Technical Analysis Course - Charting

The chartist is always concerned with his ability to recognize the commencement of either a congestion area, a trend, or a trend reversal. So long as the trend line remains valid the market continues to parade in a succession of highs and lows. And, the prevailing trend is assumed to be intact. The penetration of a trendline cud raise the possibility of a reversal. The downside penetration of an uptrendline cud carry a bearish implication.

In the reading of any chart formation, it is important that the underlying explanation of what is happening is held in mind. The “floor”,”ceiling”,”random walk”,”trending”,”discounting”, all help in the interpretation of charts.

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