Momentum Further Resources Macro-economic charts See current charts and analysis of economic indicators, such as GDP, CPI, etc. Moore Historical Reports Chart books providing historical price analysis, seasonality and trading strategies for cattle, hogs and lumber. Book Picks Encyclopedia of Chart Patterns by Thomas N. Bulkowski. 0965046109 Click here to see entire catalog. Chart patterns are hills and valleys, patterns, shapes and curves that develop over time on a chart and which are found to have predictive value for future market direction.
Patterns can either indicate a reversal or a continuation of an existing trend.
Reversal patterns often take a long time to form on the chart and represent major changes in trend. The larger the pattern, the greater the potential price movement. The height of the pattern measures volatility, while the width measures time required to complete the pattern. Continuation patterns suggest that a market is only pausing for a while before the prevailing trend will resume. I've found that these patterns are great representations of mathematical indicators.