September 2012
Beginner
256 pages
5h 53m
English
After studying this chapter, you should be familiar with
• How short-term patterns can be used as a tool to identify reversals in longer-term trends
• The types of gaps that occur on bar charts and the significance of the various types
• Wide-range days and narrow-range days and their implications for volatility
• The formation and interpretation of the most common candlestick patterns
Short-term patterns are used to anticipate a sudden move, to take advantage of a period when prices have reached an emotional extreme, or to enter into a trend at an advantageous price as on a pullback or throwback. These methods usually have a setup. A setup occurs when certain known factors needed ...
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