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31 A R BOLLINGER BANDS ON THEIR OWN Part III delves into the most basic function of technical analysis, pattern recognition, and demonstrates how Bollinger Bands can be used to aid successful pattern recognition. Tops, bottoms, and sustained trends each have their own chapter. Finally, you will find the first of the three trading methods-this one based on The Squeeze.
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 PATTERN RECOGNITION Pattern recognition refers to the process by which we recognize recurring events. Typically such events have a signature consisting of a number of discrete pieces that, when combined in specific sequences, allow us to recognize the pattern and act upon it. These patterns rarely, if ever, repeat exactly. Rather, they are only generally the same, and there lies the rub. In order to be successful at pattern recognition, we need some framework within which these patterns can be analyzed, and Bollinger Bands can provide that framework. The literature of technical analysis is rife with descriptions of technical patterns. Double bottoms and tops, head-and-shoulders formations (regular and inverted), and ascending and descending triangles are but a few of the more common patterns. Some patterns imply trend reversals, and others are continuation patterns.1
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