Chart patterns Once a bar chart has been constructed over time various patterns appear. Each tells a different story and some are more valuable than others. Support and resistance patterns work quite well because investors have the tendency to remember past stock prices. There are some very good psychological reasons behind each pattern and why they work. You can find more extensive material on this subject in our Technical Analysis pages.
Indicators only work well in one type of market, trending or non-trending.
None of them work particularly well in both environments. Moving averages can be a help in determining the market trend. Support and resistance Suppose a stock is declining and at a certain level it starts to rebound. What happened is that buyers were waiting to buy at that price. The stock now starts to climb because buyers are stepping in.