Price Patterns, Part II by Martin J.Pring
This veteran market analyst takes a look at the patterns of price formation.
Last time, I covered the basics of chart patterns using rectangles as an example. This time, I will expand on the subject by taking a look at several different patterns.
To recap some of the major points:
1. Price patterns are clearly definable trading ranges that form on a chart. There are two types óreversal and
2. The significance of a pattern is relative to its size; the
longer it takes to complete, the more significant the formation is.
3. The minimum ultimate measuring objective for a price pattern is obtained by calculating its maximum depth at the breakout point and projecting it in the direction of the breakout.