Three Ways to View Price Patterns

Price Patterns are simply the patterns of a security’s price movements for a known timescale. There are three main ways of viewing price action for any period of time:

  1. Simple line graphs

  2. Bar graphs

  3. Japanese Candlesticks

Chart 4.1.1. Simple daily line chart of NASDAQ (July 2000–January 2001).

TC2000®.com. Courtesy of Worden Brothers Inc.

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In itself, this chart is fairly meaningless, although you can clearly see that the price has halved within just four months from the beginning of September 2000 to the beginning of January 2001. Just by looking at this simple chart, we can already see one ...

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