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Volatile Markets Made Easy: Trading Stocks and Options for Increased Profits by Guy Cohen

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Chapter 2Trends and Flags

This chapter is focused on a couple of chart patterns that work consistently, whether in the context of trading volatility or otherwise simply as devices for improving your timing in the markets.

Before we get into the chart patterns themselves, we must understand something even more deep-rooted. The key to consistent trading is good psychology.

• One of the keys to good psychology is having a trading plan. Trading without a plan is tantamount to amateur gambling.

• The key to a good trading plan is a clear set of rules.

• The key to a clear set of rules is an easily definable chart pattern that identifies clear areas of support and resistance for entry, exit, stop placement, and profit management.

• If you’re clear ...

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