ARTICLE SYNOPSIS ...Cycles, Volatility, And Chart Formations by Daniel L. Chesler, CTA, CMT Understanding the building blocks of classical chart patterns can improve your analysis and trading results. Here's how. A nyone who has studied or traded with classical chart patterns for several years knows the unmistakable feeling when a good pattern develops. The better patterns tend to stand out from the marginal ones, regardless of their shape or classification. This led me to realize that it was the similarities between chart patterns that were important, rather than the differences as defined by pattern names suc...
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...