's showing signs of an op trend right it's number one hundred percent but it shows signs of an uptrend and it holds eBook above you know the EMA line right this blue line almost the entire time and then when it crosses below that's when it starts showing signs of a downtrend but prior to that you could see the RSI is starting to decrease and you know the MACD is starting to or you could already see with the MACD that it gave you a signal to sell so there's a lot of things went into that that you should have already known that this was most likely you know way on the overbought side so that's not such a good buy the demand isn't going to be as great therefore the section is going to drive it down that's getting a little bit too much into it but realistically the sending uptrend pattern knowing where you know the support is that we're most likely it's going to bounce and that's why you see these alerts right here so you can see my alert that's it's gonna go off when it goes above 1120 and the reason why is I I mean I like that it's at such a low price right ten dollars and 32 cents but again I want to invest my money and something that is going to grow so the best way to do that is you know who says that this doc you know won't continue to drop right with that being said I'm going to based on previous patterns wait for the break above the 180-day EMA this blue line right here and once it breaks above it then I get that confirmation so right as it breaks above 1120 it's going to be above this blue line right because the blue line right now is right around 10 72 so if I wait till 11:00 1120 I'll given some time for it to consolidate and really start writing above and working well with the EMA and I get that confirmation I can set up my plan on you know okay well I'll buy at 1120 I'll cut my losses at you know 2% or whatever I formulate my stop-loss to B and then I plan to sell at let's say maybe $12 13 or that $14 resistance whatever it is that I formulate that's up to me or up to you but again this is one of the really nice patterns that I think is very easy to understand and look at at the 180-day chart and I use the EMA indicator and then I just draw these little lines if you guys are going to be asking how is it that I draw these lines you just go to the drawing tools right here and it is the trend line tool that I use on the TD Ameritrade thinkorswim platform so let's go ahead and move on over to the second pattern this is going to be more of a horizontal pattern we've covered this multiple times and de as I think it's very popular for this so a horizontal pattern this is what I call it not too sure what the actual terminology is for it but it's very easy to identify the low points any high points if you could see for a number of months DJ's would balance at around $24 and it would peak out at $20 you know it has gone below and it has gone above so it's never 100% but these are known balance areas and known resistance areas again I do it very simple I don't care how low it goes not until it breaks above you know the EMA and you know when it breaks above the EMA we can get that uptrend pattern Peaks out I can sell about $28 because I know that's a resistance and I don't need you know for it I don't need to wait till it breaks below the EMA line to get that confirmation so with that being said the usual margin is from you know 20 from a set price point and it's very easy to you know visualize that you could see that there's a lot of consolidation within a specific price point and you just draw your support and resistance there's I'm pretty conservative so I didn't want to draw it at 30 and I didn't want to draw it at 22 I wanted to draw where it normally bounces at and it's done this with a 1 2 3 4 5 you know 6 7 8 9 10 multiple times right it's a multiple times and it's about consistency focusing on the stocks at UC valuing the patterns that you understand and taking advantage of those opportunities when you know you get that confirmation and again I use the RSI the EMA and then the MACD indicator is from time to time so that is my breakdown on the horizontal pattern very quick breakdown on another somewhat horizontal pattern this is kind of a dip by also due to its earnings but I think it's pretty easy to understand you know within this 180 day chart looking a little bit closer you can see that what it has a known support area right here it has peaked out previously at 17 and also with the resistance at 16 a lot of consolidation happening here at 14 which is previously where I bounced that so what's the confirmation well I want it to be above the 180-day EMA this is the blue line right here so I'm going to zoom in a little bit closer and it is above the 180-day EMA but it's had a previous resistance at around 441 so what I did is okay I see valley and fu ye I'm going to set my alerts like you guys see at 1450 and when I get that confirmation I can take advantage of that set opportunity from you know 1450 to that price point of 16 dollars and that potential for profit is about 10 percent let's say I invest $10,000 that's a thousand dollar return and it tends to be more active when it breaks above this specific price point and it holds above the EMA line very nicely so again whatever you're comfortable with formally and identify a pattern that you understand and then you know making that transition over to taking advantage of those opportunities I think is pretty easy to understand so moving on to the next pattern it is dip buying so dip buying is this is one of these stocks that I think is pretty easy to understand as well so this is si G had an earnings and you see a lot of these during the earnings kind of just like you saw with FB ye this is again kind of a horizontal pattern but with deep eyes as well known support areas that's how I know that most likely it was going to bounce at around $50 again it's never 100% at a set price but you can kind of get an understanding of where it most likely will bounce once you get that confirmation as you guys can see it's above the 180-day MA and it's holding very well each and every single day doesn't mean 100% that it's going to know if we get a little bit closer you guys are going to see that there's some form of or resistance at about $55 that's why I have my alert set there I want to make sure that I you know take advantage of set opportunities when they are active I don't just want my money sitting there and you know not really doing much for me I want to make sure that I can go from like you know 55 to 60 take advantage of that 10% potential and then move on over to the next stock with and you know one week max and that's really just it how to dip I had its earnings make sure that you understand the catalyst on what drove the price down that is not going bankrupt or anything very negative that can overall to kind of this truck the actual pattern or the company within itself again that's getting a little bit too much into it sorry about that and let's go ahead and do another kind of dip buy again earnings I love earnings we talked about in numerous times wait I don't like holding during earnings I like waiting for the cell ops previous support as you guys could see $300 is this Tesla multi-billion dollar company previous support 300 you guys could see that it holds very well about 300 if you guys are part of the mentorship group this is one that we covered time after time it did a double bottom pattern so it bounced here it highs this is when the roadster came out and acted as a positive catalyst drove the price back down bounce again at $300 and did that double bottom perfect entry and were able to take advantage of that opportunity I do want to give a shout-out to all the people that are part of my learn plan profit lesson library that were able to identify this pattern in take advantage of it very simple pattern very simple trend you wait for the confirmation above the 180 day EMA and you know covered profits wherever it is that you want to some people covered at around 320 some are still holding and because it is showing some form of a peak just make sure that you become familiar with each specific indicator you use and that's something that we cover in the lesson library if you want to understand you know the EMA line our side the MACD and all that good stuff just you know you can have an understanding like I do when it comes down to investing in these stocks and then the last thing that I wanted to cover was all the resistance new support with that being said there was one stock that I wanted to cover let's see if I can actually pull it up and this is it it is di bode the thing that I love about this one is that if you guys could see how the previous resistance at $28.00 do you see how it struggled to break above 2800 to pull back consolidate around 28 and then when it broke above it it has of about 35 and then how to sell off so this isn't 100% but because this was an older resistance usually old resistance levels become new support levels you know places where they usually bounce at so with that being said it's showing some form of consolidation right here at around $28 now all I'm waiting for is for the confirmation and the break about $29 and then I can revisit the IOD and see hey you know is it really writing above the EMA like it's done it before and if so it offers great opportunity from loads of $28 to highs of let's say you know even on the low on $34 that's 21% potential so even if it takes me one month I have $10,000 getting the 21 percent right 21 percent return that's $2,100 with me not really having to do anything just dedicating my due diligence into stocks that are quality over quantity I think that's the beautiful thing about swing trading and investing in the stock market when you do it right and when you understand what you're what you're investing in is you know if you do it right and you do it effectively and you provide that structure like we do you know in our course then you know it's much easier to be successful when you have a full understanding of the mechanics fundamentals and the different kind of trading techniques that we share with in that lesson library but that's really just it guys so I hope that you guys learned something new I hope I didn't speak too quickly and if you guys have any questions you guys know how to reach out to me feel free to go on over to my if you guys haven't already YouTube channel we would love to be a part of your success we are a little bit over 80,000 subscribers hopefully this video doesn't play ok there we go yeah we have a little bit over 81,000 so thank you guys again for that we do upload daily videos both on investing in the stock market cooked currency teaching people how to trade how I buy and resell you know cars I have an alpha 7 GTR I have a bmw m3 that's 640 horsepower I have you know I buy and resell motorcycles I bought and resold my McLaren my audio a series of different things and I own a series of properties and I actually teach that all in the course if you guys aren't a part of it already so we'd love to be a part of your success until you guys get time the second link in the description will guide you on over to our free Facebook group for technical solutions we have over 61,000 members altogether we have over 65,000 members with all the networking platforms and then whenever you guys get the chance you guys can click either the first link in this description for the youtube video or you can click on right here and this will take you on over to my lesson library it teaches you and shows you a little bit more of like you know what the course has to offer and then a quick little video will play here we'll go ahead and pause that real quick but you guys can navigate through the website and learn a little bit more about what it is that we do our success stories and what to expect when purchasing the course and me working with you on a one-on-one basis and speaking to you I you know Monday through Friday on a daily basis as well so thank you guys again for all your time I hope that you just learn something new and you guys are motivated to kind of get started in investing in a new market do you have any tips or tricks that you guys want to share for all the people that are going to be watching this video please feel free to do it in the comments and I'm sure you know you can have a positive impact in someone else's life as well so continue working hard continue following your dreams let your passion be with jobs in your success and like always guys let's make sure that we in the year I don't agree now take it easy I met mine I have a construe far do you detect something different if you look

