Show patterns of continuity to temporarily stop the trend and my time and this means that the former trend will continue its trend after a period of time, we’ll show the following patterns are as follows: symmetrical triangles, price channels, flags and bunting.
– Price channels
Price channels is the kind of patterns of continuity as a continuing line, which is committed to return and the trend line line, it is possible to channel the price to go down and called the direction of this descending pattern or it could go up and called this ascending pattern and either remain unchanged and here called the rectangular pattern, according to Low Each channel can have all the line either line resistance or support line be.
* Price called pattern upward pattern Althrena, when prices reach the support line then provides traders to buy while when prices hit resistance line then they reap the gains.
* Price called pattern-style countdown beArs, when prices reach the support line then the traders to reap the gains when prices hit resistance line then they sell.
* Price is either rectangular pattern Bearish or oxen, but simply reflects a temporary stop time of the main underlying trend.
In order to draw a price ascending channel, it is necessary provide at least two points higher than the lowest level and be able to draw two lines identical parallel or also be available two additional points higher than the highest level, and vice versa, it is to draw a bearish channel we need to provide two points lower than the highest level and be able Drawing parallel lines identical or that is also available two additional points lower than the lowest level.
Although the channel is one of the price patterns, but there is a special section of the Moors, and in which they are a reflection of the trend. In general when these situations occur, the prices get stuck in access to the return line which leads to enable the existence of the index close to a coup. The channel also affect the impact quantified, since when the price broke the channel line and breaking to jump routinely distance at least equal to the channel width.
Technical Analysis is based most often on conjecture and speculation more than that depends on accurate science and knowledge, so the field of change exist. Although the ideal situation is touching the prices of lines channels and way, but every trader able to control the status of these lines and control through his vision of the situation and by profile analysis and the same way the corresponding line and parallel trend line is the ideal channel line.
– Symmetrical triangles
Triangles are similar patterns of price and continuity that occur in the market when it is clear to us that the market trend is clear, this pattern includes two points less than the highest levels and the others by two points higher than the lower levels, which seems like a moving one toward the other. When you do extended lines that reach these points will result in our symmetrical triangle as a product of the convergence of these lines.
There are barriers of time and the amount of the asymmetric pattern of triangles. When price Broke triangle shape,, price declines before you get what reaction sharply and deeply to penetrate the boundaries of the triangle. When prices of the limits of the triangle out and penetrate, as usual going price is approximately equal to the triangle or more base length (example below). As for breaking the barriers of time limits and the triangle usually gets a break between half to two-thirds of the triangle formation For any meaning between half to two thirds of the height of the triangle.
Is likely to get a break from the triangle to the borders of both sides, when the symmetrical triangle downside resides Bearish any breakthrough toward the downward trend of the past, when a bullish symmetrical triangle exists any oxen break with the past about the upside happens.
An example of a bullish symmetrical triangle:
Considered flags continuity patterns routinely get in the middle of the big price movement reflects only a short period of time in many market movements. This can be set Alnamat and identified through the body and form, in the case of Uncle rectangle formed diagonally somewhat contrary to the trend in the case of the flag consists form of a triangle.
The flags are similar and are similar in their impact and in form, as in Monday there is a strengthening in traffic, and in order to sequence we consider the direction of the price, it must exist what was said to be a strong form guide and firm over the direction of prices in a particular direction.
Most often progresses flags or very high price decline toward which gives the graph form flagpole In order to break out of this pattern must be at least move along the spar.
An example of a bullish flag: Move price equal to the length of the flagpole Shahu got penetration