After studying this chapter, you should be familiar with
How short–term patterns can be used as a tool to identify reversals in longer–term trends
The types of gaps that occur on bar charts and the significance of the various types
Wide–range days and narrow–range days and their implications for volatility
The formation and interpretation of the most common candlestick patterns
In previous chapters, we have looked at longer–term patterns in bar charts and point–and–figure charts. We now turn our attention to short–term patterns. In this chapter, our focus is on short–term patterns on bar charts and candlestick charts. These patterns concentrate on the configuration and characteristics of individual ...