Many individuals who are learning to day trade all will find themselves with the same problem. How to identify trade patterns in real time. The problem isn't merely discovering some good patterns, it is finding enough of them to create a profit on a regular basis. Trading and investing mostly a probabilities play. To come out on top you need plenty of choices in order for the probabilities benefit you due to the fact that a specified percentage will most likely wind up as a loss no matter what degree of expertise you possess. The main target is to attempt to finish each day with a gain. This indicates we likely have to locate a minimum of five day trading patterns each day. Not every trade setups will be executed. Skipping potential trades happens regularly also, particularly if you are using limit rules to place your trades a low risk spot and the trade does not get executed. One of the simplest methods to find trade ideas is to keep it simple. Set up a five min chart of a stock price, preferably one that maintains decent volume and volatility. Put together both bollinger bands and a 13 period SMA on the stock chart. We are going to make use of both of these to determine a trend and then get in the trend at a low risk point. The key to this technique is to not speculate when a trend will start - this means don't anticipate the direction of prices. When looking to buy, we are going to wait until the uppermost band is angled up and the lower band is angled up for a minimum of price bars. We want the price to have touched traded higher than the top band recently. Next we check out the 13 period moving average. Nearly anything in this spot as soon as the stock price has established a trend is a good area for entry. In some strong trends there may be almost no opportunity - meaning no pullback to the moving average or a little bit lower. For a short setup we are going to perform just the reverse with a slight modification. Short trends commonly tend to be quicker and have less capacity to carry on the price trend. Right after price pushes back beyond the 13 period simple average the down trend is done the majority of the time. We need to observe the upper and lower band to be angled down for at least the last 5 price bars. We will look for the price to be on or below the bottom band for a few bars currently. The trade in the downtrend is will be about 50-75 % between the 13 period average price and the bottom bollinger band. When looking to place a short trade making use of this technique is likely to lead to smaller profits than the long trades. Another thing to remember when utilizing this method is to use it on dozens of stocks simultaneously. Make sure that you have many varied industries included so there will be a variety of trade options to choose from. The majority of the decent gains using this method will occur in the first 3 or 4 hours of trading. After some use, you ought to discover that this technique is capable to acheive around a 65 % win ratio with no substantial losses. If you are in a long or a short trade and the bands begin going sideways and you have not exited at a profit, it is a good idea to aim to get out of the trade at the best price you can, even if that is a small loss. The average trade time from entry with this technique is around 30 minutes or so. Anything beyond this time in the absence of nailing down a profit increases the chances of a losing trade.