Chartpattern.com Review
  • Education
  • Quality of Research
  • Chat Room
  • Value
4

Summary

Chartpattern.com is Dan J. Zanger’s stock market research and analysis service. Looking to change your trading game up? Read this review to find out how Chartpattern.com could be what you’re looking for.

What is Chartpattern.com

Chartpattern.com is a stock market research and analysis subscription service operated by Dan J. Zanger since 1998. Subscribers receive The Zanger Report newsletter via e-mail on Sunday, Monday and Wednesday evenings and have access to the live members chatroom, which is open around-the-clock.  

Zanger holds the world record for the largest percentage gain for a personal portfolio for both 12-month and 18-month periods. He grew an $11,000 personal account to $42 million during the 1998 to 2000 internet bubble-era, achieving a 29,233-percent annual gain. He has been featured in numerous publications from FORTUNE, Forbes to Active Trader and Stocks and Commodities as a highly credible stock picker and chartist.  

Zanger Parabolic Curve

Trading Style

Zanger is a pure technical analyst that has spent over 30,000 hours studying every conceivable type of chart pattern and how they play out in different contexts and situations. He is a swing trader primarily targeting momentum breakout patterns with holding times that can range from weeks to years. Uncovering new potential momentum breakout stocks is a key reason so many subscribers have stuck around.

Chartpattern.com Set Ups

Zanger has used the same chart pattern set-ups for nearly two decades. He lists his 11 Most Common Stock Chart Patterns and uses a combination of these set-ups for his trades. These are indeed common classic chart patterns like cup and handles, flags, pennants, triangles, head and shoulders and channels. I find it amazing how well these patterns continue to play out and repeat even during this age of algorithmic trading programs. Not to over simplify, classic patterns are easiest to recognize after they have formed (and after the moves have been made). The trick is spotting them during early formation phases to capture a larger portion of the move before they become ‘text book’ examples.

Zanger Ascending Triangle

Timeframes

Positions may be held from days to years. Zanger doesn’t call trade alerts with specific entry, exit or stop instructions. He may announce that he has taken a position or sold a position in the chatroom.

The Zanger Report

This is the trademark thrice-weekly newsletter Zanger has published since 1998. Each report comes with a macro U.S. market technical analysis using benchmark indices like the S&P 500 and includes up to 16 watch list charts with comments posted on the charts pointing out current and potential chart patterns with potential price targets or predictions. The stock selections are usually medium to high-priced momentum stocks played on the long-side. Occasionally, Zanger may point out potential short-selling opportunities and lower-priced stocks under $15. There are no “penny stocks” in the watch lists. Zanger prefers liquid stocks that have the capacity to explode to the upside with months to years of follow through.

The “stock picking” element of the service is similar to Motley Fool and IBD Leaderboard, with a stronger focus on technical analysis.

Zanger Head and Shoulders Pattern

Live Chatroom

Active subscribers to The Zanger Report are also given access to the live chatroom. There are moderators in the room to keep things professional and many seasoned traders. The number of traders ranges from 300 to 450 throughout the market day. The purpose of this room is for the community of subscribers to share ideas and have access to real-time ideas and opportunities. The room is not as active as services like Investors Underground, but there are a lot of intra-day traders posting their trade entries and exits. The moderators keep it professional and will kick out disruptive members including penny stock pumpers.

Zanger tends to log in during the late mornings or early afternoons to provide some market commentary, update his analysis and answer questions. Members are basically on their own to either adopt new ideas for trades and manage their entries and exits or piggyback the trades some of the more popular trades in the room. Zanger does take the time to answer member questions, but rarely gives specific trade alerts. In this form, it’s a purely organic engagement with the community and Zanger seems fine with that. It goes without saying, do your own research before considering piggy backing off others.

Education and Training

There are no formal trading courses on the site. However, Zanger has free educational content ranging from chart patterns, recommended reading and resources to Dan’s 10 Golden Rules to get users acclimated. There is no hand holding on this site and members are expected to manage their own trades should they consider taking any recommendations. If you are looking for courses on technical analysis, you may consider Investopedia Academy.

Chartpattern.com Pricing Options

Chartpatterns.com offers a two-week free trial, which then reverts to the monthly recurring billing rate of $125-per month, unless cancelled. A quarterly pre-paid plan is offered at $360, which drops the monthly rate to $120. However, this option is only payable by check.

What Type of Trader is Chartpattern.com Best For?

This service is best suited for intermediate to advanced swing traders with a solid foundation of technical analysis. There isn’t much hand holding with specific trade alerts, so members must manage their own risk tolerance correlated trades. There are light tutorials on the site, but the reality is newbies can get lost quickly without the skill sets to manage trades and apply the appropriate sizing.

Since these are swing trades usually on the long-only side, smaller accounts under the $25k PDT rule limit and IRAs can be used. However, I would still recommend traders have well about the $30k account size to be able to play the higher priced momentum stocks, remain flexible and avoid any potential for margin calls or PDT violation. This applies to portfolio traders looking for higher risk/reward trade ideas with a solid grasp of risk management.

Is Chartpattern.com a Good Value?

Unlike so many other service, I like the simple nature of this site and the billing. At $125-per month, the service is a great value since it takes only a single good idea to pay for a year’s worth of newsletters. If anyone can find the proverbial ‘needle in the haystack’ opportunity before it goes parabolic, Dan Zanger has proven his talent for do doing just that for nearly 20-years.

Pros

  • Two-decade long history of reputable service
  • Consistent delivery and format of The Zanger Report
  • Chatroom access to Zanger and seasoned traders
  • Best suited for seasoned technical analyst traders and active investors
  • Excellent source of swing trading ideas
  • High quality picks with no penny stocks

Cons

  • Zanger’s own portfolio and positions are tough to follow accurately
  • Who still writes checks? (for the quarterly subscription)