Patterns and their application in technical analysis
In technical analysis, patterns (price models) help traders predict future price movements. They are formed on charts and come in two types: reversal and trend continuation.
Basic patterns
1. Reversal patterns:
They signal a possible change in the current trend.
Double Top (Reversal Peak) – indicates a reversal of the upward trend downwards.
Double Bottom (Reversal Trough) – signals a change from a downward trend to an upward one.
Head and Shoulders (Peak Balance) – a classic model indicating a change from a bullish trend to a bearish one.
Inverted Head and Shoulders (Inverse Balance) – indicates a change from a bearish trend to a bullish one.
2. Trend Continuation Patterns:
These patterns indicate that the price will continue to move in the current direction.
Flag (Trending Channel) – short-term consolidation before trend continuation.
Excavation (Impulse Pullback) – a temporary pause before movement continues.
Wedge (Narrowing Channel) – narrowing price range before a breakout.
Unconventional Candlestick Patterns in Trading
Using candlestick patterns helps traders predict price movement. Here are some unique patterns that can assist in market analysis.
#ТехническийАнализ #Трейдинг #СвечныеПаттерны #ФинансовыеРынки #инвестиции