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BASICS TECHNICAL ANALYSIS - TRENDFOLLOW FORMATION

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FORMATION ANALYSIS: PRICE PATTERNS AND CHART FORMATIONS

A trend setting of technical analysis is formation analysis. In doing so, certain combinations of movement and correction are considered.
If such a combination is detected, the trader can try to trade the resolution of the formation.
Basically, a different is made between the trend continuation formations and the trend reversal formations.
They are often caused by resistance and support lines.

Trend continuation pattern:

Confirm the strength of a trend. These are, for example, rising / falling triangles. Even flags and pennants (see picture) are seen as a trend continuation.

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