Chart 1: SLV Golden Cross setting up

After learning what the patterns are, I believe that the only way to get good at finding the patterns in charts is to read tons charts.  Not every stock, ETF, or Currency pair is trading in a pattern, but if you can't find a pattern, don't give up, move on to another.  It is overwhelming at first, but if you start drawing lines, the patterns will emerge.

Another lesson that I've learned is that when you find patterns or indicators, other traders can see them too, which can help them come self-fulfilling prophecies.  As an example, in the SLV chart, the price is trading in an ascending channel.  If other traders see that, they will set a buy order at the bottom of the channel and a sell at the top for a swing trade.  Also, if you look at the 50 and 200 day moving average, a Golden Cross is setting up.  Other traders also see that, which means they might set buy orders above the channel anticipating a breakout of the range.  Knowing that helps you identify where to place your buy and sell orders.

In this chart I am tracking the ascending price channel.  My hope is to set a buy order at $17.50, and sell at the $19.00 resistance level.

I will be revisiting all of my charts to see what I did right, and what I did wrong.  I will also be tracking my success rate.  If the price goes in the direction of my prediction I will consider it a success, if price breaks in the opposite direction, I will consider it a failure.