Suri Duddella joins us in Episode 2 of Smarter Trading to share his knowledge about stock market chart patterns and how he uses automation to find the best available setups.

We discuss the dangers traders can run into of self-identifying chart patterns without the proper understanding of their structure and why Suri thinks you cannot trade charts blindly without taking into consideration what the market is doing.

Key learning points

Chart patterns are a tool just like any other indicator to assist traders

It can be dangerous to discretionarily identify chart patterns

Use mathematics to detect and validate chart patterns

Master 1 or 2 chart patterns instead of trying to trade them all

Just because you see a pattern doesn’t mean the market must follow that structure

Failed chart patterns often times lead to more profitable trades

You cannot trade patterns profitably without support from market context

Identifying chart patterns are one of the last parts before placing a trade

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Show Notes0:00 Introduction1:20 Suri’s background in mathematics and engineering8:45 Geometric pattern recognition models11:10 The history of chart patterns14:40 The art of recognizing & understanding chart patterns19:30 Why patterns morph and change shape22:10 Failed patterns and what you can learn from them26:40 Market context and why it’s so import31:10 Intraday chart patterns can be successful but it's much harder35:05 Continuation versus reversal chart patterns37:50 Changes in chart patterns over the years39:45 Successful trading is loving what you do41:30 Advice to new traders getting started44:10 Boeing chart structure analysis w/ multiple patterns at once47:10 AAPL ABC bullish symmetrical triangle49:20 ABC bullish patterns in airline stocks50:58 CSCO Cup & Handle pattern and defining stops & targets w/ fibonacci52:57 Gold monthly cup and handle pattern54:40 Macro sector analysis and relative performance57:55 NVDA Symmetrical Triangle pattern58:57 Bitcoin Parabolic Arc pattern

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