"Art Of Chart Reading" Posts

Part of Art of Chart Reading Channels is an interesting structural behaviour with non-random price movements. With purely random generated data series, channels rarely show up. It is one of the most important evidence that real market data are not random. Channels essentially are extended usage of the trend lines. The way that price is […]

Part of Art of Chart Reading Pockets have a very special position within the core set of chart patterns. Unlike any other chart patterns, pockets are not defined by what is being there but what is missing. Pockets are very powerful price magnets often ignored by chart readers due to their subtle existence. Pockets can […]

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 […]

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 […]

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 […]