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Introduction to Chart Mode There are thousands of city market participants buy and sell securities for a variety of reasons: profit of hope, fear of loss, tax consequences, short, hedging, stop-loss triggers, price target triggers, fundamental analysis, technical analysis, Broker recommendation and so on. Trying to figure out why participants buy and sell can be a difficult process. The chart mode integrates the forces of supply and demand into a concise picture, thus bringing all purchases and sales into the field of vision. As a complete graphical record of all transactions, the chart mode provides a framework for analyzing the fierce battle between longs and shorts. More importantly, chart patterns and technical analysis can help determine who is winning in this battle, so that traders and investors can position themselves accordingly. In many ways, just a more complex version of the chart pattern trend line of this. Before continuing, be sure to read and understand our articles on support and resistance and trend lines. Chart pattern analysis can be used to make short-term or long-term forecasts. The data can be intraday, daily, weekly or monthly, and the pattern can be as short as one day or as long as many years. A trading session may form a gap and an external reversal, while the widening of the top and the dormant bottom may take several months to form. This Amazon ( AMZN ) head and shoulders pattern took 7 months to form. On the other hand, this CIENA ( CIEN ) chart pattern was formed in one day. Oldies But Goody I have understanding for most chart patterns can be attributed to Richard Schabacker work. His 1932 year classic "technical analysis and stock market profits" as the foundation of modern pattern analysis. In "Technical Analysis of Stock Trends" ( 1948 ), Edwards and Magee consider Schabacker to be most of the concepts presented in the first part of the book. We would also like to thank Schabacker , Edwards and Magee Mr. and John Murphy husband is a driver of these articles as well as our understanding of chart patterns. Pattern analysis may seem simple and straightforward, but it is by no means easy. Schabacker pointed out: <box 80 % > However, the science of chart reading is not as easy as just memorizing certain patterns and pictures and reviewing them as commonly predicted. Any general stock chart is not numerous different modes of combination, the accuracy of the analysis depends on continuous research, long experience and knowledge of technical and fundamental of all the fine points, in particular, to weigh the conflicting instructions, according to its The most detailed details to evaluate the entire picture, and can identify any specific and memorable formula. </ box> Even Schabacker referred to " chart reading science " , technical cytometric analysis may sometimes be less scientific and more artistic. In addition, pattern recognition may be affected by interpretation, which may be affected by personal bias. In order to resist prejudice and confirm the interpretation of the model, other aspects of technical analysis should be used to verify or refute the conclusions reached. Although many modes seem similar in nature, no two modes are exactly the same. Wrong breakthrough, virtual fake part reading and exception to this rule is an ongoing education.
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