A lot of traders will see very a volatile stock chart on tradingview and think “there’s no way I’m getting into that mess. But some will see these as an opportunity. Not every stock chart in the red like our example will work out in your favor but if you play your cards right sometimes the most volatile stock can be your most profitable return. My awesome assistant coach John Balauat in my stocks and crypto trading academy shares his thoughts on the “Narcissistic Ex-boyfriend pattern” in trading and how you can use this to your advantage in day trading to see huge returns on your investments.
The Narcissistic Ex-boyfriend Pattern
This week we were having fun and I jokingly called a stock chart the “Narcissistic Ex-boyfriend Pattern.” Fun should be part of learning, amiright?
Although I was jesting, the lesson holds true and I think it’s a good idea to use this week’s article to talk about it.
What Is the Narcissistic Ex-boyfriend Pattern?
First of all, don’t talk about this pattern without context … Cause your friends will think you’re nuts.
Take a look at this chart, AKA the daily chart of AgriFORCE Growing Systems (NASDAQ: AGRI) …
AgriFORCE Growing Systems (NASDAQ: AGRI) daily chart from
Notice the large candles that indicate huge price breakouts. Although these movements are attractive to traders, those moves were always followed by a huge crash in price the very next day.
Kinda like a narcissistic ex-boyfriend (or girlfriend), huh? One day they make you feel really good … but the next day they break your heart. It just doesn’t end well.
That’s the case with this pattern and is the reason why it’s so important to look at the daily chart when researching stocks to trade. The history of a stock will give you strong clues about what to expect in pricing behavior and this is a stock you don’t want to swing or hold long term.
If you had a position in this stock during those times and didn’t get out, you would’ve lost money.
Stocks with the Narcissistic Ex-boyfriend pattern can still be traded and there’s potential for significant profits. Just know what you’re getting into and create your trading plans accordingly.
These types of stocks really move when all the factors line up. Get in and get out while you can and make sure to protect your account!
– John Balauat
Do you want to become a better trader? Come join our Stocks, Trading & Crypto group. We meet every morning at the trading bell so that everyone can learn faster and more effectively. We’d love to have you join us!