Technical Analysis (4) Chart configurations summary

 

double bottom

This is also a form that indicates a reversal of the trend. But in this case, instead of entering short positions, you will enter short positions long. This pattern occurs after a period of price staying in a downtrend, and after bottoming out.

As with the double top, the double bottom also represents a reversal of the trend.

Note: There is a triple top, and a triple bottom as well. These are cousins ​​of the double top and bottom, and the two models are similar in shape is approx, the only difference is the presence of 3 peaks and 3 minimum points.

head and shoulders

This is also one of the trend reversal configurations. This pattern is characterized by a peak (shoulder) followed by a higher peak (head), and then a lower peak (the other shoulder). The lower points of two lower points are joined by the neckline. The oblique line of the neck can be up or down. But in general, if the slash is down, the model is more reliable.

The above figure clearly shows the head and shoulders pattern. The head is the middle apex and the highest point in config. The other two peaks represent the shoulders and do not exceed the highest point of the head. You issue an order to enter the center below The neckline in this model. It is possible to place a target, from the top of the head to the neckline. indicates this Until the price will fall after breaching the neckline. From the chart below, you can see that the price breaks through the neckline. The decrease is equivalent to the length from the head to the neckline approx.

Inverted head and shoulders

As the name implies, this is an inverted head and shoulders model. Instead of peaks, we have price valleys. follow the valley (shoulder), A lower valley (the head), followed by a higher valley (the other shoulder). From the diagram below, you can see that it is an inverted head and shoulders model. This model invites us to enter long positions and the entry point Is above the neckline. You can calculate approximately how much the price will rise after the neckline is breached, by measuring the distance

Between the head and the neckline. This distance is equivalent to the upward movement of the price after it crosses the neckline. Here is an approximation.

Chart configurations summary

Equilateral Triangles

It has lower highs and higher lows. The entry order is issued above the diagonal for lower elevations, and below the diagonal for higher lows.

ascending triangles

Includes resistance line, and higher dips. Indicates the possibility of the price breaching the resistance line, and continuing heading upwards. Entry orders are placed above the resistance line, and below the diagonal line for the higher lows, in case the resistance line is strong.

descending triangles

It includes a support line and lower elevations. Indicates that the price may break the support line, and continue heading down. The entry order is issued below the support line, and above the lower highs, if the support line is very strong.

double top

It occurs after a period of price continuation in an upward trend.

It is characterized by the presence of two peaks, which cannot cross the resistance line.

Entry orders are placed below the neckline of the two lower peaks.

double bottom

Occurs after a period of continued downtrend prices.

It is characterized by the presence of two valleys, which cannot breach the support level.

Entry orders are issued above the neckline of Ras Al Wadiyen.

head and shoulders

Occurs after the price has spent an extended period in an uptrend.

It has one peak, then another peak, and then one lower peak. We get the neckline by connecting the lower points of the two valleys.

Buy orders are placed below the neckline.

You can find out the price target by measuring the distance between the height of the head and the neckline. 

The price moves after the neckline are breached.

Inverted head and shoulders

Occurs after the price has spent a long time in a downtrend.

It is characterized by a valley, followed by a lower valley, and then a higher valley. We get the neckline by connecting the highest points of the two peaks.

Purchase orders should be placed above the ruqyah line.

The price target can be measured by the distance between the peak of the head and the neckline. This distance will indicate approx

To the price movement after penetrating the neckline.