What is polarity in technical analysis ?
In technical analysis, polarity may refer to the idea that certain chart patterns or indicators may indicate a trend reversal or continuation in either a bullish (upward) or bearish (downward) direction. For example, a head and shoulders pattern is generally seen as a bearish reversal pattern, while a cup and handle pattern is generally seen as a bullish continuation pattern.
It is important to note that chart patterns and indicators are not guarantees of future price movements and should be used in conjunction with other technical and fundamental analysis tools to confirm trend signals. In addition, chart patterns and indicators can be subject to interpretation and may be influenced by the biases and expectations of the analyst. As a result, different analysts may come to different conclusions about the same data.
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