By the end of this chapter, you should
Know why identifying trends is paramount to profits in securities
Be able to recognize an uptrend, downtrend, and a trading range
Understand the concept of support and resistance
Be familiar with the major methods of determining trends
Be familiar with the major signals that a trend is reversing
We are now entering into the more controversial aspects of technical analysis, the analysis of trends, and in Part IV, “Chart Pattern Analysis,” the analysis of patterns. This is the “fuzzy” aspect of technical analysis that discourages most students very quickly because none of the observations or rules is specific. Rules in technical analysis come from many, many observations ...