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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: moorso who wrote (2592)	5/16/2002 1:04:19 AM
From: Chip McVickar	Respond to of 207526

Hope this is useful...? The formation of individual bars and then the combination of bars into patterns is by far the most important aspect of any price chart. To me they're the best indication of where investors brains are taking them. So when the market reaches a median line or fib target or a trend line the bar activity gains greater importance. Reversals of trend can be done in one bar spikes or in patterns. Here's a classic double top. stockcharts.com Triple Tops: stockcharts.com IMO these patterns become "W" 's and at tops become "M" 's and are far more important then the flukie "head and shoulders." There are variations, and the articulation of lows as well as the highs in the pattern are valuable clues, are they walking higher, lower or flat...? They can occur on any chart time frame. In the futures and commodity markets "fear" developes faster at the top of moves reaching higher, were as at bottoms the "W" form slower. Futures prices have a tendency to back off and down quickly from a previous peak as the struggle for position is determined, and stops are cleaned up...., but who wins these struggles is told in the bar patterns and this tells a lot about trend strength and reversal power. So the way the pattern forms is important. These "W" and "M" 's form often.., and they can turn into triangles, platforms, flags, pennants, diamonds and coils, but learning the signals as to how they break and/or turn into continuation patterns is a fascinating study. It is a graphic Art Form that matches visual signals with intuition.