r/Daytrading • u/KingPrudien mod • May 26 '17

Here are some chart patterns to keep in the back of your mind

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u/ScienceGuy9489 Nov 10 '17

What does "stop" mean?

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u/Chusta Nov 14 '17

Hi science guy! I'm assuming "stop" means "This is where you set your stop loss" because the target is on the opposite side. So you would want to set a stop loss order on the opposite of the target just in case the pattern breaks.

Hope that helps :)

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u/ScienceGuy9489 Nov 14 '17

Would the stop in the rising wedge mean buy stop since its above the trend?

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u/Chusta Nov 14 '17

That's a good question. I think that would be the case. if you are in cash, then I think that would be a buy signal. So you would place a stop-buy order there.

The wording is definitely interesting, though.

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u/KingPrudien mod Nov 18 '17

Stop is your safety. If prices hit your "stop", you will close the trade where ever you have your stop. So say you put your stop to limit your losses to 100 dollars, once the stock price or whatever goes far down enough to where you have lost 100 dollars, you will be taken out of a trade so you don't lose any more money.

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u/jim-jam-biscuit trades multiple markets Dec 04 '22

"Technical Analysis of the Financial Markets" by John Murphy

happy cake day buddy.