What the new chartist needs always to remember is that a continuation pattern is never set in stone.
In the 1980s, while working as a junior chartist , Prechter stumbled upon the work of Ralph Nelson Elliott.
If a chartist draws a horizontal line at what appears to be the resistance at $15, the resistance may not be broken as the stock price moves to $16.
You can see that, by changing the number of days or weeks as a time frame, the chartist can better determine the direction and duration of the trend.
Therefore, a chartist can look at the absolute-breadth index and determine the activity level of the market, determining the stability of market movements.
The chartist , however, must establish how many price units make up a box, which is how much the price must move in the opposite direction for the chart to begin a new column.
The chartist will look for an increase in the trading volume as the key indication that new highs will form.
David Linton, a chartist and chief executive of an investment consultancy, believes investors can expect to see an upturn by October.
Oil has twice pushed to the mid-fifties range and sold off violently, leading many chartists to assume that a double top is forming.
Technical analysts - also known as chartists - try to figure out whether prices will go up or down by looking at patterns in graphs of recent prices.