The sole purpose for any kind of charting is to be able to identify trend formations, to point out recurring historical support and resistance areas and to apply these patterns in an attempt to predict future price movement. If price can be predicted, there should be a reasonable chance to realize profits, or at least limit losses. Of course, investor need to be reminded that past performance of the market does not guarantee future performance. If this were possible then all who trade would be rich beyond their wildest dreams. Investors are reminded of the risks associated with trading stocks.

Chart Center will give you some definitions of terms and basic chart formations commonly used in technical analysis. While it is impossible to explain every possible chart, Chart Center will attempt to review the basic terminology and the more prominent formations.

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