Murphy emphasizes volume confirmation when analyzing these patterns. A breakout from a pattern lacks validity unless accompanied by an increase in trading volume.
The fluorescent lights of the trading floor hummed, but for Elias, the real noise was in the candles. Red and green wicks flickered across his monitors like a digital heartbeat. He wasn’t looking at company earnings or CEO tweets; he was looking for a ghost in the machine. but for Elias
A key takeaway from the book is the principle of where a broken support level often becomes new resistance, and vice versa. but for Elias
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications but for Elias
John J. Murphy's Technical Analysis of the Financial Markets