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Random article: Continuation patterns
As it is clear from the title, continuation patterns signal about continuation of trends in the previous direction. The main patterns of this category are represented by the figures “Flag” and “Pennant”. Flag is a good signal of continuation of a trend when sharp movement is changed to a short pause. There are three forming states of the flag: first a strong vertical movement takes place (flagpole is shown), then flag figure appears during calm down, whereupon strong movement continues in initial direction.
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Popular article: Japanese Candlesticks
Trading with financial instruments on the Forex, a trader will always use price charts to analyze and predict movement of prices in the market. The simplest price chart is a line graph. It shows rates by one line. But there are other kinds of graphs that are more informative, for example, a Japanese candlesticks chart. It is not difficult to guess that historically Japanese candlesticks chart appeared in Japan in the XIII century. Candlesticks are used to display price quotations rates, commodity prices, stocks and others. "Japanese candlesticks" type of chart is often called configuration of interval and line graphics, because each element displays a range of changes in price for a certain period of time, for example, minutes, hours, days, weeks. Nowadays, they are one of the most popular methods for representing price movement.
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