There are a lot of chart patterns that provide high rewards and low risks, however, I’ll go over two now for simplicity. Simply put, these patterns make it very easy to incorporate risk control as well as self control, thus reducing emotional trading and, consequently, profiting more. I will expatiate:
Flat Line/Base Setups
This is thus, for it shows a base (of sort) on which the stock price bounces every single time–for a short while until it breaks out (upwards or downwards). Think about an horizontal line that you could draw underneath the stock price—a line on which the stock price has touched at least three times in the last five trading days. You may call this the very basis for support plays because you could buy near it and set a 3-5% stop loss below the flat, support line. To sell, start locking some gains after 5-7% profit; it gets easier eventually, but at least doing this now helps with consistent gains. You may also use Barchart.com to help you identify support by scrolling down to key ‘turning points’.
T-Line (8ema)
While this is just an indicator, it is very potent and widely used. I’m suggesting this particularly for beginners who are still learning to read charts, as its simplicity facilitates entry and exits. When looking at a stock in a downtrend, or a stock trading below the T-Line, your entry signal is the first day it closes above it. So, make sure to take an entry near it (the 8ema or T-Line… after a close ABOVE). Your exit is the converse– when it closes below. One might even just set a 3% stop loss below the line.
Uchiha's Blog 