The Pitfalls of Famous Chart Patterns [Water Voyage]

The chart contains numerous patterns that suggest market reversals and sharp rises or falls. Basically, after a chart pattern appears, the market tends to move in the expected direction, but of course there are cases where it proceeds in the opposite direction, so caution is required. Here, Noriyuki Mizukami explains the pitfalls of famous chart patterns.

Noriyuki Mizukami Profile

Mizukami Noriyuki. Representative of Barnya Market Focused. In 1978, after graduating from Sophia University with a degree in economics, he joined Sanwa Bank (now MUFG Bank). After five years of branch operations, he worked as a forex dealer in London, Tokyo, and New York. He is known in the Tokyo foreign exchange market as “Mizukami of Sanwa.” He served as foreign exchange department head at Dresdner Bank. From 1996, at RBS Bank, he served as foreign exchange department head and then head of foreign exchange sales. From 2007, representative of Barnya Market Focused. He is well-regarded for highly accurate market forecasts based on long-standing experience and knowledge.

What are the two recent real-world cases?

When the market moves, funds actually move. For example, if you sell to unwind a long position, the market falls. Conversely, if you buy to unwind a short position, the market rises. The market is built on this simple principle. However, there are times when things go in the opposite direction. That is the pitfall of famous chart patterns. Now, I will introduce two recent real-world cases.