Chart Patterns Analysis

Market Cycle is Pattern of Human Behaviors (Buyers and Sellers) and repetitive in given situation;

The switching of market emotions from optimism to  pessimism over certain time period tends to repeat itself again, thus produce similar patterns in the market cycle. In stock markets, the patterns repeat over and over again that allows you to build a trading system to trade these repeating formations.

Chart Patterns reflect human behavior, which tends to be repetitive. Economic conditions may change, interest rate may rise or fall, but human reactions to events are somewhat predictable. This is why a chart pattern from 50 years ago is just as relevant as the same chart pattern today. Time and technology may change, but human behavior changes very little. Chart patterns repeat themselves because people react reflexively over and over again. If met which a challenge, human beings well exhibit similar responses to that challenge no matter what their nationality. This is why technical analysis works in markets all over the world-no matter what you are trading.

This lead to another important topic of technical analysis; Technical chart analysis or chart patterns analysis, chart pattern analysis is one of the technical analysis tools that help you to reveals the secrets of stock market investing. When the fundamental look good, chart patterns signal whether a stock is in bullish, bearish, or neutral mode before you pull the trigger. You do your fundamental analysis on a stock, and bought it to watch it go nowhere for a year or more where you can park your money somewhere else to earn better return rate. Even worse, once you buy in, the stock tumbles. If you looked at the chart the answer was always there.

To knowledgeable investors, chart patterns are footprints of the smart money and they need to follow, chart patterns analysis give an investors a tools to spot the trend. Use them wisely to bring you the greater wealth.