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Topstep Futures Technical Analysis 101

Technical analysis is the study of historical price movements and other market data to identify patterns that may predict future price movements. It is a popular tool used by futures traders to identify potential trading opportunities. Check out the library of technical patterns below to start incorporating these strategies into your trading toolkit.



Triangle patterns are a common technical analysis tool used by futures traders to identify potential reversals or continuations in price trends. They are formed when prices trade within a converging range between two trendlines. There are several types of triangle patterns: ascending, descending, expanding, and symmetrical.


Example of a triangle pattern in technical analysis



Flags, pennants, and wedges are all continuation patterns that can be used to identify potential trading opportunities in futures markets. They are all characterized by a period of consolidation after a sharp move in price.


Example of flag pattern in technical analysis.



Continuation and reversal patterns are used in technical analysis to identify potential turning points in the price of a security. Continuation patterns suggest that the current trend is likely to continue, while reversal patterns suggest that the current trend is likely to end and be replaced by a new trend in the opposite direction.


Example of a head and shoulders technical pattern.



Support and resistance are two of the most important concepts in technical analysis. They are levels on a chart where buyers and sellers are likely to come into balance, resulting in a pause or reversal in the price trend.


Simple example of support and resistance in futures trading.