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The most intriguing and important aspect about ProSticks is that traditional charting and analysis methods can be integrated into the ProSticks Theory. Chart patterns can still be analyzed with traditional techniques and in fact, the analysis is even more effective since the elements of time and volume are now taken into consideration, which ProSticks provides.
Traditional chart patterns such as the double top and bottom formations can be spotted even more easily now by identifying significant Modal Points.
Traditional techniques do not show why support and resistance occurred, even after-the-fact, at the exact price levels (points A and B), as illustrated in the above example.
But with ProSticks, it is clear that the support and resistance levels at points A and B are the results of significant Modal Points at the high and low of the up- and down-trend, respectively.
Other chart patterns can use the analysis of ProSticks as well. ProSticks is not limited to identifying only tops and bottoms. Moreover, recognizing breakouts can be aided with ProSticks as well.
The above example illustrates a popular continuation chart pattern: the cup and handle. As the cup and handle was formed, a Modal Platform was also established, by a series of significant Modal Points. Once the price broke above the Modal Platform, a new trend emerged, signalling a very bullish situation. It helped confirm the already bullish signal of the cup and handle formation as well as the Momentum indicator. Note that if the price were to retrace back, this previous resistance will now change into a strong support level.
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