In the real world, finding a chart pattern is tough. The pattern-matching tool in thinkorswim by TD Ameritrade identifies price trend needles in the stock-market haystack.
In the many books on technical analysis, visible chart patterns seem to jump right off the page. Such is the power of selective editing. In the real world though, finding a charting pattern with a clean signal and imminent breakout is more like playing connect the dots on television static. To help sort through the haystack, the pattern-matching function in thinkorswim® Charts is a direct, clear way to identify 16 different patterns, past and present.
To evaluate the patterns on one of your daily charts, follow the steps below:
For illustrative purposes only.
1 - Click the “Patterns” button in the upper right of a chart, next to Studies. Choose Select Patterns to bring up the pattern-selection menu (not shown here), where you can add any of the available pattern types.
2 - In the new window, double-click your desired pattern to add it to the chart. The first option you’ll see is Ascending Triangles, which we’ll choose for our chart here. Double click and click “OK.”
3 - If the price action qualifies, the study will appear in the chart. Here the pink lines highlight the ascending triangles that have already formed, while the green shaded area on the right is a possible pattern formation.
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC, and a subsidiary of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of the Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2020 Charles Schwab & Co., Inc. Member SIPC.