FORMATION ANALYSIS: PRICE PATTERNS AND CHART FORMATIONS
A trend setting of technical analysis is formation analysis. In doing so, certain combinations of movement and correction are considered.
If such a combination is detected, the trader can try to trade the resolution of the formation.
Basically, a different is made between the trend continuation formations and the trend reversal formations.
They are often caused by resistance and support lines.
Trend continuation pattern:
Confirm the strength of a trend. These are, for example, rising / falling triangles. Even flags and pennants (see picture) are seen as a trend continuation.
A trend setting of technical analysis is formation analysis. In doing so, certain combinations of movement and correction are considered.
If such a combination is detected, the trader can try to trade the resolution of the formation.
Basically, a different is made between the trend continuation formations and the trend reversal formations.
They are often caused by resistance and support lines.
Trend continuation pattern:
Confirm the strength of a trend. These are, for example, rising / falling triangles. Even flags and pennants (see picture) are seen as a trend continuation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.