2
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.
Introduction
Classical technical analysis is about using charts ...
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