When to buy and Sell using Price Patterns?

[S Suresh]

Using price patterns if it is a double top then we should take short position. If the price pattern is double bottom, then we should take a long position. If the formation is a confirmed flag pattern then long position should be taken. If it forms a head and shoulder if it is bearish at the line break then short position should be taken. If it is an inverted head and shoulder and looking bullish then a long position should be taken at the line break of right shoulder. If the price pattern is triangle then depending upon who is strong the position should be taken accordingly. If the seller is strong at the breakout then short position and if the buyer is strong then long position should be taken. If the price pattern is round bottom or cup shape then long position should be taken to yield high returns.

[Rajesh kumar]

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, when cup gets filled we can go for long position

 

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

[VaibhaV SeshananD]

Cup pattern – Long position after the rounding bottom followed by increase in price with increase in volume.
Flag pattern – Long when the price gives a positive breakout with high volume.
Triangle pattern – Long when the triangle form breaks out in a positive trend with increase in volume.
Head and shoulder – Short position can be taken when the price breaks down the neck line.

[suraj]

You buy into when the stock crosses a major resistance on the upside and sell if it crosses the resistance on the downside after formation of the pattern on the charts.

[Praveen M]

When the price crosses a major counter party zone, either short or long position can be created based on the pattern formed before the crossing.

1. Double top – Short
2. Double bottom – Long
3. Head and Shoulder – Short
4. Inverted Head and Shoulder – Long
5. Flag – Long(if positive), Short (if negative)
6. Cup – Long when the cup starts to fill
7. Triangle – Long or Short based on the breakout

[Author]

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