hey my friend welcome to this video on stock market chart patterns that repeat
this is a really cool opportunity to find a certain chart patterns on markets
on the same market that repeat over and over and over and over and that's what
I'm going to show you today in fact there's a lot of patterns like this that
I've seen one of the most popular is channeling patterns and they can be okay
but they usually only last for a small a period of time before the market breaks
out of that channel so I'm gonna share with you one that I've never actually
seen anyone teach before so probably somebody has I've just never seen it but
I'm gonna share with it too with you today I just found this as I was
scanning through stocks one day and came across this pattern love the shirt with
you so as you can see here you can probably just see it without me even
pointing it out and here's the symbol by the way mint and it's a daily chart as
you can see there all right you can see the months down here and get a little
vertical line for each month I put that there intentionally because you can see
the powder and market starts at the bottom and by the end of the month it
goes up and then it drops down huh cool next month
caps down goes up end of the month gaps back down beginning of the month goes up
end of the month and gaps back down beginning of the month goes back up end
of the month and gaps back down are you serious
beginning of that month goes up end of the month gaps back down beginning of
the month end of the month gaps back down beginning of the month goes up gaps
back down oh my gosh okay really is this that easy
yeah seriously right that's pretty darn cool you could just trade that over and
over and over I mean dang that's like one of the easiest things I've ever seen
okay so let me share with you a couple things on this hopefully you can take
this and translate it into making money obviously no guarantees and as I said
patterns can and do change so don't expect that any pattern will stay the
same forever but this one's been going on for quite a while so I'll share with
you the markets that I see this particular pattern
the most consistently in fact it's really the only particular market group
that I see it working on it is short term bonds short term bonds not all of
them but some of them and there's a couple different ways that we could
trade this right we could go ahead and just open at the beginning of the month
and close out at the end of the month by and then close our position come back in
buy again close our position or if you wanted to take the long haul
you could buy here actually let me take that triangle on offer here to
illustrate this other approach you could buy sell part of your position all right
let it come back down add to your position and by the way you'd have the
option of either selling here or not selling here and maybe just adding to
your position at the beginning of every month if you did that then of course the
approach is that you're getting full advantage of that big big big move but
on the other hand you know you aren't giving Mack some money on each of these
retraces at least on paper and also the problem if that is is if it doesn't just
happen paper but then one day the market actually turns around and goes and tanks
will then it's not on paper anymore so taking profits at these highs is a risk
management and money management technique that lowers your risk if this
pattern stops repeating you've locked in some profits here and then you're golden
the longer it goes great right no problem
but at least you're not keeping your entire position at risk so that would be
my personal preference but you decide what works well for you and it's really
a calendar cycle right it's just the beginning of every month so here's
another one this is Barclays one three-month t-bill
now and this one's a little different as you can see each one will have its own a
little different personality so here we get the same kind of dynamic beginning
of the month goes up to the end of the month beginning of the month starts low
it was high and we get that repeating pattern no
this one doesn't go up as high it starts at the same this one starts lower and
goes higher so we get even more volatility but what's unique about this
one is that there's really no trending and the last one we did have an overall
over the number of mounts a trend that went up this one's pretty much sideways
get a little exception there a little exception there but basically it's still
pretty sideways but you get the same dynamic of starting low at the beginning
of the month ending high at the end of the month now one thing I really want to
share with you here is that these moves are pretty darn small so there may be
only a few cents 5 cents 10 cent move and therefore you've got also when you
look at this consider that ok you know we're just getting small little moves
number 2 also the cost so some of these short-term bombs have very high expense
ratios so look at that before you choose which one if you're going to even do one
but make sure you consider that in your calculation so these are basically a
scalp type approaches I mean we're really talking pennies here in the move
but hey and you skim out up two dollars and again it's kind of a it's just a
simple trade you know to be an expert traitor to take advantage of this
personally I would always use risk management money management in any trade
I take even this one because sure it looks great right now but and even
though it's been going up for months and months and months the one thing about
the market is it can always change right the only constant in the world is change
so don't expect it to go on forever and ever and ever but there's a reason that
these things happen and if you want to look for between scalp these profitably
great also look at your Commission's because these moves are so small with a
302 price range I would say you've got to be with a very very very low
Commission a broker for them okay let's look at another one I answer now we got
a third one here and I wanted to show you this one because we always like to
you know see the exceptions to the rules right and the imperfect scenarios so
this is the iShares fluting read to note and if we look at the pattern on this
one well it goes up there this one goes up a little bit again you know we're
talking really pennies here now that's that's a better pattern that's a better
pattern that one's okay it doesn't go very far this one not so bueno right yes
it's here and it goes down ooh wait a minute that's not what we wanted well
guess what we're gonna have some losing trades no matter what we do the next one
nice move for you know this Elise for that one a better a nice move this one
just went sideways the whole month about five cents frankly is all that it moved
on that so these these horizontal lines are about five pennies five cents and
that's it so that's why they stay you got a really able to look mission broker
maybe put it on some signs I don't know gotta really be careful with your money
management on this stuff because we are talking about the gist making pennies so
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