Price patterns -Basics

Price patterns provide characteristics of price action on top of Dow’s market direction. Double top/bottom – Identify two equivalent top or bottom with a span of at least a month, the right top/bottom volume should be high, a break out below the neck line can be considered to enter position with a target of neck line height.
Head and shoulder is the trend reversal pattern which is also a distribution phase. HNS pattern forms with at least 3 months span where the LS with high volume and head being steeper in price and RS with low volume, distribution is almost over. Invert er HNS is accumulation phase, Bullish trend reversal pattern.
The cup or rounding bottom is a long accumulation period at least 6 months with low volume and less sensitive to market index, when the cup is filled long position shall be initiated, its a powerful pattern.
Flag is a trend continuation pattern, after a steep pole 75-80 deg rise side ways move of 3-7 days with low volume, no drift to bottom and break out upside .Triangle pattern occurs over a period of 45 days with prices top/bottom gets narrow with high volumes, brake out in any side could occur with good volume.In general around 70 % of the triangle area is expected.