Identifying Significant Chart Formations by Daniel L. Chesler
ARTICLE SYNOPSIS ...Before computers became commonplace, technical
traders spent most of their time studying their charts,
looking for consolidation and reversal patterns. Today,
many traders have moved away from using
classic chart patterns to methods based on quantifiable
indicators. Here, the two disciplines are combined,
using chart analysis and basic indicators to
identify trading opportunities.
Despite the growth in mechanical
systems trading over the past
decade, classical chart pattern
analysis continues to enjoy a
wide following. For example,
Robert Edwards and John Magee's Technical Analysis
of Stock T...