{"product_id":"v19497100pri","title":"V.18:8 (94-97,100):Price Patterns, Part I by Martin J. Pring","description":"Price Patterns, Part I\nby Martin J.Pring\u003cbr\u003e\u003cbr\u003eThis veteran market analyst takes a look at the principles of\nprice formation, one of the basics of technical analysis.\u003cbr\u003e\u003cbr\u003eIn my recent articles, I have covered many basics of technical\nanalysis, ranging from peak and\ntrough analysis all the way to\nmoving averages. What I\nhaven't covered is one of the\nmost widely used concepts of\ntechnical analysis: price patterns. This time, I'll take a look\nat the principles of price formations, together with some of\nthe most common varieties. Next time, I'll examine one-\nand two-day patterns, because they can be extremely useful for short-term traders.\u003cbr\u003e\u003cbr\u003eIn most charts, you'll find that prices rarely reverse on a\ndime; rather, they experience clearly definable trading ranges\nprior to experiencing a trend reversal. Figure 1 shows such an\nexample. In the left-hand part of the chart, the price rallies and\nthen loses upside momentum as a battle between buyers and\nsellers gets under way.\u003cbr\u003e\u003cbr\u003eOften, it is possible to construct two horizontal trendlines\nto mark the top and bottom of the range. Every time the pric\nrallies to the upper line, buyers are scared off by the higher\nprice and selling pressure increases. Then, as it falls to the\nlower line, buyers are attracted,but sellers, who naturally\nwant a higher price for their goods, withdraw their offerings,\nso the price bounces again. Eventually, sellers win this battle\nas the price slips decisively below the lower end of the range.\nThe charting activity that separates the uptrend from the\ndowntrend can be contained by two parallel trendlines known\nas a rectangle.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133964513649,"sku":"\\V18\\C08\\075PRI.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_b88c5eb6-90e6-438a-90e7-3d3e4329914f.jpg?v=1739659108","url":"https:\/\/shop.traders.com\/products\/v19497100pri","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}