Investigating chart patterns using Markov analysis by Curtis McKallip, Jr.
ARTICLE SYNOPSIS ...Investigating chart patterns using Markov analysis by Curtis McKallip, Jr.
Most traders, at one time or another, have utilized elementary price patterns such as trendlines,
triangles, gaps, and flags. The identifying characteristics and measuring properties of these patterns are
well known. Patterns also have predictive components and are usually divided into two classes:
continuation patterns and reversal patterns, depending on their most frequent chart positions. This article
tabulates a large number of transitions from one pattern to another and identifies the ones which are