Graph formations refer to the geometric patterns that can be created by connecting the highs, lows, or other specific points of prices on a chart. These patterns can be used by technical analysts to determine the potential for future price movement and identify safe entry and exit points in a security or market. Some common graph formations include trend lines, channels, triangles, and head and shoulders patterns. Technical analysts use these formations in combination with other technical analysis tools, such as technical indicators and chart patterns, to build a comprehensive view of market conditions and make investment decisions.