I was going to end my "How to Read Charts" series this past Wednesday, but then reader Raymond Usher asked for just a few more words on those neat things I talk about like "blow-off bottoms," "V-ish" moves, parabolic rockets and a few other GBS-invented, and non-GBS invented catchphrases. (In truth, there are no such things as GBS-invented catchphrases. I proudly admit I stole everything, and credited no one!)
Therefore, for Mr. Usher's benefit -- and for all those who need a refresher on GBS Charts -- here are a few of the patterns I refer to throughout my Friday, Saturday and Sunday columns.
The Pullback
The Breakdown
Excessive "V"
Breakout From Congestion
The Blowoff Bottom
The Parabolic Move
Again, nothing tricky, nothing confusing, and everything is pretty straightforward. Best of all, recognizing these basic patterns and the few rules from last week's
two-parter, is all you really need to do a solid job of analyzing charts.
And that's something to remember when you get enamored with a multitude of indicators, oscillators, bells and whistles. Those extra signals may look jazzy, and make you feel like a "professional" technician. But, they rarely help you trade any better and may even bog you down.
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Gary B. Smith
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