Stock Chart Patterns.
Price chart is the result of activity of all market
participants. It reflects periods of high expectations,
greed and fear. As most emotional human activities, it
presents different patterns. Chart analysis and pattern recognition provide
useful information for technical analysis, trend analysis and market
timing signals for technical trading.
Trendlines and chart patterns can be analyzed in different time
frames: from intraday, daily and weekly frames, up to
multi-year patterns. It is the best practice to
analyze patterns in conjunction with other technical
Each price pattern is formed by several smaller sub
waves. At least 3 – 4 sub waves are required to perform
a reliable pattern screening. We use minimal required number of sub
waves for an earlier pattern recognition screener. On the other
hand, pattern formed with more sub waves is more