The multi top and bottom graphs are quite common and best-known formations are among. These formations are actually the simplest representation of the general logic of technical analysis pattern. These tools are located between the multi bottom and top formations can give quite reliable results.
Binary peak or a double peak can be seen at the end of the formation of a strong upward trend. Important peak level investors who cannot participate in the action together with turning previously with the expectation that the market will rise again and that the previous trend will continue into prices moves up to a level near the top, but the previous resistance has become an important sales tough bottoms in the second bottom. The level of support prices has attracted buyers to be reluctant at this point again.
The support level is the approval point of formations. If the support level surpasses, formation will be approved and trend will change. The support line is drawn parallel to the line connecting the two hills on the bottom level of resistance. With the breaking of the support level, the price peak with the line of minimum distance between the support lines is expected to be much lower.
It wouldn't be right to expect symmetrical or perfect geometric structures the formation of the hills does not have to be on the same level. The second peak may be left slightly above or below.
- Date: 29 October 2016 Sat 11:50
- Last Added
French Presidential elections are affecting the positive atmosphere on Euro
French Presidential elections are affecting the positive atmosphere on Euro...
Inflation rate is testing record levels in Turkey
Inflation rate is testing record levels in Turkey...
Non-farm payrolls data of the USA increased
Non-farm payrolls data of the USA increased...
Fed's politics interest decision gives direction to the global markets
Fed's politics interest decision gives direction to the global markets...
Oil market is trying to find a direction
Oil market is trying to find a direction at the last times....