Technical analysis 1
Chapter 1: Technical analysis.
It is the study of the evolution of the prices of an underlying with a prospective vision, which is based on the psychology of the markets (trend, volatility ...). Technical analysis is a complement to that fundamental and sources of information.
1) Trend continuity figures
The triangles are figures which intervene in markets without trend, in general they are rather undecided periods. the triangles start with an area where the prices move in a fairly wide area as if the operators were waiting for a signal or an event to make a decision, to go to an increasingly narrow and tight area, where the operators' opinion is converge.
triangles are very powerful tools in graphical analysis, they allow in certain cases to predict the future direction of the market or of a value with fairly precise objectives.
to confirm the trend, the triangle exits must be made with high volumes, if the transactions are small, the objectives may not be reached or the exit may be a false start.
there are different types of triangles, some allow you to guess the future trend by their shape, others are figures more difficult to interpret.
There are three types of triangles:
- the symmetrical triangle
- the ascending triangle
- the descending triangle
The symmetrical triangle
Introduction:
The symmetrical triangle consists of a support and a resistance which converge in the same direction. During the formation of the symmetrical triangle, we will observe smaller and smaller volumes when the support or resistance breaks.

example of a symmetrical triangle in an uptrend.
Characteristic of a symmetric vertex triangle
There are three types of triangle: the symmetric triangle, the ascending triangle and the descending triangle.
the symmetric vertex triangle graphic is a figure made up of a small symmetrical triangle.
The construction of this chartist figure is materialized by a succession of several peaks and troughs whose amplitude weakens over time, demonstrating an important desire to draw prices upwards.
this figure is formed by two divergent lines, the support being an upward oblique line and the resistance a horizontal line.
Each line must be touched at least twice to be validated.
it evolves between an oblique support line (straight line drawn by connecting at least two successive session lows) and horizontal resistance (straight line drawn by connecting at least two successive session lows).
it is broken down into several phases, a first step brings the price to a higher level, which manifests itself by price resistance, and then falls back towards a support zone.
The second stage appears in the form of the ultimate formation of a vertex and a trough.
the support line on which the prices are based represents the line in the lower price zone observed during the construction of this structure.
Finally, this figure ends with a capitulation of bear or bear traders to finally give the bulls their hands and make the prices strongly progress after having touched the support line several times.
Interpretation:
in 60% of the cases, the symmetrical triangle configuration reflects a continuation of the current trend. If we are in an uptrend we will generally wait for an exit from the top, and we will wait for an exit downwards if the current trend is bearish. knowing that very often this figure will make a pullback on the broken area before going back up (or down).
How to identify the objectives?
The objective of this configuration is relatively simple to find since we will take the height of the first oscillation to fix the objective. then it will suffice to transfer the height of this oscillation to the broken area. (Objective 2 in the image above)
You can also calculate an intermediate objective, using the lowest contact point of the support if it is a symmetrical triangle in an uptrend. or, by resuming the highest point of contact of the resistance if the configuration is in a downward trend. (Objective 1 in the image above).
The ascending triangle
Introduction:
Like the symmetrical triangle, the ascending triangle is made up of a support and a resistance. During its formation, smaller and smaller volumes will be observed when the resistance breaks.
Characteristics :
the ascending triangle is generally seen in an upward trend. It is characterized by a horizontal resistance line and an ascending second line.
the oscillations inside its obliques must be smaller and smaller and have at least two contact points on each side.
Interpretation:
In 66% of cases, the ascending triangle configuration reflects a continuation of the current trend (upward).
in case you spot an ascending triangle in a bearish trend I advise you not to trade on this figure.
How to identify the objectives?
We will determine the different objectives of the ascending triangle by plotting the height of each oscillation on the resistance line
Descending triangle.
Characteristics :
As you have probably understood the descending triangle is the perfect opposite of the ascending triangle.
We can therefore detect this figure following a fall in prices. this triangle is formed by a horizontal support line, then a second downward resistance line.
Interpretation:
The oscillations inside its obliques must be smaller and smaller and have at least two contact points on each side. in 66% of cases, the descending triangle configuration reflects a continuation of the current trend (bearish).
If a descending triangle appears in an uptrend I advise you not to waste your time on this figure.
