Trends can be identified through patterns on charts from "summary" of Charting and Technical Analysis by Fred McAllen
Charting is more than just plotting numbers on a grid. It is about understanding the story that price movements are telling us. By analyzing patterns on charts, we can uncover trends that help us make informed decisions about when to buy or sell an asset. Patterns on charts are not random occurrences. They are a reflection of the collective psychology of market participants. When we see consistent patterns forming on a chart, it is a signal that there is a trend at play. Trends can be identified through the repetition of certain patterns, such as higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. Rec...
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