Visual Guide to Chart Patterns

BASIC SELL SIGNALS

Deciding when to sell is as hard as making up your mind and pulling the trigger. That decision-making process can be made easier by using chart patterns. They offer advantages that other techniques do not.

For example, a confirmed bearish chart pattern is a sell signal, and I will introduce you to seven of them. But not all bearish chart patterns mean a substantial decline. That is when the measure rule helps.

Use the measure rule to estimate how far price is going to fall. If the drop is severe enough, then you know to sell now and save losing your shirt for another time.