Creating a Watchlist from Stock Chart Patterns
If you normally start building your swing- or day-trading watchlist starting from tech analysis, here is a good tool that can help you accelerate this process.
Step 1: Decide which stocks or other financial instruments to trade
For example, in the case with swing trading, you may prefer stocks of large companies with predictable volatility and noticeable up or downtrends.
Step 2: Open this list on the watchlist.io website and scroll through the charts
See S&P 500 Companies list as an example.
Step 3: Mark charts with patterns that you’re already familiar with as favorites
Step 4: Save your “Favorites” as a new list, e.g. “July 18th, 2019 (daily)”. Go through each instrument on the list, examine the full price history and financial ratios in your favorite stock analysis tools. Remove instruments that don’t pass your trading criteria.
Done! Now repeat that process every evening or weekend, do a retrospective analysis of past trades or ideas, and you will greatly improve your pattern recognition skills.
Happy trading!
