Chart Platform Compression Patterns for Early Entries

Trade with Professional Traders for Higher Profits

The stock chart example below recently had a strong “Pop Out of the Box” candlestick pattern, after a Platform compression pattern. Preceding the compression, the price action was a Trading Range.

Oftentimes Trading Ranges compress into a tighter formation when Dark Pool Quiet Accumulation is underway.

Dark Pools have been quietly accumulating this sector of stocks for most of the year. A crossover confirmation of both the ChiOsc Indicator which is a Volume Oscillator, and the Money Flow Index Indicator confirm the strength of the breakout.

This run is dominated by Professional Traders using Technical Analysis.

It is therefore easy to trade with the Professional Traders as they are not emotional, set precise entries and exits, and they have fewer wicks and tails on candlesticks. There are numerous patterns like this that are setting up, as the Market Condition at this time is a Platform in development condition.

This condition occurs when the Buy Side Institutions have ample capital to accumulate more stock for their Mutual and Pension Funds. The Money Flow Index Indicator confirms that a huge surge of new money has moved into the Mutual Fund industry, with a preponderance of new investors wanting to buy stocks and Exchange Traded Funds rather than bonds.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a StockCharts chart, courtesy of StockCharts.com

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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