Most folks just think of investments as things that go up or down (and even then hopefully just up).
But the fact of the matter is, any asset can have a long period of time where it trades in a sideways range, bouncing between a high and low.
Recognizing these ranges from a chart pattern is a good way to find short-term trades. It may not be the big grand slam of catching a major move up or down, but it can give you consistent profits time and again.
- The Only 8 Stocks to Own Today - FREE Research Report
Of the nearly 4,500 publicly traded stocks on the market, only 8 are now trading at an attractive price. These "8 Power Elite" stocks knock it out of the park year after year because they've tapped into the 3 most powerful forces in the global economy. Free Report explains why.
These types of patterns occur in the markets all the time. They’re known as consolidation patterns, and they tend to keep a position from making a major move for a while it’s ready to continue moving in the trend it was moving in before—whether up or down.
That makes them a great way to find profitable future trades, although it may take more time to play out than other chart patterns.