As we say time and time again, our trading strategy is all about keeping things simple. Spotting a chart pattern on a higher timeframe is about as simple as it gets. Why? Because when a large number of traders all see the same, prominent pattern on their screens, it increases the likelihood that a high number of traders will all act on the same pattern.

These patterns usually have bullish or bearish connotation attached to them, so it inspires those traders to act in a certain way. Especially when you factor in how the stock’s price typically moves when those such patterns are present.

In this case we have a classic example of a head and shoulders pattern forming on Chinese stock…

Continue reading at WEALTHPOP.com