Chart Patterns - The Basics

Chart Patterns - The Basics

To be profitable in today's world technology and advancement, one must be proficient and reading and more importantly understanding chart patterns and basic technical indicators. Below are just a few basic points to help your understanding of technical analysis and currency chart reading.

Volume

Four easy rules to follow regarding Volume: 1. When prices are rising and volume is increasing, prices will continue to rise. The uptrend is being confirmed.
2. When prices are rising but volume is decreasing, the uptrend is losing momentum and may be near the end.
3. When prices are falling and volume is increasing, prices will continue to fall.
4. When prices are falling and volume is decreasing, the downtrend is losing momentum and may be near the end.