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Chart Formation

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Chart Formation
The graphical representation on a chart of a trend in security prices. Technical analysts identify chart formations for a security and predict future price movements in part by matching current patterns with previous patterns.

chart formation
A series of graphed stock prices or other market variables that form a recognizable pattern that may be used to determine future movements of the charted variable. Chart formations are not always as clearly defined as their users would like; thus, the ability to recognize and use charted data varies among technicians. Also called formation, pattern. See also inverted formation.


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Summary: The Australian Dollar has broken key support against its US counterpart at the bottom of a Rising Wedge chart formation that we identified last week.
In fact, the fundamental story may be strong enough to break gold out of the bearish chart formation, hurdle it over resistance at $965, and launch it toward the February high of $1,000 per ounce.
Price action means the change in price of your stock and whether or not its chart formation still conforms to your initial expectation.
 
 
 
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