101,000 graphic shapes in trade is an important aspect of technical analysis, but you need to get used to them a little before they can be used effectively. There is some data in the trade that every trader should know about. We’ll take a closer look at them.
Trading data are patterns in the price chart that help you assume price movement based on historical data. There is no single “best” figure, because they are all used in different trends and states in the market. Some patterns are more suitable for an unstable market, while others are more suitable for a stable one. Some models are best used in the bull market, while others are best used in the bull market. It is important to know the “best” graphic pattern for your strategy, because using the wrong one or not knowing which one to use can lead to losses.
Gol and shoulders, double top and double bottom
Head and shoulders is a figure in which the large top has slightly smaller peaks on both sides. Traders are looking for a “head and shoulders” pattern to determine the reversal from a bullish to a bearish trend.
The first and third peaks are usually smaller than the second, but all return to the same level of support, also known as the “neck line”. After the third peak falls to the level of support, it is likely that it will break into the bearish downward trend.
Double top is another pattern traders use to highlight the trend reversal. Typically, the price of a fixed asset peaks before returning to the support level. It then rises again before turning away from the prevailing trend. The “double bottom” formula indicates the period of sale, as a result of which the price of assets falls below the level of support. Then it will rise to the resistance level and then fall again. Finally, the trend will reverse and start moving upwards as the market becomes more bullish.
The double bottom is a bullish reversal model, this marks the end of the downward trend and the transition to an upward trend.
H hour and pen
Drawing “mug and pen” is a bullish continuation pattern that is used to demonstrate the period of bearish sentiment on the market before the general the trend continues in a bullish move.
After rounding the lower price of the asset for temporary withdrawal, which is known as a descriptor. It is limited to two parallel lines in the price chart. Eventually, the assets will get out of hand and continue the overall upward trend.
Post Trade Data: Examples first appeared in G-Forex.net.