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

5. Technical Analysis > Look for Patterns in Technical Charts

Look for Patterns in Technical Charts

Studying price charts for patterns helps you identify future price movements that you can translate into profits.

Over time, people who studied charts noticed that when prices generated specific patterns, the price action that followed was usually the same. Through the first half of the previous century, technical analysts studied and analyzed charts to increase their knowledge of chart patterns and the price actions that those patterns predict. Although some analysts have used computers to develop sophisticated, complex indicators that they claim replace the need for studying chart patterns, some tried-and-true chart patterns remain unchallenged. By learning to recognize these patterns and what they prophesize, you can identify potential price changes and prepare to take appropriate action, whether it be a purchase to achieve a profit or a sale to protect your portfolio.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


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