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, July 14, 2015

Stocks are still range bound. Stay patient. Not trading is a strategy.

Even with the volatility attributed to the ongoing Greek debt problems, China's stock market decline, and other uncertainties, U.S. stocks are trading in a tight range, as they have been throughout 2015:

In this kind of range-bound trading, the higher probability trade is to sell or short strength and buy weakness. Stocks will break out of this range at some point. When the breakout, up or down, occurs, our task is to accept the price action and trade (or not trade) accordingly.

1 comment:

JackJuly 19, 2015 at 2:00 PM
If trading worked at making me money, I would trade. But we are never sure about losses and profits. You have to be just very careful while trading and always keep in mind all trading points.
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