For Sideways Candlestick Pattern Analysis Breakout Direction
Oftentimes, traders may be confused with conflicting indicator patterns. Contrarian patterns between indicators, and between Price action and Volume based Indicators are very common these days.
In the chart example below the stock gapped up on earnings news, and shifted to a sideways pattern that compressed. Then it slipped slightly but quickly rebounded, and began another compression pattern.
Comparative analysis and Relational Technical Analysis™ are required for a stock chart like this, otherwise the interpretation of just candlesticks or just a couple of indicators will be incorrect.
Understanding what the contrarian indicator patterns represent in terms of near-term price action, is crucial for higher profitability and strong stock picks in the current Stock Market.
A common area of difficulty for most traders is the various sideways patterns that are becoming more and more common in the new Market Structure, which is reshaping how Retail Traders will trade over the next decade.
There are massive changes going on behind the scenes of the Stock Market that only Professional Traders are privileged to know. This leaves most Retail Traders in the dark, and can often create more risk and lower profits for them.
Short-term trading analysis is entirely different than long-term investing analysis. The training in this article is for short-term trading, and not long-term investing.
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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