Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

Markets Are Scalable

One of the more useful aspects of the markets is that similar patterns seem to occur in all time frames from the minute-to-minute pace of day trading to the year over year changes sought by long-term investors. In other words, the patterns and other tools chart watchers use to analyze one time frame can be easily employed to analyze another. Further, they can be used in all markets, from stocks to currencies, albeit each does have its own personality that must be addressed.

So, if we take the labels off any chart, leaving only the price action, we still should be able to render at least a basic analysis of what is going on. Again, there are some differences across time frames and across markets, but the theories on which ...