Technical analysis 2
Technical analysis 2
After having explained in depth the trend continuity figures which is based precisely on one the triangular figures of three types. This article, this time will take care of "the trend reversal figures".
2) The trend reversal figures:
They are graphic figures which will take place at the end of a trend and which will announce the imminent change of trend. that is to say it will show us that the trend is likely to end and that a new trend is likely to replace it, for example the end of a downward trend which is likely to be replaced by an upward trend. there are a lot of reversal figures that exist, those that must and are well known by traders and others rare who know them.
But generally, we will see the 3 best trend reversal figures that can help traders a lot to make money.
A] the ascending bevels and the descending bevels.
then there, for the ascending bevels it will be at the approach of a very specific resistance on a specific course, it shows that the price loses its power and evolves less and less well, and as soon as it arrives at the resistance for 2 or three recoveries it turns around (towards a downward trend).

For the descending bevels, generally it will be near a major support, that is to say that the price will reach the support and will become less and less low and will turn towards an upward trend.

B] The double hollow and the double vertex.
the double dip also called double bottom which generally forms at the end of a downward trend. It is then a figure which calls for the reversal of the upward trend, it can also be called according to the common language of traders: W Formation.

the double peak otherwise known as double top which generally forms at the end of an uptrend and signals a new wave of downtrend. Also called: M Formation.

C] Shoulder-head-shoulder and the same overturned.
also called the ETE, a figure composed of 3 successive vertices 2 as shoulders and a vertex in the middle called the head.
it is often well placed in an uptrend and often forms on a support line called "neck line" which remains in case of breakage a strong sign of sale (downtrend is approaching).
a figure the SUMMER overturned tends towards the same principle but towards a sign of purchase, ie a future upward trend.
D] Morning Star and Evening Star.
a) Morning Star:
It is a technical figure which announces a reversal of upward trend. it is made up of a large bearish candle (red) and a second bullish or bearish candle of a small size, which forms a small gap (like a small gap), and a third large candle which is bullish, which returns to the start point.
To see the photo

when the first candle in the figure is formed the trend is bearish. At the time of
formation of the second candle the small body and the small wicks show that the tendency
runs out of steam. The third candle is used to validate the upward trend reversal.
b) Evening star:
unlike that of Morning, the evening star is a figure that announces a reversal of downward trend. .it consists of a first large bullish candle (large body), and a second bearish or bullish candle which forms a small gap of the first candle, and a third candle of a large body which makes it all towards the first point.

when the first candle in the figure is formed the trend is upward. At the time of the formation of the second candle the small body and the small wicks show that the tendency
runs out of steam. The third bullish candle is used to validate the downward trend reversal.
After having explained in depth the trend continuity figures which is based precisely on one the triangular figures of three types. This article, this time will take care of "the trend reversal figures".
2) The trend reversal figures:
They are graphic figures which will take place at the end of a trend and which will announce the imminent change of trend. that is to say it will show us that the trend is likely to end and that a new trend is likely to replace it, for example the end of a downward trend which is likely to be replaced by an upward trend. there are a lot of reversal figures that exist, those that must and are well known by traders and others rare who know them.
But generally, we will see the 3 best trend reversal figures that can help traders a lot to make money.
A] the ascending bevels and the descending bevels.
then there, for the ascending bevels it will be at the approach of a very specific resistance on a specific course, it shows that the price loses its power and evolves less and less well, and as soon as it arrives at the resistance for 2 or three recoveries it turns around (towards a downward trend).

For the descending bevels, generally it will be near a major support, that is to say that the price will reach the support and will become less and less low and will turn towards an upward trend.

B] The double hollow and the double vertex.
the double dip also called double bottom which generally forms at the end of a downward trend. It is then a figure which calls for the reversal of the upward trend, it can also be called according to the common language of traders: W Formation.

the double peak otherwise known as double top which generally forms at the end of an uptrend and signals a new wave of downtrend. Also called: M Formation.

C] Shoulder-head-shoulder and the same overturned.
also called the ETE, a figure composed of 3 successive vertices 2 as shoulders and a vertex in the middle called the head.
it is often well placed in an uptrend and often forms on a support line called "neck line" which remains in case of breakage a strong sign of sale (downtrend is approaching).
a figure the SUMMER overturned tends towards the same principle but towards a sign of purchase, ie a future upward trend.
D] Morning Star and Evening Star.
a) Morning Star:
It is a technical figure which announces a reversal of upward trend. it is made up of a large bearish candle (red) and a second bullish or bearish candle of a small size, which forms a small gap (like a small gap), and a third large candle which is bullish, which returns to the start point.
To see the photo

when the first candle in the figure is formed the trend is bearish. At the time of
formation of the second candle the small body and the small wicks show that the tendency
runs out of steam. The third candle is used to validate the upward trend reversal.
b) Evening star:
unlike that of Morning, the evening star is a figure that announces a reversal of downward trend. .it consists of a first large bullish candle (large body), and a second bearish or bullish candle which forms a small gap of the first candle, and a third candle of a large body which makes it all towards the first point.

when the first candle in the figure is formed the trend is upward. At the time of the formation of the second candle the small body and the small wicks show that the tendency
runs out of steam. The third bullish candle is used to validate the downward trend reversal.
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