A TRADER WITH 20 YEARS OF EXPERIENCE TOLD ME SOMETHING I NEVER FORGOT
“Charts tell the same four stories over and over
Most traders are too busy looking for new ones”
Story 1 - Head & Shoulders
Three peaks. Middle tallest. Neckline breaks
Bullish version: inverse. Same logic flipped
Translation: trend is exhausted. Reverse
Story 2 - M and W
Two equal highs or two equal lows
Second test fails or holds.
Translation: level was defended. Follow the defender
Story 3 - Flag
Sharp move followed by tight consolidation
Translation: trend is resting. It continues
Story 4 - Triangle
Higher lows or lower highs compressing into a point
Translation: pressure building. Breakout imminent
Four stories. Eight versions. Infinite opportunities.