The goal of technical analysis is to identify particular chart patterns that are thought to indicate directional trends or can predict price movements. The main components of a stock chart are the ...

The consensus number one stock pattern, this chart rates at between 83 and 90% accuracy. The bullish variation, the Inverted Head and Shoulders, rates as even more accurate, though only marginally.

Technical analysis uses charts to look for patterns and signals that may indicate whether to buy, hold or sell a stock. It is based on the historical trading history of the stock being analyzed.