Chapter 15. Bar Chart Patterns
By the end of this chapter, you should be familiar with
• Controversy over whether patterns exist
• The influence that computer technology has had on the study of patterns
• The formation of classic bar chart patterns such as triangles, flags, pennants, double tops, and head-and-shoulders
• Historical performance measures of major bar chart patterns
What Is a Pattern?
A pattern, or formation, is a configuration of price action that is bounded, above and below, by a line or curve. All patterns have an entry that describes the trend preceding the formation and an exit, which is often a signal for action.
Do Patterns Exist?
Technical analysts believe that patterns exist. However, ...