V.18:4 (28-34):Replicharts by Zack Hill

Chart Patterns That Repeat

Replicharts by Zack Hill

Certain chart formations can forecast major trading activity. Take a look.

Answer me this. If we can accept that established patterns occur in cloud formations, crowd psychology, and criminal behavior, why can’t we also accept that stock charts have patterns that repeat with similar reliability? Since stock charts display the buying and selling of a crowd, why not assume that reactions to certain events would be quite predictable, just as they are in our everyday lives?

Here’s an example. My wife and her mother went shopping one morning recently. They pulled into the parking lot and immediately noticed two things: First, they saw that the store hadn’t opened yet. Second,they observed that there was already a crowd waiting for the store to open. This was unusual, so, curious, they joined the crowd and waited, sensing something really good must have been advertised that they weren’t aware of. Asking no questions (for fear of appearing to be out of the loop), the two followed the other shoppers when the store finally opened, to a big display of a specially marked item. Within 10 minutes, the item had sold out completely, including the one that my wife bought, thanks to those patient early shoppers!