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Double top and bottom : When the trend crosses the neckline with high volume breakout the we can buy in double bottom pattern and sell in double top pattern and the period should be min 20 days
Head and shoulder : When the trend goes below the neckline with high volume then we can create a short position
Cup : Long position can be created when the price is starting to go up
Flag : Long position can be created if the stock is giving the same side break out and the volume should be high
Triangle : Long position can be created on break out which happens at 70* and a major trend is expected and it takes around 100 days
Double Top : Short position can be considered below previous low.
Double Bottom : Long position can be considered above previous high.
Head and Shoulder : Short position can be considered while breading down the neck line.
Cup pattern : During the rounding bottom, the volume is expected to be low as possible.
Flag pattern : Positive pole flag will give positive breakout. Volume is expected to increase while giving breakout.
Triangle : Long position can be create when the triangle breakout is upwards.
Double top: Short position; sell when price is at previous bottom, buy after price falls (exit price).
Double Bottom: Long position; buy when price is at previous top, sell after price has risen (exit price).
Head and shoulder: Short position; sell when price is at previous bottom, buy after price falls (exit price).
Inverted head and shoulder: Long position; buy when price is at previous top, sell after price has risen.
Cup pattern: Buy when cup pattern has ended and price is bit high; sell at exit price.
Flag pattern: Long position; buy when flag has ended and price is bit higher than previous top, sell at exit price
Triangle pattern: Buy when triangle pattern has ended and sell at exit price.
depending on the type of pattern and when all the conditions are met (time , volume, the appropriate pattern) we create long or short positions after the breakout point of the particular pattern by setting target profit and stop loss.
Using Price patterns we should determine which pattern the stock forms,
if it forms double top, we should take short position.
if it forms double bottom, we should take long position.
if it forms flag, we should take long position.
if it forms head and shoulder, we should take short position.
if it forms cup, we should take long position.
If it forms triangle, we can take long position.
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