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A pattern can also be a recurrent graphic repetition. In this case, the creative trader’s mind must have taken over, meaning that identifying too many levels equals none at all...
«Leave now and then the beaten path, enter the woods.
There is certainly something that you've never seen before.
it may be a small thing, but do not ignore it.»

(Alexander Bell)

The name itself says it all: pattern of prices. Pattern means literally template. When a Technical Analyst speaks of price patterns, he means micro models able to communicate, more or less clearly, the real power ratio between buyers and sellers. That's it. The patterns are not forecasting models of the future market price but, rather, they are an excellent communicator of intentions; something like on 'how to analyze the voting intentions in a poll.

Patterns are very different amongst themselves. There are so many types, and they can be traced in:

The Candlestick Patterns are widely covered in section Analysis Candlestick, along with major basic formation guidance. The discretionary graphic patterns include graphic signs, real configurations which are not objectively identifiable; they are, as a fact, "discretionary". Finally, non-discretionary graphic patterns or set-ups are clear indications that leave no room for doubt about their occurrence. Many of these set-ups see the candlestick chart as protagonist.



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