Diagram method
Method of writing price changes for a certain period of time into a diagram. Commonly is called CHARTS.
CHART types:
1. Line - linear (reflects incomplete information)
2. Bar – proposes four prices:
 
High (highest price); Last, Close (closing price); Open (opening price); Low (lowest price)
3. CandleStick (Japanese candles) - if opening price is lower than the closing price the candle is red. If the opening price is higher then the closing price – candle is green.
 
A line, the price cannot break upwards is called a line of resistance (res), and a line the price cannot pierce downwards is called a line of support (sup). These lines are drawn at the Bar’s ends. They allow purchase-sell, give notice of some events and help to recognize a market situation.
The channel that is formed by two parallel lines (sup, res) is an optimal range for trading changes. Channel direction upwards or downwards determines market’s trend. When there is no trend the channel is horizontal and is called Range.
Reversal Patterns
Double Top - (bottom). It is a reversal pattern aimed at the top’s height which depends on the neck level.
1 – first top; 2 – second top; 3 – neck line.
Head & Shoulders
1 – left shoulder top; 2 –head top; 3 – right shoulder top; 4 - neck line.
Breaking the neck line price is a sign of the beginning of a powerful movement of the market against the previous trend. Usually prices move from the breaking point not less than half a height of a line from a head top to a neck line.
Trend continuation figures
Flag
Pennant
 Print version
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