What are Price Patterns?

[ROOBINI.N]

Price patterns helps us to identify price movements in the market.

[shalini]

Price patterns are indicators of market behaviour which gives us an early indication of price movement.

[Johnson]

Price patterns are formations which appear on the price charts of stock or commodities that can be classified into different categories and that have predictive value.

The most commonly used patterns are

Head and shoulder

Double top and  bottoms

cup pattern

Flag pattern

Triangle pattern

 

 

[Balaji]

Price patterns generally gives us the characteristics about the price movement.

[Ramanathan Chidambaram]

DOW theory – Its a golden theory, but it failed to give information about the characteristic/quality of the trend. Moreover it gives the information about the trend bit later.

Price patterns – It follows the DOW theory and in addition to that, it gives early signals as well. It gives clear information about the trend, quality and characteristic of the stock.

[Author]

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