One of the most important chart patterns to look for when selecting your stocks

In this video, we look at one of the most important chart patterns to look for when selecting your stocks and in this case, it’s the move out of longer-term congestion and consolidation, which then offers the opportunity to buy as the stock begins its recovery. Typically these are often saucer-shaped with the price descending, bottoming out into congestion, and then starting on the recovery as a bullish trend is established. This process can take weeks months or even years, but all charts display this type of price behavior at some point in their lives. And as you would expect, any breakout or move higher is then confirmed using volume price analysis.