By the end of this chapter, you should be familiar with
• Controversy over whether patterns exist
• The influence that computer technology has had on the study of patterns
• The formation of classic bar chart patterns such as triangles, flags, pennants, double tops, and head-and-shoulders
• Historical performance measures of major bar chart patterns
In the next three chapters, we discuss chart and price patterns. Traditionally, technical analysis has been closely associated with price patterns, perhaps even more than it should be. Prior to the advent of the computer, hand-drawn charts of prices were the only technical resources available. Trend lines and patterns were the principal means ...