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%

Falling Three Methods

Falling Three Methods
A long black body is followed by three of the range of the stop and the point under the body small days, each one contained completely within the first day. The white body of rise of three methods To is followed of length by three of the range of the stop and the point under the body small days, each one contained completely within the first day.

Doji
Doji Long of doji of the Gravestone of doji of the fly of the dragoon (Dragongly) (pagoda)

Engulfing Patterns
Lines that devour frowning lines that devour Bullish

Hammer
Candlestick with one shades a more low long and small true body. The shade must at least be twice the length of the true body, and must have not or very small superior shade. The body can be black or white, but the key is that this candlestick must happen within the context of a bearish tendency that will consider a hammer.

Harami
Candlestick that forms within the true body of candlestick previous is in the position of Harami. The means of Japanese Harami embarrassed in and the second candlestick are inner nestled the first one. First candlestick has generally a great true body and the second a true body smaller than the first one. The shades (high-low) of the second candlestick do not have to be contained within the first one, although it is preferable if they are.

Doji
Doji is candlesticks important that they provide the information in his the own one and also they offer it in a number of important patterns. The form of Doji when an open security and is closed is virtually equal. The length of the superior and lower shades can vary and candlestick that are seems a cross, inverted cross or plus sign. Only, doji is neutral patterns. Bullish star of doji. Frowning star of doji.

Others configurations
Three black crows
Three white soldiers