Reading the market tea leaves will require your growing skill and patience. But many good trade setups can be found simply by combining individual elements of trend and time. As these pieces are drawn into place, look for opportunity through the convergence of two or more elements. This is the process of cross-verification.

Market crowds act through predictable herd instinct at key moments within price development. This powerful mechanism guides the creation of all trade setups. Signposts identify where and how this emotional behavior should exert itself on the price chart. Divergent market forces emit little but noise through most of their existence. Patience requires waiting until major impulses intersect at small crossroads of trend and time. Noise reduces and signal increases within these important convergence zones. When more impulses enter these dynamic levels, signal grows even louder and noise may cease completely. This ringing bell is the sound of profitable opportunity for the alert trader.

Try to uncover signposts through many different types of indicators and patterns. This cross-verification (CV) process offers an objective method to determine the odds of success for any trade entry. CV power relies on this simple calculation: the more converging impulses within a given setup, the higher the probability that a trade will yield the predicted outcome. Use the diverse tools of the charting landscape to locate these intersecting points within the evolving Pattern Cycles. This sums up most of the preparation and analysis required before trade execution.

The market never reveals its secrets in the same way twice. When an arithmetic chart prints a questionable trendline, the log version may show a clear parallel channel. Rising momentum may scream "rally!", while the Bollinger Bands scream "selloff!". Take adequate time to learn the specific applications of each individual resource. Over time you'll develop the intuition to examine the most promising setups with the right ones at precisely the right times. Keep in mind that novices typically miss many important features of the 3-D charting landscape. If you're new to the game, rely on a checklist to make sure that you investigate your charts thoroughly.

This vital process may still appear complicated or confusing at first glance. Use the analogy of the traders' toolbox. Just as a woodworker relies on many different saws to build a cabinet, you must apply the right set of tools to build profitable positions. While the woodworker uses some items daily, others fill a special purpose that arises infrequently. The successful trader looks at similar chart features each day, but pulls up special resources to answer difficult questions. In the end, each skilled craftsman knows when and how to use specific tools to create their final works of art.