Top Money Making Candlestick Trading Pattern

A top swing trading pattern explained by Tom Willard

Introduction
This video explains one of the top swing trading patterns/concepts using candlestick charts. It's simply finding a trend and looking for a retracement based on simple fibonacci retracement concepts. Anyone can learn these simple technical setups quickly and put them to use immediately.

Short term trading includes swing trading and day trading. This top candlestick swing trading pattern is explained by Tom Willard for the swing trader. The swing trader may hold his/her position for more than a day and up to months if the stop loss is not activated. However, this pattern can also be used in day trading.

The rest of this article will explain how this top candlestick swing trading pattern can be used for day trading. In the video the candlesticks are on a daily time period. This same candlestick chart pattern can be found on a day trader’s desktop. However, these candles will be 5 minute candles.

The sample chart pattern in the video is made up of a combination of three of the four most profitable Momentum Minute Trading (MMT) set ups. The set ups are Platform Break Out; Ledge Break Down; The Pull Back; and The Come Back. But, on this sample chart in the video there are three entry points that could be applied in the Momentum Minute Trading style.

Platform Break Out
This is also referred to as Platform Break Up. Normally, the candles are rising gradually or going sideways before the upward break out. This break out sometimes come after a Bollinger Band Squeeze.  The buy long entry is made after the stock price break through the lower red horizontal line in the overall move on the chart in the video.

Ledge Break Down
The Ledge Break Down is expected after the formation of consecutive lowering/sideways candles that forms a ledge. Then, the stock price drops precipitously. This is the reverse to the Platform Break Out. In this case when the stock price drop down below a horizontal line drawn connecting the lower points of the candles that are moving sideways a sell short entry would be made.

The Pull Back
The Pull Back should be expected after a stock price ran upwards. As the saying goes – what goes up will come down, hence we have The Pull Back. A shell short entry will be made during the formation of the second red candle below the upper red horizontal line in the overall move on the chart in the video.

The Come Back
The Come Back is the reverse of The Pull Back. So, what goes down will come up. This kind is also referred to as a Retracement. A buy long entry will be made at the buy point (above the red middle horizontal line) on the chart in the video. This trade could be very profitable after several consecutive down candles.

All the best, I hope this helps.