In this video we want to look forward the basic and easiest chart formations that we know. So the most classical ones and the first one I want to show you is here and the ducks in German index is a classical triangle and this classical triangle is nearly to the trend formations because if we look the hypotenuse of the triangle is like and trendline. And if we are looking for these trend formations and on this triangle formations, we don't want that the chart get over the trendline. Okay, and if we now build the triangle Around this first of all, they are the positive and the negative triangles and discipline is a negative triangle. So, the cause or the stock price index price in this in this form sorry. So, what we see is does the stock price fall down through the triangle okay and we are looking for this formation in the negative one.

So, negative trendline and if we build around those triangle we can see that we have a negative triangle and that we can see here we will also make a few more in the, in the practical and module. So, we are don't look into child actually for all four Because it's quite tricky to always find them, but I want to show you the positive try angle. So that would be the normal positive triangle. Okay, so this is the formation and what we want is that chart comes in here and don't get through this trendline here, okay also the hypotenuse of the, of the triangle. The chart shouldn't go under this line and go up and up and up and up. That would be the positive trend line.

So the next one, what I will show you hear in the wire, can't talk on the desk. It's And this is a classical, really classical v bottom. So as you can see we have a bottom in the in the chart and looks like in V and V bottom is characteristic for a really short sell off. Maybe a short, Big Short in the market. However, in this case here and wildcard it's because of it because of negative news. And, and that's created, the V bottom here and the sell off.

So the characteristics from the V bottom is after it happens. Normally the child raises up so we have a long time of positive trending. However, in In this case, it was also the news flow. But to show you the V button, that's Yeah, what is the next one is also here in this chart is the double top. So we have the double top and a double down in the chart analytics, and this one here is to double top, which easily means we have two jobs. So in the first top is here, and the second is here, and carried characteristically for the double top formation is that we have a little sell off between them or a sideway trend between those double tops, and if there appears in double top, the cause normally fold in because there's the double top and then falling prices.

On the other hand, if we have to double down, normally the course will raise up. So that's for the declaration of the double top and double down. And the much more interesting thing is that double top and double down is nearly to a bull and bear traps. So what is in bull and what does it be a trap? do normally or normally we say that the people who are long in the market so they think prices will rise up and get higher that are normally the bolts. And on the other hand, they won't they're more negative and say no, the prices will fall that are the beers and on the market.

There is really much psychology and that's why we are here. bull and bear traps. So, we are want to get the bull or the beer in the trap and I will show you this one and here this is a classically bull trap. So what does it mean? We have the causes raising up okay we have first high here and after after we we have to fast Hi, this is a really short period of time when of course is quite normal again and then we have the next higher time. So, the investors think well Okay, nice stocks goes higher and higher good for me I want to invest in this stock.

And what happens then is they buy and they get more money in the market. And that's the classic Keep classically bull trap then what we see is after this after the next high there's a desk the trap and then the course falling down. So normally the beautiful bull trap is in in this line so the booth like would be ending here and what what's happened here is good for the for the beers and for the one who shorting the stock. However, it's not for a classically bull trap. So this area here and this is the classically bald trap. And if you know look for the for the double tops and the bull trap, you also have deformations formation of two tops and then falling courses and On the other hand, we have exactly the same but opposite, we have to be trapped.

And we have we have to double double down. Okay, so it's quite interesting how they work together. And now we want to look for something more, but let's look for a flag formation maybe. So basically we could say 123. So basically you can say that we have here negative flag for mation. Because to make this exactly here, to cause should hit at the downside or the lower side of our trend, trendline and after this hits here and goes in this formations, and doesn't break out on the upper trendline we have a classic negative flag.

Just show you. This is just a gimmick. You don't need this one. So as you can see, so, as you can see we have some flag formation. Yeah, that's why calling flag formations. It's that easy sometimes.

And what normally happens if we have a negative flag formation, the cause will fall down. Okay? And also, this in combination. The flag formation is All depends on two trend lines and building a flag. And so there's another combination. However, we can't find a positive flag for this time and there are also the basically formation of neck, shoulder and neck, shoulder neck shoulder.

So, and what does it mean is that we have formation with King which looked like this. Let me So, shoulder head shoulder, short for sh s is an absolutely negative trending signal. And looking like this, we have shoulder head shoulder and that's why it's called like this. And if if now we would have this formation it needs to be so yellow wants to course it needs to go goes down on this point okay, let's let's say we have an imaginary line and their shoulders should be on the same level more or less on the same level okay. And if the course on this side will go under, will move under the imagine line. Then, we see that the cost will falling Really hardly downwards.

And there's the basically shoulder to shoulder formation. And yeah, that's for the classical transformations, we will use a lot of them and practical power. So let's just the first part for you to know. And we will also make the combination of different techniques and chart formations, just for you to see how they work together. Yeah, and that will we will see in the practicing module then. So that's all for now for the basic chart formations.

And see us in the next video.