Price Patterns – Knowledge Check

In technical analysis, transitions between rising and falling trends are often signaled by price patterns. By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trend lines and/or curves.Price Patterns gives characteristics of demand and supply. 3 major patterns Cup, Flag, Triangle.Cup is 20 days , flag is 4-7 days and triangle is 45 days to form. When price reverses after a pause, the price pattern is known as a reversal pattern. Examples of common reversal patterns include:
Head and Shoulders, signaling two smaller price movements surrounding one larger movement
Double Tops, representing a short-term swing high, followed by a subsequent failed attempt to break above the same resistance level
Double Bottoms, showing a short-term swing low, followed by another failed attempt to break below the same support level