It’s not a secret that many market analysts specialize and follow just a few assets whereas technical analysts may follow any market any financial instrument.
A Head and Shoulders pattern looks the same for both the forex and the stock market. No need to crunch mega doses of numbers and figures to forecast the direction of the market.
Say, that EURUSD is trapped in a narrow sideways direction not leaving any room for potential profits so you decide to pull the S&P500 chart instead that is trending.
Simply, identify a series of higher tops and higher bottoms for an uptrend and lower tops and lower bottoms for a downtrend.
If you spot equal tops and equal bottoms, then you are most probably in a sideways market.
This may be applied to any price chart.
After all, what we really do is decipher the crowd’s psychology.