The most difficult task for a novice trader can be finding a trading style that works. The object of this search is to settle upon a profitable method the trader is able to execute one that gives the trader the confidence to use the system. However, this journey can be a winding road with many switchbacks and blind alleys.

The following analysis of a long pattern- breakout trade in ExxonMobil (XOM) illustrates how I find chart-based trade setups, how I manage a position, and why I sell. Although it has discretionary elements, the following case study illustrates a specific trading approach. It works for me, but it might not work for you.