Episode Three – Classical Charting & Technical Analysis

Published on
May 17th, 2017
52 minutes

Episode Three – Classical Charting & Technical Analysis

Charting Masterclasses ·
Featuring Peter Brandt

Published on: May 17th, 2017 • Duration: 52 minutes

In Episode 3 of Charting Masterclasses from a Trading Legend, Peter Brandt delves into the world of classical charting and technical analysis. Peter explains what charts can tell you and importantly, what they can’t, with a lesson on the major pattern formations he looks for and the crucial ability to spot false breakouts. There’s also a number of practical examples of how price trend action has followed chart patterns in some of the major commodity and foreign exchange markets.


  • BE
    Bruce E.
    6 August 2018 @ 02:30
    Outstanding! I am a former Factor subscriber, have tremendous respect for Peter Brandt!
  • SM
    Sarit M.
    13 June 2018 @ 23:01
    Awesome talk, Peter. Definitely very inspiring! I had a couple of questions about the head and shoulders pattern. Schabaker mentions patterns with ascending and descending neck lines. Do you ignore those as diagonal patterns? Also he mentions that head and shoulder bottoms in ascending charts are not as reliable and should be ignored. Does that still apply? I saw that you showed a perfect hear and shoulder bottom pattern in your example with gold prices that really worked out in your favor. So I wasn't sure...
  • MN
    Marcus N.
    2 May 2018 @ 09:43
    Hi Peter, I'm curious about your stop-loss technique. As you mention, Algo trading and HFT can produce very long candle wicks, and I believe that there are some snipers around who place low-ball bids during after-hours trading in the hope of getting filled during low-liquidity lulls when the US & European exchanges are closed. So how do you set a stop that protects your trade if you get the trend wrong, but doesn't get filled prematurely while most people are asleep?
  • ju
    justyna u.
    20 June 2017 @ 16:40
    What was the book?
  • EL
    Eric L.
    16 June 2017 @ 06:31
    Very good point.
    • EL
      Eric L.
      16 June 2017 @ 06:33
      Whoops I was replying to the comment below about adding back dividends
  • JF
    John F.
    14 June 2017 @ 21:27
    Great series, thank you to Peter & RV. A quick Q. When you are looking at non-futures markets do you use charts that adjust for dividends or not? This can have a significant effect on patterns e.g. EWM. Many thx in advance.
  • SB
    S. B.
    4 June 2017 @ 16:23
    Very interesting! Never really used charting, so a great introduction!
  • EG
    Eduardo G.
    23 May 2017 @ 13:08
    Thanks Peter and Realvision for the great video series. If I may ask Peter a question, and I apologise in advance if it's a stupid one, but how long in average do your winning/losing trades go for? In other words, in average, how soon you know whether you entered the trade at the right time or not? Many thanks!
    • PB
      Peter B.
      31 May 2017 @ 21:57
      Edwardo -- keep in mind I am a trader and not a buy and hold investor. My typical wins last anywhere from two weeks to four months. Losers are usually covered within a week.
    • ju
      justyna u.
      20 June 2017 @ 20:26
      Peter what good book do you recommend for trades who want to learn TA?
    • VK
      Vladimir K.
      3 July 2017 @ 00:20
      The books were covered in the first episode. - TA and stock market profits by Richard W. Shabacker - TA of Stock Trends by Edwards and Magee
  • JL
    Jimmy L.
    23 May 2017 @ 12:21
    This is the first time I hear someone group patterns between horizontal and diagonal patterns, it"s quite refreshing, maybe with diagonal patterns It"s always way too subjective to draw, especially when the swing lows jump all over the place, so you break one trend line, you can always draw another slightly lower/higher....with horizontal patterns...you can always aim for where the horizontal line is....makes the pattern more clear cut to trade on....
  • JM
    James M.
    20 May 2017 @ 13:42
    Peter with HFT as it is today what do you think of TA and the Self Profiling Prophecy thesis? Excellent episode and a fantastic series overall, it has convinced me to subscribe to the Factor. I am so incuraged to hear Peter state that he feels that most of the modern indicators are irrelevant as they are just a reflection/derivative of PRICE so why complicate or add complexity to an already very difficult pursuit of charting and over all speculation with multitudes of INDICATORS, always seemed more like a sales gimmick to me for TA tipsters ? I was always skeptical of TA until coming across Peter but his classical approach has convinced me to reignite this resource of classical charting for speculation. The main indicators to me are PRICE and VOLUME(COT) everything else seems noise.
  • CY
    C Y.
    20 May 2017 @ 13:37
    The conclusion I draw based on his win ratio is that his biggest skill lies in trade management. Keep your losses small and let your winners grow. His humility and ability to change his mind is another of the skills that is easily observable. Awesome interview.
  • MB
    Max B.
    20 May 2017 @ 11:37
    Good content. I was starting to get bogged down with all the tech analysis but will def be be giving this approach ago, combined with macro. I like the simplified approach. Good stuff
  • DW
    Daniel W.
    19 May 2017 @ 01:45
    Is it possible to ask Paul a question? I would love to hear how big his stops are for his 3 preferred patterns where he trades on a breakout. How far away his entry does he put his stop? Thank you Peter for your great content!
    • PB
      Peter B.
      19 May 2017 @ 15:31
      Daniel, the absolute hardest challenge I have had is the matter of tactics. Entering a trade is rather easy -- a decisive breakout on a closing price basis. But how to manage a trade -- that is the tough one. I have experimented with many methods over the years. To start out with I identify the last wide range bar completely within the pattern before the breakout and use the high of that bar (for shorts) or low of the bar (for longs) for protections. But this is for futures because they are leveraged. For stocks I find the last pivot low or high within a pattern.
    • DW
      Daniel W.
      19 May 2017 @ 22:23
      Thank you for your answer Peter, and for great content. Appreciate it a lot. May I follow-up on the previous question and also ask you how you put the stops for FX that I predominantly trade atm? Do you even trade FX or do you only trade FX-Futures? My feeling is that the 240, D and W charts are becoming more choppy, especially the 240 and somewhat the D charts, compared to previous years.
    • ju
      justyna u.
      20 June 2017 @ 20:24
      Just wonder how do you deal with re-entries? If you your trade goes against you and than reverse again, do you treat it as new entry?
    • VK
      Vladimir K.
      3 July 2017 @ 00:09
      in the first video similar question was answered. Peter said that his rule is 2 dates and he is out.
  • JH
    John H.
    17 May 2017 @ 22:08
    Not a big charts guy myself. I like how he says most of the time, markets defy any (of his) analysis. Also that weekly charts are most reliable (and intra-day useless), which makes sense in this day and age of algorithmic trading.
  • TL
    T L.
    17 May 2017 @ 22:00
    very good content! really loving this video. Peter, do you agree, that charting works best in markets that are the least algo driven?
    • PB
      Peter B.
      19 May 2017 @ 15:32
      I would agree with this appraisal, at least as far as intraday charts are concerned. Algo and HFT trading tends to give candlestick bars wicks that are extremely large so it is important to look at true range bars (the difference between the open and closing prices).
  • MS
    Matt S.
    17 May 2017 @ 12:14
    First again? OMG :)