Pillar Of Stock Building

Based on volume and price we can identify near term condition of a stock with some patterns to verify the near term trend. So there are few price patterns available. 1. Double top/bottom pattern. 2. Head and shoulder pattern. 3. Inverted Head and shoulder pattern. 4. Cup pattern. 5. Flag pattern. 6. Triangle pattern. There should be an equivalent top. Volume should be high either on second top or breaking point (Lowest between first and second top) after second top. The duration between the first top to second top should be minimum 20 days. If the price breaks neck line then it should be consider as a bearish trend.Head and shoulder pattern appears because of urgency in selling from stronger hand. It should form human head and shoulder pattern and there should be minimum period of 1 months for each formation. left shoulder should have a higher volume and right side shoulder should have lower volume. Short position is formed if it break neck line. Cup pattern is a slow accumulation of stocks of a stronger hand it will take years for sometime.volume should be low on these days. It should form a cup bottom pattern. The correlation between market and stock should be as low as possible during the mid of cup pattern. Flag pattern should be formed after a steep pole. It should break high of flag to qualify for the perfect flag. it will take just 4 to 7 days to form. Volume should be increased during breakout. Flag should not drift lower.Triangle type formation should be formed =. Minimum one and half month time required to form triangle and volume should be high during a breakout. It can happen on any side.