How to define the objectives?
the objectives of the descending triangle is determined by plotting the height of each oscillation on the support line.
It is the study of the evolution of the prices of an underlying with a prospective vision, which is based on the psychology of the markets (trend, volatility ...). Technical analysis is a complement to that fundamental and sources of information.
1) Trend continuity figures
The triangles are figures which intervene in markets without trend, in general they are rather undecided periods. the triangles start with an area where the prices move in a fairly wide area as if the operators were waiting for a signal or an event to make a decision, to go to an increasingly narrow and tight area, where the operators' opinion is converge.
triangles are very powerful tools in graphical analysis, they allow in certain cases to predict the future direction of the market or of a value with fairly precise objectives.
to confirm the trend, the triangle exits must be made with high volumes, if the transactions are small, the objectives may not be reached or the exit may be a false start.
there are different types of triangles, some allow you to guess the future trend by their shape, others are figures more difficult to interpret.
There are three types of triangles:
- the symmetrical triangle
- the ascending triangle
- the descending triangle
The symmetrical triangle
Introduction:
The symmetrical triangle consists of a support and a resistance which converge in the same direction. During the formation of the symmetrical triangle, we will observe smaller and smaller volumes when the support or resistance breaks.

Characteristic of a symmetric vertex triangle
There are three types of triangle: the symmetric triangle, the ascending triangle and the descending triangle.
the symmetric vertex triangle graphic is a figure made up of a small symmetrical triangle.
The construction of this chartist figure is materialized by a succession of several peaks and troughs whose amplitude weakens over time, demonstrating an important desire to draw prices upwards.
this figure is formed by two divergent lines, the support being an upward oblique line and the resistance a horizontal line.
Each line must be touched at least twice to be validated.
it evolves between an oblique support line (straight line drawn by connecting at least two successive session lows) and horizontal resistance (straight line drawn by connecting at least two successive session lows).
it is broken down into several phases, a first step brings the price to a higher level, which manifests itself by price resistance, and then falls back towards a support zone.
The second stage appears in the form of the ultimate formation of a vertex and a trough.
the support line on which the prices are based represents the line in the lower price zone observed during the construction of this structure.
Finally, this figure ends with a capitulation of bear or bear traders to finally give the bulls their hands and make the prices strongly progress after having touched the support line several times.
Interpretation:
in 60% of the cases, the symmetrical triangle configuration reflects a continuation of the current trend. If we are in an uptrend we will generally wait for an exit from the top, and we will wait for an exit downwards if the current trend is bearish. knowing that very often this figure will make a pullback on the broken area before going back up (or down).
How to identify the objectives?
The objective of this configuration is relatively simple to find since we will take the height of the first oscillation to fix the objective. then it will suffice to transfer the height of this oscillation to the broken area. (Objective 2 in the image above)
You can also calculate an intermediate objective, using the lowest contact point of the support if it is a symmetrical triangle in an uptrend. or, by resuming the highest point of contact of the resistance if the configuration is in a downward trend. (Objective 1 in the image above).
The ascending triangle
Introduction:
Like the symmetrical triangle, the ascending triangle is made up of a support and a resistance. During its formation, smaller and smaller volumes will be observed when the resistance breaks.
Characteristics :
the ascending triangle is generally seen in an upward trend. It is characterized by a horizontal resistance line and an ascending second line.
the oscillations inside its obliques must be smaller and smaller and have at least two contact points on each side.
Interpretation:
In 66% of cases, the ascending triangle configuration reflects a continuation of the current trend (upward).
in case you spot an ascending triangle in a bearish trend I advise you not to trade on this figure.
How to identify the objectives?
We will determine the different objectives of the ascending triangle by plotting the height of each oscillation on the resistance line
Descending triangle.
Characteristics :
As you have probably understood the descending triangle is the perfect opposite of the ascending triangle.
We can therefore detect this figure following a fall in prices. this triangle is formed by a horizontal support line, then a second downward resistance line.
Interpretation:
The oscillations inside its obliques must be smaller and smaller and have at least two contact points on each side. in 66% of cases, the descending triangle configuration reflects a continuation of the current trend (bearish).
If a descending triangle appears in an uptrend I advise you not to waste your time on this figure.
How to define the objectives?
the objectives of the descending triangle is determined by plotting the height of each oscillation on the support line.
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