Chart Pattern Analysis
figUre 13.59 Apex Reactions on the 4‐Hour Chart of Silver.
Source: MetaTrader 4figUre 13.60 External Channel Projections on the Daily Chart of Cash Settled U.S.
Dollar Index.
Courtesy of Stockcharts.comIn Figure 13.59, we observe Silver reacting at the apex time lines. Notice a
time line cluster occurring at the second apex reaction time line.
In Figure 13.60, we observe the U.S. Dollar index reversing at the apex re-
action time line, which coincided with a test of the Bollinger upper band and
50 percent Fibonacci retracement level. This resistive confluence tends to create a
strong barrier to price.price gaps
Price gaps are also a critical part of chart pattern analysis as they usually repre-
sent potential support and resistance zones for future price tests. Please refer to
Chapters 4 and 5 for more on price gaps. Here is a list of commonly found price
gaps in the market:■ (^) Common Gaps
■ (^) Breakaway Gaps