When to buy and Sell using Price Patterns?

[canute]

 

1. CUP Pattern : Is gradual Accumulation are generally powerful if it takes long time to construct the correlation between the market to the stock should be low during the MID of pattern. Generally the inverted CUP is rare as distribution takes place in short span of time.(Long Term).

2. Flag Pattern : A Steeper Pole rectangular shaped sideways movement can be considered as flag, generally takes less time to form, Positive Pole Flag should give positive break out, Volume is expected to increase while giving breakout.

3. Triangle : Bearish variant is equally powerful, 5 wave corrective pattern A,B,C,D,E, should form a Triangle Area should be minimum 1.5 months, Triangle breakout expected around 70% Zone, Volume required to confirm breakout.

[vasanth]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Cup pattern – Long position after the rounding bottom followed by increase in price with increase in volume.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Flag pattern – Long when the price gives a positive breakout with high volume.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Triangle pattern – Long when the triangle form breaks out in a positive trend with increase in volume.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Head and shoulder – Short position can be taken when the price breaks down the neck line.</span>

[Angelin Monica]

when demand > supply buy

when supply > demand sell

[Aravind S]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”></p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>If double top or head shoulder pattern appears, the short position can be created once the price goes below the neckline. In the same case, when double bottom or inverted head and shoulder appears, the long position can be created once the price goes above the neckline.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>If flag/inverted appears, the long/ short position can be created after the breakout with high volume and only when the trend moves on the same direction.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>If triangle is seen, the breakout can happen at any direction and the long/short can be placed based on whether it is bullish/bearish.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The cup pattern mainly happens for accumulation and once the cup pattern is identified, the long position can be created.</p>

[Denis]

Price patterns

Double top — short position

double bottom—long position

Cup—long position

flag–long position or short position

triangle–long position or short position

Head and shoulder–short position

Inverted head and shoulder–long position

[Author]

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