Price pattern gives the characteristics behind the price movement . Double top, Head and shoulder, Cup , Flag and Triangle are the price patterns in technical analysis..A price pattern is a recognizable configuration of price movement that is identified using a series of trendlines and/or curves.
Since price patterns are identified using a series of lines and/or curves, it is helpful to understand trendlines. Trendlines help technical analysts spot areas of support and resistance on a price chart. Trendlines are straight lines drawn on a chart by connecting a series of descending peaks (highs) or ascending troughs (lows). A trendline that is angled up, known as an up trendline, occurs where prices are experiencing higher highs and higher lows. Technical analysts have long used price patterns to examine current movements and forecast future market movements.
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