Wednesday, October 6, 2010

Is Dark Brown Poop Ok

Technical analysis - Trend formations - the double top formation (M-Formation)

IMPORTANT: given here descriptions are very, very brief remarks by my guide to "technical analysis - the" technical analysis "for ordinary shareholders: 4 tools to predict the trend, which I have written specifically for equity beginners!

The double top formation can be seen easily on the two highs.


legend for the graph:
  • The thick zig-zag line at the top of the graph to represent the course line.
  • The horizontal line through the deep that lies below the two peaks of M is the level line. The
  • Bar in the lower part of the graph to represent the volume of development.
  • 1: The course line breaks the line level within 1-3 days by more than 3% of the market value.
  • 2: The volume is on high 2, only slight.
  • 1 + 2 : Is 1 and 2 are given, then this is a clear exit signal (1)!
  • 3: The minimum rate of waste resulting from the transfer of the vertical distance between the two peaks to the low of the M-formation below the opening.

Other observations:
The M-formation is mainly a formation of the primary (long term) trends.
It is also among Trend reversal formation - from up-in the downward trend.

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