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The premise for this blog is that patterns, shapes, which appear in stock charts, may have predictive value. These shapes represent events in the stock market, in the market for one or another stock. One day people bought the stock at some price, and other people sold the stock at that price, and another day people sold the same stock at twice that price, and other people bought it from them at that price. Things like that.

Assembling a sequence of such events, we might see the going price falling, for a period of weeks, then jumping upward for a few days, or even just a day, then gradually falling day after day for many weeks, extending into months. When prices initially fell, and then jumped up again, a bottom formed. That's a shape in the chart, and it represents a period of time during which the stock traded at some low price, preceded by a period of time during which it traded at various higher prices, and followed by a period of time during which it traded at higher prices. The bottom has a level in the chart, and there is a price associated with that level. After the price jumps up, and begins to fall again, a top forms in the chart. It is a shape in the chart, associated with a price. As prices gradually descend again, they again approach the bottom, and then they begin to climb again, and eventually they return to the top.

It is best, I think, that a post not be excessively long, and I'm wary of pages with many posts on them, too, so I'm setting up this blog to show one post at a time. If you would like to look at a long page with many posts on it, you can do that by clicking one of the months - or perhaps even a year - in the blog index in the right hand side bar. For now, look for the "newer post" link, below, and click that to see the next post.