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September 6, 2015 at 11:46 AM #8357
A Price patterns is a recognizable configuration of price movement that is identified using trend lines. Based on the signals given by Price patterns they are classified as Reversal and Continuation patterns.
Types:
Pennants: Constructed using converging trend lines
Flags: Constructed using Parallel trend lines
Wedges: constructed with two converging trendlines, where both are angled either up or down
Reversal Patterns:
A price pattern that signals a change in the prevailing trend is known as a reversal pattern.
Types:
Head and Shoulder pattern:
Head and shoulders patterns can appear at market tops or bottoms as a series of three pushes: an initial peak or trough, followed by a second and larger one and then a third push that mimics the first . An uptrend that is interrupted by a head and shoulders top pattern may experience a trend reversal, resulting in a downtrend. Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside.
Double Tops and Double bottoms:
Double tops and bottoms signal areas where the market has made two unsuccessful attempts to break through a support or resistance level. In the case of a double top, which often looks like the letter “M,” an initial push up to a resistance level is followed by a second failed attempt, resulting in a trend reversal. A double bottom, on the other hand, looks like the letter “W” and occurs when price tries to push through a support level, is denied, and makes a second unsuccessful attempt to breach the support level.
September 6, 2015 at 8:01 PM #8453price pattern is a type of analytical tool
September 6, 2015 at 11:44 PM #8527a price pattern is a recognizable configuration of price movement that is identified using a series of trend lines or curves… When a price pattern signals a change in trend direction, it is known as a reversal pattern, a continuation pattern occurs when the trend continues in its existing direction following a brief pause…
September 7, 2015 at 11:30 PM #8666<p style=”text-align: right;”>A price pattern is a sign of future price movements or a trading signal, we can identify the current trends ,the price pattern can be a continuation pattern or a reversal pattern</p>
September 8, 2015 at 1:18 PM #8688Price patterns are identifiable sequences of price bars that appear in technical analysis charts. This can be used by the
technical analysts to examine the past price movements and predict future ones.
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