We have studied around 6 price patterns. Head and shoulder, Cup pattern, Double top, Double bottom, Flag pattern and Triangle pattern. All these patterns provide an early signal price movement. Each pattern has it’s own time span and volume.

  • : Double top, Double bottom, Head and Shoulder, Cup pattern, Flag pattern and triangle pattern.
  • : Price patterns provide an early signal of price movement, whereas dow theory doesn't provide any signal.
  • : For double top, spot two equivalent tops with time span of min 20 days with high volume on the right top. If the price moves below the bottom in between the tops we can consider it as bearish trend.
  • : Double Bottom is same as double top but inverted. Min time span should be 20 days, volume should be higher on the right bottom. If the price moves above the top in between two bottom then it is considered as bullish trend.
  • : Head and shoulder is an distribution pattern, Spot a 3 tops with equivalent right and left tops called as shoulder and the middle one should be taller called head. Min time span should 3 months. Volume should be high on the left shoulder. If the price moves below the left neck line, it is a bearish trend.
  • : Inverted head and shoulder is an accumulation pattern, It's same as head and shoulder but inverted. time span should be 3 months. If the price moves above left neck line, it is considered as a bullish trend.
  • : Cup pattern is an accumulation pattern. It takes very long time to form the pattern, the bottom of the cup should have a vert less volume. If the cup starts filling we can consider it as a bullish trend.
  • : Flag pattern, occurs after a steep bullish trend the price starts moving horizontally with less volume. The flag forms forms for a time span of 3 to 7 days. Positive breakout is expected to happen after the flag.
  • : Entry should be done after confirming with flag conditions. Exit would be comparing to previous resistance level. If the flag pattern drifts downwards we should exit form the position.
  • : In triangle pattern, the stock traded within a certain price range forming a visual like triple top or triple bottom the support and ressitance price becomes closer for each top and bottom. Breakout happens at 60% to 75% of that triangle. Breakout may be positive or nagative.

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