Introduction

Confusion and uncertainty: the two common attributes of the stock market. The random short-term movements in public trading create a lot of confusion and certainly add to uncertainty among traders. A novice understands this reality, but even experienced professionals who have been trading for years suffer the same affliction.

This is where chart analysis becomes valuable. No one can claim a perfect record of timing buy and sell decisions, and no one realistically expects to beat the market with every trade. It is enough to beat the averages and to outperform the typical profit or loss experience ratio. For many, today’s profits are eroded by tomorrow’s losses, and so many individual traders find themselves seeking trades just to ...

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