Forex: What are trend confirmations?…

Formations that announce consolidation (consolidation) in the midst of a higher-level trend with a subsequent trend continuation are referred to as trend confirmation or consolidation information. Normally these formations occur after strong course movements.

One of the basic rules for the formation of trend confirmation information view publisher site some is that the volume of trading should go back during the trend-confirming formation training and then rise again at the outbreak. If this is not the case, a trend confirmation day blog information must be doubted.

There are a number of different trend confirmations. However, only dig this his the most important formations are discussed here.

Flags and pennants

The two trend confirmation flags and pennants are by far the best known and most reliable formations.

Flags and pennants are particularly well suited for the purpose of the course. For this purpose the course of the course must be measured up to the flag / pennant. If the formation breaks out, the look what i found back length of the course of the course must be matched to the eruption level, resulting in the calculated course target.

Triangles

Another well-known trend confirmation is the triangle, whose shape can be ascending or descending as well as symmetrical.

The triangles can be used to determine the course objectives. This is now extra resources where the widest part of the formation has to be removed to the appropriate breakout level, whereby the course target of the formation can be determined.

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rectangle

The rectangle represents trend confirmation do why not try these out information, which is shown in two parallel horizontal trend lines. Here the following applies: The stronger the previous trend, the longer the ramp is usually within the rectangle.

Just like the other formations, rectangles are also suitable for determining the price. In this case, the height of the formation must be matched of try this out to the corresponding breakout level, whereby the target price can be determined.

wedges

The wedge trend confirmation information is similar to a symmetrical triangle, with the two parallel running lines meeting the top of the formation. The wedge must not be confused with the triangle. The difference here is the clear slope upwards or downwards. Furthermore, the wedge is always against the prevailing trend. For this reason, a falling wedge is bullish and rising bearish.

Image: Pixabay

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