CONTINUATION AND REVERSAL CHART PATTERNS BASICS

CONTINUATION AND REVERSAL CHART PATTERNS BASICS

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CONTINUATION AND REVERSAL CHART PATTERNS BASICS

Two basic tenets of technical analysis are that prices trend and that history repeats itself.

An uptrend indicates that the forces of demand (bulls) are in control, while a downtrend indicates that the forces of supply (bears) are in control.

However, prices do not trend forever and as the balance of power shifts, a chart pattern begins to emerge.

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