Developing and using pattern recognition
by Tom Johnson and Mark Boucher
Do you find yourself getting drawn into the game of predicting market trends? Are you awash with
newsletters, TV programs and news stories about "gurus" calling the markets? Such crystal ball gazing is
often idolized by the media. But does sorting bulls from bears help your bottom line? Sure, it makes good
cocktail party talk, but we need more. We all know profitable investing depends on the whole trading
system—selection, entry, exit and money management.
How your account does is the real question, not how the market does. With market uncertainties on the
rise, let' s focus on making your account a raging bull. To do that, we will present our method of pattern
recognition, a technical approach to identifying trading opportunities with the greatest reward-to-risk
ratios. Then we will show you a representative price pattern to trade.