"Chart Pattern" Posts
Rising and Falling Wedges
By Lawrence
Part of Art of Chart Reading Rising and falling wedges are chart patterns leading to violent breakouts. Most of the time, the breakout direction is opposite to the direction of the wedge. Hence, they are often named as reversal patterns although that is not necessary true. Rising wedges are also known as upside wedge or […]
Head and Shoulders, Not The Shampoo
By Lawrence
Part of Art of Chart Reading People often talks about the head and shoulders formation. I have seen many websites showcasing charts after charts that are NOT head and shoulders at all, although they claim so. It is not a good idea mixing up price patterns as that will confuse you and negatively affect your […]
1-2-3 – The Foundation of Potential Change in Trend
By Lawrence
Part of Art of Chart Reading Summary If there is only one chart pattern you are allowed to learn, 1-2-3 is the one. 1-2-3 is often a reversal pattern that marks the termination of a trend. The pattern is made up of 3 swings where the first and third swings are pointing to the opposite […]
Essential Chart Patterns
By Lawrence
Part of Art of Chart Reading Here is the core set of chart patterns I find essential to get a grip of any markets I follow. Each pattern that has an article written to explain how it works will be linked to the article. Not Just Another Site with Chart Patterns
Introduction to Chart Reading
By Lawrence
Two opposing views on chart reading dominate the trading world and the public in general. Many people think that price charts are just fancy presentations of historical price data that has no real analytical value. Others take chart reading seriously think that it is all they need to figure out the near future of the […]
Wyckoff Up Thrust / UpThrust
By Lawrence
Part of Art of Chart Reading Summary Wyckoff Up Thrust (a.k.a. Wyckoff thrust, w. thrust) is a terminal pattern for an uptrend. It is not a type of false breakout. It is not double top or other classic topping formations. Wyckoff Up Thrust is unique in terms of its characteristics and strength in its expected […]
Gap (Up) and Go Failure
By LawrenceOne very reliable pattern showed up today (Jun 13, 2011) in Emini S&P that worths a more detailed explanation. The Setup Market down more than 2 to 3 percent from previous month close Market gap up but within previous day trading range Tried to gap up and go (i.e. rally off open at once) but […]
Measured Move (a.k.a. 1-to-1 Swing, ABCD Move)
By Lawrence
Part of Art of Chart Reading Summary Measured move is a name given to a highly structured price movement that consists of 2 swings in the same direction with a pause in-between. The 2 swings are supposed to be very similar to each other, meaning that the time spent and price travelled by both swings […]
