Classical Chartist

This blog is about classical chart patterns in stocks. Just because I discuss a chart does not mean I traded it. I will never make trade recommendations, and you should not listen to those who do. We must develop our own style of interpreting and trading chart patterns. Traders have different entry and exit strategies, risk tolerances, and opinions about a chart set-up. Don't worry about what others are doing. Focus on protecting your capital while gaining market experience.

Tuesday, June 23, 2015

Chart analysis of Ford Motor

We discussed last month a possible bearish chart pattern in Ford:

The price target of the 3-month Head & Shoulders Top was met in early June:

So what now? The next chart offers a possible bullish interpretation for Ford:

Remember, this breakout from the channel is only a possibility. Also, channel breakouts are tricky to trade. The stock can decline and stop us out of our position yet stay above the descending upper boundary. When I trade a breakout from a channel, I use a smaller-than-usual position and set a wider stop.

Classical Chartist

Tuesday, June 23, 2015

Chart analysis of Ford Motor

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