Type to search

Todays Big Stock Wealthpop News

The Best Way To Conquer Any Market Environment⎯1 Trade Setup To Practice


The trade we have on watch today comes from a stock and pattern we don’t talk much about. However, the pattern being put in by United Rentals (URI) is one every trader should know for there own sake. But first, let’s familiarize ourselves with the context in which we are seeing it.

After briefly making a new 52-week high of just over 490, URI came crashing back down toward the 400 level, but not before starting to form our inverse head and shoulders pattern along the way. Currently, the stock is making its way back 455, a key level if the stock can get a close above, from the low of right around 415.

This inverse head and shoulders is bullish reversal pattern that signals the stock is definitely on the move after pivoting off 415 or so and bouncing upward to current prices. If we can get that close above 455, then odds are the we get a run higher.

However, the overall market will have a say in all this. If the broader market decides to hold steady or take off higher, the probability of this stock making another move higher are greatly increased. If the market begins to collapse, then this stock will likely follow suit.

This pattern, or any for that matter, are not guarantees of the move they imply, but there are clues traders can use to help them plan their next trade. When these patterns are so easily spotted, it’s highly likely that we aren’t the only ones that can see this pattern form, which bodes well for us and the implied move we are expecting to see.

Now, there are such things as false breakouts and breakdowns that we want to be careful of. One rule of thumb I have begun to teach my students is if you’re certain of a move coming, just wait until the next candle closes. Many times have I entered a trade based on my certainty of the coming move only to be stopped out by the very next candle.

The key lesson to learn here is patience, or as I like to call it PAYtience. Fortunes have been made on little else than a trade being able to control his or her emotions and impulses in waiting for the opportune time to make their move. Make sure you practice controlling yourself. Conquer yourself, conquer the market.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

This year is drawing to a close, make sure you’re turning the corner on your trading to position yourself to win all 2024. Sign up today! Until then…

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

  • 1

Leave a Comment

Your email address will not be published. Required fields are marked *


It's not goodbye, it's hello Magnifi!

You are now leaving a Magnifi Communities' website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi