Hi Suzanne NSW, notice you're learning charting methodically and might just mention a book that really put the whole tech patterns/charting scenario into perspective for me. Now I know there's heaps of reads out there now that are useful, and everyone is different in how they perceive charting patterns, but I found learning about Weinstein's stage theory was one of those light bulb moments.
He looked at the 4 stages in the life cycle of a stock - basing, advancing, topping and declining, had plenty of do's and dont's (never buy a stock in a downtrend etc), importance of looking at diff time frames, wkly, daily. Now this may not seem crucial for a daytrader, but personally think its important to understand where the stock sits technically atm and what's the probability of a breakout, pullback etc. Certainly it decreases your risk if you daytrade stocks in uptrends, or imminent breakouts or swings back up. Like to look at big picture, first.
"Secrets for Profiting in Bull and Bear Markets", Stan Weinstein, hope this helps and adds to your charting knowledge.
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much appreciated!
