FinList Pattern Guide
Finetic uses an AI stock picking system that combines our founder’s many years of investment experience and technology development to create a profitable stock picking system.
Based on historical stellar stock performance, the System has deduced four important chart patterns. These patterns appear not by chance, but through human behavior. In the past, many world-class investors have learned to use these patterns to make profits in investing in stocks, and now there are many who wish to follow the experience of these great investors in the hope that they can also profit from stock trading.
To succeed, we just need to stand on the shoulders of our predecessors. We don't need to create our own methods, we just need to learn their methods to succeed.
We'll explain the four strong patterns below. Remember to join our Sunday Club to learn how to spot and profit from these patterns!
Cup with handle
This pattern is formed by 4 phases
- Pre-rise wave. There have previously been significant purchases of this stock, preferably pushing the price up 20-30%.
- Mid-term pullback. Most of the stocks will not go straight up, because the main investors who purchased in the early stage causing the stock price to form a pre-rise wave will begin to stop buying or start selling for profit. When the main investors stop buying and start selling, the stock price will be negatively affected and there is a pullback.
- Bounceback. As the stock price falls, large investors start to buy again and the stock price bounces back, but this rise is usually not higher than the previous rise.
- Breakthrough. After the rebound, there is another pullback. When these four stages are completed, the “cup and handle” forms ready for a breakthrough.
This pattern requires only the first 3 phases of the "cup and handle" pattern, breaking through right afterwards and not forming the handle at the fourth stage. This pattern is prone to failure, so the chances of straight price increases are slim.
A flat base usually occurs after a breakout of a "cup and handle". There will be a short period of volatility, flat base means narrow up and down, there will not be an obvious big fluctuation. When there is no big rise or fall in the stock price, retail investors will lose their patience and switch to other stocks. At this time, large investors will take advantage of the opportunity to buy, pushing up the stock price to form a breakthrough.
This pattern is usually seen in times of stock market turbulence. When market conditions are poor, most stocks will follow the market and pull lower. When the market stabilizes, a double bottom may form on the upside. Most of the later bottoms will be deeper than the previous ones, so the double bottom pattern appears.