Page 42 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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LOS 13.d: Describe common chart patterns.. p. 320 Session Unit 3:
13. Technical Analysis
Say for over 6 months, you track the performance of a security and find this pattern
(Highest price was $120 and lowest/neckline of $85).
$120 What is your target price to start buying?
Target price = Neckline – (Head – Neckline)
$85!
$50 = 85 – (120 – 85)
What goes up, must come down! By same?
Lower high
Triangles form when prices reach lower highs
and higher lows over a period of time
