After studying this chapter, you should be able to:
Traditional charting is a two-dimensional matrix upon which technical data or information is viewed. It affords the practitioner a means of tracking technical data in a meaningful way, revealing various repetitive price patterns behavioral traits and market volatility. In addition, charting also clearly reveals price distortions and il-liquidity in the market. It allows for the application of technical analysis such as the drawing of trendlines, channels, envelopes, and chart patterns on price, helping to uncover important price reaction levels, which are driven by the consistent underlying psychology and perception of all market participants. In this chapter, we shall cover the basics of chart construction and how technical data is displayed.
There are many ...