Price patterns

Price patterns in technical analysis are the graphical formation of recognizable shapes in charts of the stocks. The known price patterns are
1. Double Top
2. Double Bottom
3. Head and Shoulder
4. Cup
5. Flag
6. Triangle.
Double Top is the formation of two equivalent tops in the chart of the stock. The conditions to be bearish trend are
1. Volume at the second top and at the point where previous low is crossed after the second top has to be high.
2. Duration between the two tops has to be minimum 20 days.
Double Bottom is the formation of two equivalent Bottoms in the chart of the stock. The conditions to be bullish trend are
1. Volume at the second Bottom and at the point where previous high is crossed after the second Bottom has to be high.
2. Duration between the two Bottoms has to be minimum 20 days.
Head and Shoulder is a type of price pattern where three highs are formed and the middle high is the peak and the other two highs are equivalent tops. The middle peak is called as Head and the other two highs are called as Shoulders.
Rounding bottom or cup pattern is a type of price pattern where the rounded bottom is formed in the chart of the stock. It takes longer time to form. The volume is low during the rounding bottom.
Flag is a type of price pattern where steeper pole is followed by a rectangular sideways movement. Takes 4-7 days to form.
Triangle is a type of price pattern where the upward trend and downward trend converges to form a triangle. The conditions are
1. 5 Wave corrective patterns (A-B-C-D-E) should form a triangle shaped structure.
2. The triangle area should be minimum 1.5 months.