Hundreds of years of price charts have shown that prices tend to move in trends.  (I'm sure we've all heard the saying, 'the trend is your friend'.) Well, a trend is merely an indicator of an imbalance in the supply and demand.  These changes can usually be seen by market action through changes in price.  

Research has proven that some chart patterns have high forecasting probabilities. These patterns include;

• symmetrical triangles,

  ascending triangles and descending triangles,

  wedges,

  flags and pennants,

  rectangles and the

  head and shoulders patterns.