Fundamental analysts look at a company’s earnings, balance sheet,
statement of cash flows, valuation metrics, important ratios, and
projected growth rates, among many other things. They then compare
these numbers to those of the company’s peers, but even then, they’re
not finished. No, instead, they have to learn everything they can
about the stock by reading reports, keeping abreast of the news,
etc., to have proper insight into why the stock may be under- or
over-valued compared to industry peers, and whether these valuations
are justified. It’s a lot of work.
But what if I told you that all of this information could be easily
distilled by one statistic alone? It’s the simplest statistic of all:
the stock’s price.
But you can’t just look at the stock’s current price. No, you need to
look at what the stock has done over a period of time; its opening,
high, low, and closing prices for each day. Luckily, all of this
information can be easily comprehended graphically with candlesticks
on charts — and these charts contain all of the information you’ll
ever need… All of the information fundamental analysts are looking
for is reflected in the stock’s price information — you just have to
know how to read it properly.
In this episode, you will learn:
- Three of the most important stock-chart patterns and how you can
recognize them, making big profits in the process.
- Which chart formation predicted 7,250% gains for Walmart back in
1979, and 152% gains for Microsoft in 1990.
- How to differentiate a bullish double bottom from a bearish double
top.
- How you can use bearish breakout symbols to make money in a down
market.
We also show you several graphical examples in this episode, with
real-life charts demonstrating the pattern formations. We include one
big winner from our Portfolio Crafter service that was selected on
the basis of its chart pattern.
Both fundamental and technical analysis are important, but to
chartists, fundamental analysis is redundant. If you can get all the
information you need to know about a stock — whether it’s going up
or down — from the chart, why bother spending hours and hours
analyzing an individual company to see if it’s a good buy? In that
same time, you could scan the charts of dozens, maybe even hundreds
of stocks. There are numerous chart patterns that predict breakouts,
but this episode will teach you the basics of three of the most
important ones.
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
Most important chart patterns to recognize
