10. Chart Patterns—When the Market Is Changing Its Mind
“A correction is when you are losing money. A bear market is when I am losing money.”—William Noble, Research Director, Logical Information Machines
If some chart patterns are merely a rest stop for the market, others are turning points. If you already own a position in the market and one of these patterns form, it is probably time to consider selling. Remember, this is the time to prepare, not to execute. Chart patterns must be allowed to break before you act. True, you will not buy the low or sell the high but those points in the market are for the professional who is very closely tied to the action.
In this chapter, we will learn to recognize patterns that usually form at ...