Tips When Studying Chart Pattern.

There are two important lessons when studying chart patterns. The first is that none of these chart patterns are infallible. They work most of the time, but not always.

The second lesson is that technical traders must always be on the alert for chart signs that their analysis is incorrect. One of the keys to survival in the finanical markets is to keep trading losses small and to exit a losing trade as quickly as possible.

One of the greatest advantages of chart analysis is  its ability to quickly alert the trader to the fact that he or she is on the wrong side of the market.

 The ability and willingness to quickly recognize trading errors and to take defensive action immediately are qualities not to be taken lightly in the financial markets.