Pattern of Technical Analysis Chart
Want to know about Technical Analysis Graphic Pattern? Below is discussed about the Complete Technical Analysis Graphic Pattern with an easy-to-understand language.
chart patern
1. Symmetrical Triangles
The symmetrical triangle is formed with the lower and lower the increasing, the cause is the number of balanced demand and supply plus a confusion, so slowly some traders move out of the market. And this causes the volume of trade to shrink so that the market is more flat.
At one point the confusion that became a doubt turned into a big, explosive determination. Because before this symmetrical triangle is preceded by a trend, it is usually the ones who detonate this symmetrical triangle are the traders who previously dominated. So the next direction after forming this symmetrical triangle follows the direction of the previous trend.
The way of symmetrical triangle utilization in trading is: Open position when the market penetrates out triangle and at the time of enlarged volume.
2. Ascending Triangles
Ascending triangle is marked by an almost flat and low peak. This indicates an attempt to break through a resistance line repeatedly. The experiment through the resistance repeatedly shows that there is a high enthusiasm for the price to move higher, and the belief that the price will be higher is also seen by traders who have not entered the market, so when there are traders who enter the market the greater the power to penetrate the resistance line that, until one day the line was pierced.
Utilization in trading is: Open Buy position when the upper triangle is penetrated.
3. Descending Triangles
The incidence of descending triangle is similar to ascending triangle, but the direction of enthusiastic traders down, causing a lower quality. When the lower triangle line is broken, the market will decrease further.
Utilization in trading is: Open Sell position when the lower triangle line penetrated the market.
4. Head and Shoulders
Head and shoulders shows a weakening trend. For example on the trend Naik, Where after the peak of the head, normally the market to make corrections only to the top level of left shoulder. But what happens is the market correction is too deep to almost parallel with this previous correction shows the start of power to decline. Furthermore, the market is raised again because some traders think the market has not deserved to go down. But apparently efforts to increase the market failed to exceed the previous high, even reversed directed more deeply to penetrate the previous support. With the penetrated support it is already signal that the direction of the market will decline, but usually the market conducts a test by starting on the neckline line to ensure that the market will actually decline. If the market can not penetrate the necline, then the next direction will fall as deep as the distance between Head and Shoulder.
Utilization in trading: Open a sell position when the market bounces down from the neckline, with profit targets as far as the distance between Head and Shoulder.
5. Wedges
Wedge or in Indonesian called Baji, is a pattern that actually shows correction and or convergent. The shape looks like a symmetrical triangle, but has a direction that is up or down.
Bugs Down or Falling Wedges are marked by low and low lows.
Rising Wedges or Rising Wedges are marked by rising and rising highs.
Falling wedges that occur in the uptrend indicate a correction, the next direction rises.
Falling wedges that occur in the downtrend show a convergent, further upward direction.
Rising wedges are on the uptrend shows convergent, the next direction down.
Rising wedges that occur in the downtrend indicate the correction, the next direction down.
Utilization in trading: Open a position when the market broke through the wedges, its direction in accordance with the above criteria.
6. Flags and Pennants
Flags and Pennants or in the Indonesian language called Flags and Flags this usually occurs after a long movement. These Flags and Pennants can be regarded as a minor correction or a period of searching for a foothold to move even higher.
After Flags and Pennants occurs, the market direction usually corresponds to the previous long movement. As a trend forwarding. So the Flags and Pennants pattern is said to be a continuation pattern.
Note that a flag is flying over a stick. In trading called the stick it is a long movement before the flag or pennant occurs. And usually after a flag or pennant occurs, the market will move back as far as the length of the stick.
Utilization in trading: Open position in the direction of the previous trend when flag or pennant successfully penetrated.
7. Rectangels
Rectangels or rectangles, referred to as continuation patterns. How to use is Opn Position when market break out or penetrate upper limit or lower limit with large volume.
chart patern
1. Symmetrical Triangles
The symmetrical triangle is formed with the lower and lower the increasing, the cause is the number of balanced demand and supply plus a confusion, so slowly some traders move out of the market. And this causes the volume of trade to shrink so that the market is more flat.
At one point the confusion that became a doubt turned into a big, explosive determination. Because before this symmetrical triangle is preceded by a trend, it is usually the ones who detonate this symmetrical triangle are the traders who previously dominated. So the next direction after forming this symmetrical triangle follows the direction of the previous trend.
The way of symmetrical triangle utilization in trading is: Open position when the market penetrates out triangle and at the time of enlarged volume.
2. Ascending Triangles
Ascending triangle is marked by an almost flat and low peak. This indicates an attempt to break through a resistance line repeatedly. The experiment through the resistance repeatedly shows that there is a high enthusiasm for the price to move higher, and the belief that the price will be higher is also seen by traders who have not entered the market, so when there are traders who enter the market the greater the power to penetrate the resistance line that, until one day the line was pierced.
Utilization in trading is: Open Buy position when the upper triangle is penetrated.
3. Descending Triangles
The incidence of descending triangle is similar to ascending triangle, but the direction of enthusiastic traders down, causing a lower quality. When the lower triangle line is broken, the market will decrease further.
Utilization in trading is: Open Sell position when the lower triangle line penetrated the market.
4. Head and Shoulders
Head and shoulders shows a weakening trend. For example on the trend Naik, Where after the peak of the head, normally the market to make corrections only to the top level of left shoulder. But what happens is the market correction is too deep to almost parallel with this previous correction shows the start of power to decline. Furthermore, the market is raised again because some traders think the market has not deserved to go down. But apparently efforts to increase the market failed to exceed the previous high, even reversed directed more deeply to penetrate the previous support. With the penetrated support it is already signal that the direction of the market will decline, but usually the market conducts a test by starting on the neckline line to ensure that the market will actually decline. If the market can not penetrate the necline, then the next direction will fall as deep as the distance between Head and Shoulder.
Utilization in trading: Open a sell position when the market bounces down from the neckline, with profit targets as far as the distance between Head and Shoulder.
5. Wedges
Wedge or in Indonesian called Baji, is a pattern that actually shows correction and or convergent. The shape looks like a symmetrical triangle, but has a direction that is up or down.
Bugs Down or Falling Wedges are marked by low and low lows.
Rising Wedges or Rising Wedges are marked by rising and rising highs.
Falling wedges that occur in the uptrend indicate a correction, the next direction rises.
Falling wedges that occur in the downtrend show a convergent, further upward direction.
Rising wedges are on the uptrend shows convergent, the next direction down.
Rising wedges that occur in the downtrend indicate the correction, the next direction down.
Utilization in trading: Open a position when the market broke through the wedges, its direction in accordance with the above criteria.
6. Flags and Pennants
Flags and Pennants or in the Indonesian language called Flags and Flags this usually occurs after a long movement. These Flags and Pennants can be regarded as a minor correction or a period of searching for a foothold to move even higher.
After Flags and Pennants occurs, the market direction usually corresponds to the previous long movement. As a trend forwarding. So the Flags and Pennants pattern is said to be a continuation pattern.
Note that a flag is flying over a stick. In trading called the stick it is a long movement before the flag or pennant occurs. And usually after a flag or pennant occurs, the market will move back as far as the length of the stick.
Utilization in trading: Open position in the direction of the previous trend when flag or pennant successfully penetrated.
7. Rectangels
Rectangels or rectangles, referred to as continuation patterns. How to use is Opn Position when market break out or penetrate upper limit or lower limit with large volume.
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