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Explosions and Corrections in Investment Chart Patterns

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This is the eBook version of the printed book.

This Element is an excerpt from Technical Analysis Plain and Simple: Charting the Markets in Your Language (9780137042012) by Michael N. Kahn, CMT. Available in print and digital formats.

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How to handle upward or downward “explosions” in market prices--and how to keep yourself from being fooled by them.

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Sometimes, market perceptions change so rapidly that the market seems to explode higher or lower. The extreme example is a market crash, but...