Figures of technical analysis in Forex

Figures of technical analysis in Forex

Forex – a very popular foreign exchange market, which helps to make real money as advanced businessmen and common people , which has no relation to the business.

Working on this forex market, each trader is obliged to perform technical analysis in order to obtain the highest possible profit. For many traders difficult to understand the Forex market , technical analysis can help shape a better insight in this area .

There is a general classification of the figures of the technical analysis. It shares all the pieces on the reversal and continuation patterns . The first type is characterized by time , and the second – a global trend reversal . Consequently, every trader should learn both kinds in order to carry out their activities more effectively on Forex .

Figures of technical analysis in Forex

To continue figures are triangles of different types , as well as flags and pennants .

As for the first kind of figures , the top line of the triangle is a line of resistance, and the lower limit is enabled . As already mentioned , there are different types of triangles. The most common – is tapering triangle. The boundaries of the triangle meet in a single point , and are symmetrically inclined to the horizontal. This type of triangle can easily be corrected is any trend , which is an indisputable advantage.

Also, there are ascending and descending triangles , which are found in pretty rare. One side of these figures is parallel to the time axis, and the second – is inclined so that the first close . It should be said that the ascending triangle is more used to correct the bear market .

Flags and pennants – it is a very rare kind of figures , which are used for technical analysis . The main difference from the triangles is that their upper and lower limits are mutually with each other.
The major reversal pattern technical analysis include the head, shoulders , and their subtypes , as well as the top and bottom.

Head and shoulders are more used to the bullish trend . Once the trader saw that the chart has formed a figure that is head and shoulders, then he should wait for the formation of the neck to make sure that the figure has completed the formation.

Double top and double bottom are also one of the most popular figures of the technical analysis. Their parallel lines , which are developing honey top and bottom, are considered by some levels of support and resistance.

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