This is the third in a series of education posts from Alan Hull. Alan Hull is a renowned technical analyst within the Australian Market. He has educated thousands of investors on how to apply technical analysis within their overall strategy. In this special series, Alan has agreed to share his Technical Analysis tutorials with Stockopedia members. He has committted to provide one ever three weeks. To learn more about Alan you can read his profile here. Or visit his website alanhull.com.au
To re-acquaint yourself with Alan's prior postings, please go to “Discuss” in the left hand column and selecting “Aus/NZBlogs” (see below)Pattern RecognitionWhat makes a MarketA market can only exist when there is agreement on the sale price (in order for a transaction to take place) and disagreement on the current or future value of the asset being traded. When there is agreement on value there is no market. Disagreement on value is usually created because of the difference in peoples perspective or opinions. This point is illustrated clearly in example 2, below…
Example 1
There is general agreement that a $50 note has a value of $50. Because of this agreement in...
