Encyclopedia of Chart Patterns

More about the book

Technical chart analysis has historically been successful for dedicated investors looking to predict stock movements and outperform the markets. This definitive text details over 50 chart patterns that indicate whether a stock is bullish, bearish, or neutral. Each pattern is identified, explained, and analyzed to forecast its future movement. Investors can filter this information through their own trading styles, identifying optimal entry and exit points to trade with confidence. The chapters provide a comprehensive overview of each pattern, including a Results Snapshot with data on appearance, average rise or decline, failure rate, and price prediction accuracy. A broad introduction to the pattern is followed by Identification Guidelines that outline key characteristics and their significance. The text also focuses on failed patterns, explaining their characteristics and reasons for failure, along with corresponding strategies. Statistics offer insights into the numbers behind the patterns, while Trading Tactics provide strategies for maximizing profit and minimizing risk. Sample Trades illustrate the patterns in action, using real data for hypothetical trades. With the right knowledge, chart pattern analysis becomes a valuable investing tool, enhancing the likelihood of buying near price bottoms and selling near tops, ultimately saving time and increasing investment success.