LONG-TERM CHARTS & LAUNCHING PATTERNS
Stock prices are either in a follow through trending phase or in a consolidation phase. During a strong trending period, a stock will proceed from one price level to another with very little interruption. During a consolidation period a stock will move in both directions without producing any meaningful or sustained price change.
During periods of consolidation prices tend to form a recognizable chart pattern which helps us to determine the direction and magnitude of the next substantial trend with some degree of accuracy.
Because price action and chart patterns are a result of human interaction, it is possible to find those repeating chart patterns in different markets, in different time frames such as on daily, weekly and monthly scale and in different time periods.
