False Breakouts and Breakdowns: Key Market Patterns
False breakouts and breakdowns often precede dynamic market declines and advances. Here are two more very powerful chart patterns that frequently indicate the likelihood of a dynamic stock market advance or decline (the direction depends on the sequence of events).
The patterns are simple. In the first case, the following sequence develops:
A Significant Sell Signal
The most significant sell signals often take place following market advances that appear significant and favorable at first, but that rapidly fail. In this regard, you may want to recall that every major market decline originates from a market peak and that every bull market originates from a significant market low point. Here ...