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
In previous chapters, we looked at longer-term patterns in bar charts and point-and-figure charts. We now turn our attention to short-term patterns. In this chapter, our focus is on short-term patterns on bar charts and candlestick charts. These patterns concentrate on the configuration and characteristics ...