• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 4. More Than Just Pretty Pictures: Power Tool Chart Patterns

Chapter 4. More Than Just Pretty Pictures: Power Tool Chart Patterns

The practice of maintaining charts of the movement of the stock market and of stocks is probably as old as the stock market itself. Certainly, the development of computer-based trading programs, online market-tracking programs, and the various financial web sites (not to mention the old-line stock market advisory services) have made stock market charts increasingly familiar and available to countless investors.

It is beyond the scope of this book to investigate the myriad forms of charting, such as point and figure and candlestick, that chartists use, or to attempt to evaluate the efficacy of the many charting alternatives available to chart aficionados. It is safe to say that interpreting stock chart patterns is almost certainly more an art than a science, and chart patterns frequently, if not generally, lend themselves to subjective interpretation that is more apparent after the fact than beforehand. Such caveats notwithstanding, I have found certain chart patterns to be quite useful in their implications. Before we move into the specific area of charting, however, it’s important to understand a very important principle for investing: synergy.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint