Suri Duddella — Mastering stock market chart patterns

Smarter Trading Podcast Episode 2

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.

About Suri Dudella

Suri is the founder of Suri Notes and has been a private trader for the past 26 years, using his proprietary mathematical and algorithmic, and pattern recognition models. He was a founder of a financial research and analysis company from 1998 to 2005 specializing in financial modeling, research/analysis, and technology architecture for financial institutions, investment research, and investment media companies. Mr. Duddella’s research has been reviewed and featured in Forbes, Barron’s, Moneyshow, Active Trader, Stocks and Commodities, TRADERS’ magazine (Germany), Traders Journal, and Washington Business Journal.

Suri is the author of the book “Trade Chart Patterns Like The Pros” and currently publishes a weekly magazine “Chart Patterns & Algo. Trader”.

Watch the interview in video here

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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Episode timestamps

0:00 Introduction
1:20 Suri’s background in mathematics and engineering
8:45 Geometric pattern recognition models
11:10 The history of chart patterns
14:40 The art of recognizing & understanding chart patterns
19:30 Why patterns morph and change shape
22:10 Failed patterns and what you can learn from them
26:40 Market context and why it’s so import
31:10 Intraday chart patterns can be successful but it’s much harder
35:05 Continuation versus reversal chart patterns
37:50 Changes in chart patterns over the years
39:45 Successful trading is loving what you do
41:30 Advice to new traders getting started
44:10 Boeing chart structure analysis w/ multiple patterns at once
47:10 AAPL ABC bullish symmetrical triangle
49:20 ABC bullish patterns in airline stocks
50:58 CSCO cup & handle pattern and defining stops & targets w/ fibonacci
52:57 Gold monthly cup and handle pattern
54:40 Macro sector analysis and relative performance
57:55 NVDA Symmetrical Triangle pattern
58:57 Bitcoin Parabolic Arc pattern

Highlight clip: Pros and cons of day trading chart patterns

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