Which tool is used to identify market patterns and trends?

The price chart is an essential tool for identifying market patterns and trends. It visually represents historical price data for an asset over time, allowing traders and analysts to observe movements and fluctuations in price. By analyzing price charts, one can identify trends such as upward (bullish), downward (bearish), or sideways movements, as well as potential reversal points or consolidation patterns.

Price charts can also display various technical indicators and overlays that further assist in trend analysis, making it easier for market participants to make informed trading decisions based on historical performance and patterns. The visual nature of price charts is a fundamental aspect of technical analysis in trading, which seeks to forecast future price movements based on past behavior.

The other options, while related to the broader financial landscape, do not focus specifically on the immediate analysis of market patterns. For instance, the matrix of currency exchange rates provides information on the relative strength of currencies, which might influence trends but doesn't directly show them. The world equity index gives an overview of the performance of a set of stocks in a particular market but lacks the detailed price movement useful for identifying specific trends. The Big Mac index is an informal measure of purchasing power parity and does not serve as a tool for direct analysis of market trends.