Everyone who buys a stock thinks it's going up. And
everyone who sells to those buyers thinks it's going down.
But it is the imbalance between Buyers and Sellers that
causes price to change. The larger the imbalance the bigger
the change.
Price change is seen by the market and creates more price
change, which creates patterns of human behavior that we
call Chart Patterns. Because human Buy & Sell decisions
around money are fairly consistent, these patterns can be
"Greed and Fear"
From: jrotman.wordpress.com
predictive of what the market will do next.
If sudden buying causes a "gap", the odds of an additional
price rise are high because more buyers will react to the
gap and start buying. If price approaches a "support level",
buying will increase on the anticipation of a price rise,
because of the mere existence of the support level.
In this course, we will become familiar with all the
important Patterns, learn which ones to pay special
attention to, and how to profit from this knowledge.