文档介绍：CHART PATTERNS
TECHNICAL TREND ANALYSIS & CHART PATTERN RECOGNITION
Identifying chart patterns is simply a system for predicting stock market trends and turns!
Hundreds of years of price charts have shown that prices tend to move in trends. (I'm sure we've all heard the
saying, 'the trend is your friend'.) Well, a trend is merely an indicator of an imbalance in the supply and
demand. These changes can usually be seen by market action through changes in price. These price changes
often form meaningful chart patterns that can act as signals in trying to determine possible future trend
developments.
Research has proven that some patterns have high forecasting probabilities. These patterns include: The Cup
& Handle, Flat Base, Ascending and Descending Triangles, Parabolic Curves, Symmetrical Triangles,
Wedges, Flags and Pennants, Channels and the Head and Shoulders Patterns. In my opinion, these are some
of the best patterns to trade.
This section is designed to introduce you to some of these chart patterns, as well as teach you to identify
repetitions in the market qualities, to make timely and more accurate decisions when predicting market trends.
THE CUP & HANDLE PATTERN
The Cup & Handle is the corrective action after a powerful
stock advance. Generally a stock will have a powerful move
of some 2 to 4 months, then go through a market correction.
The stock will sell off into the correction in a downward
fashion for maybe 20 to 35 percent off the old high point.
The time factor is generally anywhere from 8 to 12 weeks
depending on the overall market condition.
As the es up to test the old highs, the stock will
incur selling pressure by the people who bought at or near the
old high. This selling pressure will make the stock price drift
in a sideways fashion with a bias to the downside for about 4
days to 3 weeks.
The handle is generally about 5% below the old high point. A handle that is any lower is generally a
def