Stock Market Charts and Stock Chart Patterns

The purpose of reading stock market charts and stock chart patterns is to determine the probable strength of demand versus pressure of supply at various price levels.
The result of this is to predict the probable direction in which the stock will move and where it will probably stop.
There are millions of stock market participants, buying and selling stocks for a broad variety of reasons:
- hope of gain
- fear of loss
- hedging
- short-covering
- stop-loss triggers
- price target triggers
And there are many, many more.
The clues are provided by the history of a stock’s price movements, as recorded on the stock market chart. In the stock market, history repeats itself often. On the stock charts, price fluctuations tend to fall into a number of patterns, each of which signifies a relationship between buying and selling pressure.
Some stock patterns indicate that demand is greater than supply; others show the opposite and then some imply that they are likely to remain in balance for some time.
Stocks trace various patterns for reasons soundly based in human psychology-and it’s psychology that determines stock movements.
Reading stock charts, or stock market graphs, and chart pattern analysis can be used to make short term or long term forecasts.
The data can be:
- intraday
- daily
- weekly
- monthly
Stock patterns can be as short as one hour or as long as many years. Chart patterns can be open to interpretation, and other aspects of technical analysis should be used to verify or refute the conclusions drawn.
While many patterns may seem similar in nature, no two patterns are exactly alike. Careful and constant study are required for successful stock chart analysis.
If you commit, learning how to read stock charts can be a fun and exciting adventure!

For further in-depth information, this stock chart pattern course, provides step-by-step instruction on how to analyze and identify patterns that produce dramatic profits – trade after trade to improve your stock trading success.
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Two Pattern Groups
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Chart patterns fall into two main groups; reversal and continuation.
Reversal patterns indicate a change of trend and can be broken down into top and bottom formations.
Continuation patterns indicate a pause in trend and that the previous direction will resume after a period of time.
The following stock market charts and patterns will be reviewed in detail for you:
Reversal Patterns
Continuation Patterns
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Recommended Stock Chart Patterns Tools and Resources
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Recommended Technical Analysis Tools and Resources
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Recommended Technical Stock Market Software
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Winning Chart Patterns:
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Trading Classic Chart Patterns:

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