50 thoughts on “The 4 Top Stock Patterns To Know Before Trading | Swing Trading

  1. I need your help ricky I am really struggling to predict what is going on in the markets when trading forex

  2. WHYYYYY! I feel like Cypher on The Matrix now. All I see are up trends or dip buys. This video has been the most helpful for a break through to start paper trading for me! Time to see more pattern videos from Ricky!

  3. forex trading is tax free in UK ? basically what are you doing is called spread betting? As far as i know it is tax free , but i dont know the difference between a spread betting account and other accounts or different types of trading CFD , currency , stocks etc . SO basically you are trading stocks and should be categorised at spread betting right?

  4. im 14. im paper trading. id rather screw up now and learn from it and then have an advantage when i have larger amounts of money

  5. Thanks for the great videos! But I'm a bit confused here, you keep referring to the ''180 days EMA'', the blue line, but in fact it seems to be a 15 days EMA, isn't it?

  6. Hey! Ricky I want to purchase your course but I just want to confirm that is I only do crypto trading and Will I be able to do successful trade in Crypto

  7. @Roma is that your extreme sport ? I use GOM and watch stuff anywhere from 2x to 3x I use VLC for anything faster than that because VLC [processes] the audio better at fast speeds

  8. Had a fact check on this whole video, out of everything he predicted, 1 made it. For whoever is watching this. LOL

  9. Simple is Genius. You’re a Genius. You make it look so easy. Plus your fast talk style fits my ADHD mind. Thanks. 😀

  10. Ffs man, cant hear what you say, and then you put some loud ass outro in the end. Pay satention at your volume levels of flat them out.

  11. 5:15 so why not buy at 10.72.. did u use some other analysis..? because wouldn't it still follow the upward triangle pattern to buy at 10.72 and be at or above the ema as well.. my point being 10.72 is a long way from 11.20.. imo good 11.20 is a good profit to take if u can enter at 10.72 – signed a newb

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