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ng opinions, hopes, fears, and moods of market participants, need not be studied. 8 2. History repeats itself. ?History repeats itself, such that markets move in fairly predictable, or at least quantifiable, patterns. These patterns, generated by price movement, are called signals. The goal in technical analysis is to uncover the current market39。s potential in the opposite direction is measured by the distance from top of middle (head) to the base (neckline). This price distance is extrapolated from neckline at the point of breakout. 14 Double tops and double bottoms are reversal patterns consisting of two peaks with a price valley. To confirm pattern, prices must form a pullback (decline below and close below previously established low). To predict move size, measure height from high to low and project under beltline (Vice versa for double bottom) 15 Flags and pennants are continuation patterns, usually a pause in fast, or almost vertical, price movement. Flags are in the shape of a parallelogram, while pennants are very short triangles. 16 Broadening is a reversal pattern usually found at trend peaks rather than lows. 17 Triangles can be continuation and reversal patterns, this usually determined by the direction which they point. Confirmation is at breakout, and the strongest signals are when breakout occurs between 1/2 and 3/4 the triangle length. Ascending triangles: bullish Descending triangles: bearish Symmetrical triangles: neutral 18 19 Saucers are reversal patterns which are slow and rounding in form (at the end of a move). No clear breakout signals occur