Dancing with the Trend

November 2014

Dancing with the Trend

On Trendlines

by Greg Morris

The goal of this article is to make you stop and think, nothing more. I cannot recall seeing someone’s chart purporting to divine the market that did not have at least one trendline drawn on it.  The ubiquitous trendline is prevalent in almost everyone’s work, so much so, that even the talking heads on financial television are drawing them on charts.  Clearly they believe that connecting two points is sufficient to generate information.  Over the years I received a lot of chart analysis sent to me by many I do not know seeking my opinion on their analysis.  It is clear Read More 

Dancing with the Trend

Are you Using Chart Patterns Correctly?

by Greg Morris

After I did the research for my book “Candlestick Charting Explained,” originally called “Candlepower” in 1991, I realized that many were looking at patterns incorrectly. This included candle patterns and classical chart patterns.  This was first noticed in a few academic papers attempting to show that these patterns did not have any predictive ability.  Let me show you an example of what I am talking about.  Consider the following chart: Chart A If I asked you what the data in Chart A looked like to Read More