Price pattern-an overview

Study of how the candle stick forms in connection with previous candle or a few would suggest about the psychology of the trader. So we have to focus on Dow theory with price pattern for success and accurate determination of trend/trend reversal. Double top is a signal for the exhaustion of the uptrend and initiation of the down trend. It has to be combine with high volume to confirm. Head and dhoulder is the Formation of Head like structure and in addition to two shoulder formation below the head. It confirms the downtrend. Formation of two or more long bullish signal followed by small consolidation phase with three or four candle and subsequent bullish formation.