The main task of this paper is to show the results of stock market trading strategy based on short term chart pattern. Proposed short term chart pattern is a trend following pattern and is relative to fractal formations and chaos theory. The proposed trading strategy consists of two steps: on the first step the stock screening algorithm is used to select volatile stocks in Nasdaq Biotechnology market; on the second step technical analysis and mathematical calculations for selected stocks are applied and profitability of strategy is calculated. The proposed trading strategy based on short term chart pattern was tested using historical data records from the USA Nasdaq Biotechnology market (2008-2010). The trading strategy applied in Biotechnology stock market had given higher returns if compared to the main USA stock market indexes (Dow Jones, S&P, Nasdaq).
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