Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

Conclusion

Many of the patterns examined in this chapter were imperfect and, based on the time frame of the analysis used (daily over several months), some losses were produced. This is a much more likely scenario in the markets than any textbook case. The key is to be able to recognize a wrong trade early and to see the bigger picture of the long and short term together. Technical patterns are rarely crystal clear because some market participants do not wait until they complete before acting. This forces patterns to distort slightly, even though the general meaning is not changed.