How Bar Chart Patterns Signal High-probability Trade Setups
Interest-Rates / Learn to Trade Sep 30, 2010 - 01:34 AM GMTBy: EWI
There's a little known joke among the trading community that goes like this: "A trader walks into a bar... pattern: 'Ouch!' "
Fact is, if you don't know what you're doing, price bar analysis can be a bit "painful." Finding a discernable pattern in their grouping can feel like finding a hair in a hay stack.
But if you have the right teacher -- say someone who has used bar pattern analysis for twenty-plus years to signal dramatic moves in some the world's most watched markets -- well, then the discipline is invaluable. And right now, EWI is offering just that, free: the 15-page eCourse Book titled "How To Use Bar Patterns To Spot Trade Set-ups" by EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy.
In this free 15-page resource, Jeffrey Kennedy shows you the top 6 bar patterns from his personal repertoire. He provides each pattern with a definition, illustrations of its form, lessons on its application and how to incorporate it into Elliott wave analysis, and historical examples of its occurrence in major commodity markets.
Take, for instance, the eBook's section on "Popgun" bar chart patterns. Jeffrey defines this configuration as a "two-bar pattern composed of an outside bar preceded by an inside bar." (See chart below.) From its namesake (the old-fashioned cork-and-string toy gun), popguns introduce swift tradable moves ("the cork flying") that are ultimately retraced ("the string pulling the cork back").
For a real-life example, see the September 27 Daily Futures Junctures, where Jeffrey presents this daily chart of December Coffee that clearly identifies a "Popgun" at the May 2010 low.
As for the remaining 5 bar patterns featured in Jeffrey's eBook -- look no further than the complete, free15-page eBook. You can read "How To Use Bar Patterns To Spot Trade Setups" now with an instant, free Club EWI membership.
Best of all is, you can read the entire, 15-page report today at absolutely no cost. You read that right. The "How To Use Bar Patterns To Spot Trade Setups" is available with any free, Club EWI membership.
This article was syndicated by Elliott Wave International and was originally published under the headline A Trader Walks Into A Bar... Pattern: HOP-portunity On Tap. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
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