I am new to day trading, and I am looking to get a better understanding of what key attributes can be identified when trying to identify patterns when day trading. Specifically, I am looking to find out exactly what specifics I can identify from looking at real-time data so that I can identify a pattern that is lining up to know when to buy a stock because it is indicating that it is a potentially good stock to day trade.

Using a common example of a regular day-trading pattern, can anyone help me define steps that I can look for to help qualify a pattern detected that may indicate when to buy/sell.

What can be used to identify from the data a pattern being formed for day-trading.

I can see the patterns in Bar charts, and Candle stick charts, but I am looking for ideas on what I could use from the recent data and trade quotes to detect a pattern that may indicate a potentially good buy / sell time.

Really just looking for someone to help outline a single good pattern if possible.


Suppose such a generic pattern exists and its publicly known so that some kind soul will publish it on Stackexchange for all to profit. How long do you think that pattern will persist?

Developing strategies and algorithms can be a relatively complicated business. Consider https://www.quantopian.com/ which is trying to do what you are thinking about in a professional and systematically tested manner.

Not only is spotting a good pattern important, but having the mechanism to systematically test it and then execute the trades in a consistent manner so that statistically you have success. No pattern will work everytime. Indeed if you identify something that is 55%-45% that is probably quite powerful.

I'm afraid I don't believe is there is a mystical answer to your question, sorry.

  • $\begingroup$ I am really just looking for a base line pattern to build off of, something to start with, not really a catch-all perfect pattern. I am basically looking to find a boiler plate pattern to start with, to get an idea of what day-traders tend to look for in specific patterns. Something to start out with and then build off of, that outlines the specific steps for such pattern(s), in an outlined steps detail. $\endgroup$ – CodingRiot Jun 8 '18 at 11:56
  • $\begingroup$ Very broadly speaking I had a method I liked; 1) identify whether I thought the market was breakout/trending or range trading. If range trading do nothing, otherwise 2) on a point and figure triple top buy into the trend. Appropriate some sensible price target, possibly with vertical counts and establish a stop loss. Since humans don't trade like computers you have to marry this with instinct and wider market views. $\endgroup$ – Attack68 Jun 8 '18 at 12:03

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