The Most Reliable Chart Patterns By: George Angell The following is an excerpt from Small Stocks, Big Profits In seeking a reliable chart pattern, a chart analyst will typically look to what worked best in the past. When he finds such a pattern he will look for a similar configuration in analyzing potential stocks to buy. As a rule, the propensity to identify tried-and-true patterns creates a sort of self-fulfilling occurrence: because a stock generates a bullish pattern, buyers rush in and the stock rises. Therefore, if a pattern proves profitable, the investor will attempt to recreate the same model again. He will do this until he begins to lose money. He will then begin to look for another pattern. While there are no “sure-thing” patterns, there are commonly acceptable ones that routinely appear on price charts. As a novice chartist, you will want to be familiar with the following widely-watched chart patterns: T he head-and...
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