History has a habit of repeating itself

What topics are covered in this chapter?

Reversal patterns are various types of exhaustion patterns derived from the prevailing trend and initiation of a new trend in the opposite direction. They include:

  • head and shoulders
  • tops and bottoms
  • rounded top and rounded bottom
  • V spike top and V spike bottom
  • wedge reversal

Continuation patterns are various types of congestion phase that occur within long-term trends:

  • triangles
  • pennant
  • flag
  • rectangle

What are the objectives?

The objectives of pattern recognition are manifold:

  • To know what the old school classical chartists are doing.
  • To estimate the projection levels for repeating patterns.


Classical technical analysis is about using charts ...

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