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Patterns within patterns

One of the problems swing traders in stocks face is correlation; the sad reality is that stocks mostly move together, and trades in stocks mostly win and lose together. If you buy four names and short four at the same time, there’s a pretty good chance that one...

Surfing the market waves: the nested pullback

Patterns are important in trading; you might even say that trading is basically a game of recognizing the right patterns and doing the right thing when they happen. Most of you who have read my blog or my book, or have seen the research I write every day, know that I...

The nested pullback

This is the third article in my series on pattern recognition, and the last on pullbacks. Most patterns in markets are relatively simple, and most patterns were labeled long ago. True, there are many variations and refinements on pattern names, but there just...