I do not believe that Technical Analysis is greatly predictive or that it is some sort of Holy Grail for traders. However, I do know that there are certain patterns that are “easier” to trade, with “easy” being defined as a trade that has a natural level for a stop-loss, and more support and less resistance in the direction the trade is expected to move.

As the Cup-With-Handle breakout is popular and typically makes for an easy trade, I will post daily breakouts of the CWH variety.

I will also post daily breakdowns. These might be breakdowns from a Head-and-Shoulders top or from the failure of price to surpass or be supported by a major moving average (typically the 50 or 200-day simple moving averages).

I like to keep things simple, and will typically use only price, volume, relative strength, MACD, and Stochastics as indicators.

Future charts may also feature stocks screened by profitable, backtested filters.

This blog is intended to be interactive. If there is a particular chart or equity you would like to have featured, drop me an email or leave me a comment and I will consider posting it, time and mood permitting.

woodshedder_blogspot@yahoo.com