{"id":34825,"date":"2011-11-21T17:57:00","date_gmt":"2011-11-21T12:27:00","guid":{"rendered":"index.php\/2011\/11\/21\/technical-analysis-of-the-financial-markets-ch-5\/"},"modified":"2011-11-21T17:57:00","modified_gmt":"2011-11-21T12:27:00","slug":"technical-analysis-of-the-financial-markets-ch-5","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2011\/11\/21\/technical-analysis-of-the-financial-markets-ch-5\/","title":{"rendered":"Technical Analysis of the Financial Markets: Ch 5"},"content":{"rendered":"
\"Cover<\/a> <\/p>\n

Cover via Amazon<\/a><\/p>\n<\/div>\n

This is a review of the fifth chapter of John J. Murphy\u2019s Technical Analysis of the Financial Markets.<\/em><\/p>\n

Major Reversal Patterns<\/h3>\n

The 5 most commonly used reversal patterns are:<\/p>\n

    \n
  1. Head & Shoulders\n
  2. Triple Tops & Bottoms\n
  3. Double Tops & Bottoms\n
  4. Spike (or V) Tops & Bottoms\n
  5. Rounding (or Saucer) <\/li>\n<\/ol>\n

    Things to keep in mind while looking at reversal patterns:<\/p>\n

      \n
    1. A prior trend should exist<\/strong><\/em> (the market should have something to reverse)\n
    2. The first sign of impending reversal is the breaking of a trendline\n
    3. The larger the pattern, the greater the impending move\n
    4. Topping patterns are usually steeper and more volatile than bottoms\n
    5. Bottoms have smaller price ranges and take longer to build\n
    6. Volume is more important on the upside<\/li>\n<\/ol>\n

      We will examine each of the 5 patterns above in subsequent posts.<\/em><\/p>\n

      \n
      Related articles<\/h6>\n