About ten years ago, there was a really cool movie called “Pi.” Sadly – but perhaps not surprisingly – it sunk without a trace. But the premise of “Pi” is pretty nifty: a genius named Max finds that stock market trends can be revealed in – you guessed it – the Bible. Kind of like a Dan Brown-meets-Warren Buffet thriller.
As you can guess, there are bad guys in the movie – the suits – and the movie is one big action sequence as Max tries to elude is pursuers while simultaneously unlocking the financial revelations in the 4,000-year-old text.
The good news is you don’t need to pour over the Old Testament or incur the wrath of faceless, murderous plutocrats to make money by studying patterns and trends in the stock market.
Day trading wedges, for example, identify classic bullish and bearish patterns. These are patterns that have been seen over time and bring with it, for a lack of a better term, an associated science to it. Other patterns are less definitive, where it would be premature to determine if they are bullish or bearish.