double bottom forming, page-9

OK..I have no problem with scepicism...lol

For me the point of chart patterns is that they simply alert me to the probability of a particular outcome.

So once I spot a triangle pattern or a cup and handle or a double bottom, I can determine a price (by using the rules to the particular pattern) - at which point that stock has a high probability of moving upwards.

Once I have that price, I can set an alert and forget about monitoring that stock until that alert is triggered.

If the alert is triggered I would then determine whether to enter the trade by looking at the appropriate factors like volume, depth, and perhaps some indicators.

Not every triggerd price alert results in a buy decision, but by looking for chart patterns I'm simply able to sift out a manageable number of potenial trades in whatever sector I'm trading.

For short term trades I might use patterns alone and ignore the fundamentals..whereas for a longer timeframe I would use some fundamental analysis in conjunction with the charts.