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The Charts Never Lie!

When analyzing charts, we look for patterns — i.e., objects or shapes that call to mind an image of a similar event in the past. Because patterns repeat, we can use them to determine the probability of a certain outcome.

Technical analysis helps us distinguish between what is real and what we think is real. As I always say, "The charts never lie."

Technical analysis is full of patterns, most aptly named for the type of shape they make. I'm going to describe a few of the more common bullish chart patterns that indicate that a stock is about to head up.

The following will give you a solid grasp of the basics you need to become a pro at reading these chart patterns.

NEXT: Bullish Chart Pattern #1