Price Pattern is a pattern with in a chart when the prices are graphed. Price pattern plays a major role in technical analysis of the stock. When data is plotted there is usually a pattern which naturally occurs and repeats over a period of time. The pattern is used to identify the continuation or reversal signal.
Price patterns follows Dow theory but provides early indication on price movement. These patterns are seen in the market on various scenarios and expected to follow the defined trend once the pattern occurs.The patterns are visualized through charts with defined timeline, which helps to analyse the market situations and indicates when to place long/short positions.