The Basic of Technical Analysis

Support
A term used in the technical analysis that indicates a level of specific price in which a modernity will have the incapacity to cross itself down. The lack that is repeated so that the price moves underneath that point produces a pattern that can be formed generally by an air line. A penetrated level of aid becomes resistance

Resistance
A term used in the technical analysis that indicates a level of specific price in which a modernity will have the incapacity to cross itself arrives. The lack that is repeated so that the price moves on that point produces a pattern that can be formed generally by an air line.

Trend
The tendency is simply, the total prices of the direction is movable, Upon, DOWN, OR PLANE.

Channel
When the tendency of parallel prices between two trendlines they form a channel. - When the prices strike trendline inferior that this can be used like area that buys and when the prices strike trendline superior this can be used like sale.

Double top (reversal formation)
For obvious reasons this often is called “M-covers”. The market is failing twice in a resistance and later it is investing shrewdly. A breakage of the aid would indicate other losses towards the target that can be evaluated with the following procedure. The vertical width of the “M” (difference of the price) projects downwards of the limit of invoicing of the aid.

Double bottom (reversal formation)
The opposite of the double cover. (often called “W-he covers”). When the market is failing twice in an aid and later it is investing shrewdly. A breakage of the resistance would more far indicate the rise towards the target that can be evaluated with the following procedure. The vertical width of the “W” (difference of the price) projects downwards of the limit of invoicing of the resistance.

Triangle
The formation of the triangle can be absolutely difficult to analyze and the fact that some diverse types of triangles exist does not make this task easier.

Head and Shoulders
The formation of the left shoulder forms a new overflow with a corrective immersion, meeting following form an overflow = one more a head higher, correction of the head goes underneath overflow of the left shoulder and approaches like the point under the left correction of the shoulder, practicing an opening upon trendline, meeting of the right shoulder does not practice an opening high half, retracing main to three quarters of the head

Fibonacci
POINTS OF THE PIVOT. For the reasons that continue being unknown, important quotients drawn of the Fibonacci numbers to describe to a trustworthy interaction between the tendency and the movement of countertrend in markets. Most important to remember they are the 38,2%, 50% and the 61,8%