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Trend analysis of markets is a very useful tool in the technicians toolbox.

The concept of trend is absolutely essential to the technical approach to market analysis.  All the tools used by the chartist–support and resistence levels, price patterns, moving averages, trendlines etc.–have the sole purpose of helping to measure the trend of the market for the purpose of participating in that trend.

 

Technicians using charts search for archetypal price chart patterns, such as the well-known head and shoulders