Learning technical analysis (Part 3)-End

B. Double Top and Bouble Bottom
The next method of technical analysis of stock is double top and double bottom method. Double Top, this pattern is formed when there is a change in stock price up to a certain level, then down and then up again (with smaller trading volume) equal the previous highest price level and then decrease again. If the event repeats itself once again, a curve with two twin peaks (such as the letter M) will form. The pattern of the stock price analysis shows that the market has twice failed to try to break the upper (upper) price limit. If the price then declines to break the previous low price level (before the second peak), it indicates the trend of stock price movement will continue to decline. This double top pattern gives a signal to immediately sell.
The opposite of Double Top pattern is double bottom pattern (like W). With the same logic, this pattern gives a signal to take action because the price is expected to continue to rise.

C. Triple Top and Triple Bottom
Triple Bottom, is a reversal pattern formed from three equal lows followed by a breakout above the resistance. This pattern can take several months to form, which is usually a long-term pattern covering several months. Because it is long-term, the weekly chart seems more appropriate for this analysis.

Triple Top, is a reversal pattern made of the three highest prices followed by a break below the support. In contrast to the tripple bottom, triple tops usually stuck in a shorter period of time and are usually in the range of 3 to 6 months. Usually compared to tops, bottom takes longer to form.

D. Triangle
The method of technical analysis of stock triangle (triangle curve pattern) is divided into two, namely Ascending Triangle (upward triangle) and Descending Triangle (decreasing triangle). Descending Triangle is formed when there are several valleys that are equally low with some of the peaks declining. In other words, there is a change in the stock price between the horizontal bottom border with the slope having a decreasing slope. If the price breaks through the lower border along with an increase in trading volume, this gives a signal to sell because stock price analysis is estimated that the price will continue to decline.
While Ascending Triangle is formed if the stock price movement follows a pattern in contrast to the Descending Triangle. This pattern gives a signal to take stock buying action as it is predicted that the price will continue to rise.

E. Head and Shoulder
Head and Shoulder's technical stock analysis can be divided into 2 forms: Head and Shoulder Top and Head and Shoilder Bottom. Head & Shoulder Top technical analysis gives a signal to sell as it is expected that the price will continue to decline. The neckline is drawn by drawing a straight line from the bottom of the two shoulders to get a signal when the selling action is done. If from the stock price analysis, stock price movements (right shoulder) penetrate the neckline from top to bottom (piercing The neckline), this is a signal to immediately sell the stock to reduce the loss (cut loss).

While technical analysis of Head & Shoulder Bottom occur in reverse, two shoulder (shoulder) and head (head) downward direction.
The neckline is formed by drawing a straight line over both shoulders. If the pattern is formed and the second price curve (right shoulder) penetrates the neckline from the bottom up, it is a signal to buy because there is a tendency to change the stock price at which the price will be continue to rise.

That's the end of the 3rd Part on "How to Learn Technical Analysis"

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