Identification of chart patterns may reveal the future market behavior basing on the assumption that the way the market forces interact does not change significantly with time and may be analyzed on the historical charts. As a complete pictorial record of all trading, chart patterns provide a framework to analyze the battle raging between bulls and bears. What is more important, chart patterns and technical analysis can help determine who is winning the battle, allowing traders to take a proper market position. It may be observed that chart patterns constitute a more complex variation of trend lines
Monday, September 14, 2009
Technical analysis - analyzing the chart patterns
Technical analysis - analyzing the chart patterns
Identification of chart patterns may reveal the future market behavior basing on the assumption that the way the market forces interact does not change significantly with time and may be analyzed on the historical charts. As a complete pictorial record of all trading, chart patterns provide a framework to analyze the battle raging between bulls and bears. What is more important, chart patterns and technical analysis can help determine who is winning the battle, allowing traders to take a proper market position. It may be observed that chart patterns constitute a more complex variation of trend lines
