An Introduction to Chart Pattern Analysis

The most common of techniques within technical analysis being the analysis of chart patterns – essential for determining price signals, namely whether movements will be bullish, neutral or bearish. Although the results of chart pattern analysis does not guarantee exact results, it serves as a good foundation for price predictions and should be in any trader’s arsenal. An Introduction to Chart PatternsChart patterns form the foundation of technical analysis, given that they serve as distinctive formations generated by movements of chart prices. Before going into the details of chart patterns, it is important to have a good understanding of trendlines within technical analysis. Setting up your chart for observationsIn order to set up a chart for pattern analysis, it’s important to define the timeframe for the analysis.