New Western Candlesticks Have Entry Signals in Trendline Patterns
Traders learn about Trends Up, Down, and Sideways which are the commonly taught Trends. There is also the Long-Term Trend that is sometimes called the Primary Trend, and the Intermediate and Short-Term Trends. However few traders learn the Trendline Patterns.
As an example, a very common Trendline Pattern that many Swing Traders enjoy using is the Stairstep Trendline Pattern. See the chart example below.
This looks exactly like what the name implies. It only forms on the Short-Term Trend, and it is a Momentum Energy Pattern. It is ideal for Swing and Day Traders.
All Chart Trends have Trendline Patterns. Each pattern is how price behaves over and over during a period of time, when a specific Market Participant Group controls price. These patterns can repeat for a few weeks, a few months, or over a year. All Trendline Patterns change as various Market Participant Groups cease to control price, and a new group takes over.
Martha Stokes CMT
TechniTrader technical analysis using a FreeStockCharts chart, courtesy of Worden Bros. and FreeStockCharts.com
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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