# Five major figures of technical analysis Forex

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• the triple bottom
• double bottom
• rectangle
• the ascending triangle.

the Figure is the main tool for technical analysis in Forex. This is described by the curve of prices of a financial instrument (a pattern) that repeats all the time. Based on it, over time you can make predictions about what will be the future price movement. And so, let's have a closer look at the basic shapes.

the

### the"Triple bottom"

This figure, which by its nature is much similar to the figure of the Double bottom . The only difference between them is that the "Triple bottom" on 1-in min more. This figure can only be preceded by an uptrend, and appear only after a downtrend: in other words, the Triple bottom turns the price up. In technical analysis, the Triple bottom is a very simple reversal on the rise. Visually it looks like this "VVV" (3-ri Latin letter V, located one after the other. In order not to be mistaken with her determination, it is necessary to monitor the resistance crossing after the 3rd of bottom and volume.

the

### Double bottom

"Double bottom" (English double bottom) is one of the most common reversal patterns that can be found after a downtrend. By its nature this pattern is similar to the figure "Double peak" (they are identical, with only one difference, they are a reflection of each other. "Double bottom" is a 2-WA about the same bottom, with nebolshim climbing between them. Sometimes, due to the apparent similarity, this figure is called W (the letter).

Often the classic "Double bottom" is the precursor to at least a little, but changing the direction of the price movement. Remember that in a downtrend you can see a lot of potential "W", but to confirm we need to wait for the completion and confirmation of the figure. The primary motion pictures, confirming "Double bottom" is the intersection of the resistance from the bottom up.

the

This is a reversal pattern (in English head and shoulders (known as a shampoo TM)), which often can be found after an uptrend. This figure is with 3-ri serial peak: the highest of them (the one in the middle) is the head, and the other 2 Islands, which are lower and approximately equal (those along the sides) it's shoulders. Dona what is VPP creates a line of support (English support), also called cutout (English neckline) in a given figure.

This figure is one of the most common in technical analysis. Remember that this figure is created after an uptrend and the price turns, creating a new downward trend. Shoulders are not always symmetrical; they can have different: minima, maxima, and width. The main factor in the confirmation of this figure is the crossover of the support line that is "cut".

the

### Rectangle

Shape Rectangle (English rectangle) is very easy to see on the chart. This figure is a kind of pause in the trend during which buyers and sellers are negotiating directly. Its distinctive features are lines of support and resistance, which are 2-ve horizontal side of the imaginary rectangle (the 2-ve vertical sides of this rectangle completely fictional). In technical analysis a rectangle is a simple figure showing the struggle between buyers and sellers. Remember that this figure only works when the price crosses any side of the rectangle in the direction of the trend (i.e., crosses from above the support in a downtrend or bottom of the resistance in an uptrend).

the

### Ascending triangle

"Ascending triangle" (in English rising triangle) is the piece that is quite rare in technical analysis. This figure, like its smaller brother the "descending triangle", we can refer to the figures of trend continuation and reversal because this is a bullish pattern. This oznachaet that no matter what was the weather before the figure, and after its confirmation and completion, the price of a financial instrument is increasing (going up). This favourable figure, because it is a harbinger of growth rates, regardless of the direction of the preceding trend. All investors and traders are very fond of this figure and wait for its appearance on the charts.

Translated by "Yandex.Translate": translate.yandex.ru.

Author: World of translation
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