Identifying chart patterns is simply a system for predicting market trends and turns!
Hundreds of years of price charts have shown that prices tend to move in trends. 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:
- Double Top
- Double Bottom
