Profiting with Chart Patterns book

Summary: Profiting with Chart Patterns
Alright, that brings us to the close of our 
Profiting with Chart Patterns
book. I hope 
the examples have clearly illuminated in your mind what these patterns look like, why 
they form, what the psychology of the patterns is, and how to trade them using the 
Eighths tool once you find them.
The 7 Chart Pattern Method has six basic steps. First, we identify the pattern and 
establish a prior move, which is important for drawing the Eighths scale. Then we 
draw the Eighths scale and look for extreme volatility, which is indicated by bars 
within the range where we drew the Eighths scale crossing two or more bars. We set 
an initial stop at the pattern base, or at the prior Eighths line if we entered the trade 
higher in the pattern. If we did not enter at the exact pattern base, we would set our 
initial stop at the prior Eighths line in the chart. Then, we manage the trade to closure 
by successfully applying trailing stops on the Eighths line. When we get a windfall 
profit crossing three or more Eighths rule lines on one bar, we will go ahead and take 
a profit at the open of the following bar.
I can tell you from personal experience in looking at and using these patterns over the 
last several years, and also publishing about them on our SignalWatch.com website, 
that these seven patterns are absolutely magical. They will help you find the best 
possible entry points and manage the trades to closure to generate the highest, most 
consistent profit at the least risk. The whole point of using these seven patterns and 
the techniques discussed is to manage risk. The more we can reduce risk on our trades, 
the more we are going to improve our odds for success and that is what we are all 
trying to do. 
On behalf of Nirvana Systems, I wish you the best of luck in all of your trading 
endeavors.

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Document Outline

• with Chart Patterns
• by Ed Downs
• November 2016 Edition BK-02-01-01
  • Contents
  • Chapter 1
    • Confirming Entries & Managing Exits
  • Chapter 2
    • Tools of the Trade
  • Chapter 3
    • Definitions, Structures, & Examples
  • Appendix A
    • Additional Resources