different types of patterns and what are their characteristics and how the prices are identified and when to buy and sell.

  • : In technical analysis transitions between rising and falling trends are often signaled by price patterns.
  • : Dow theory gives demand and supply based on the market trend But price patterns gives the characteristics or early signals to buy or sell.
  • : Two equal tops are identified within a span of 1 month and trade volumes are high on the second bearish trend is determined when the stock price reaches the previous low
  • : When the daily price is plotted with line charts, there should be two visible equivalent bottoms with the duration of 1 month timeline with high volume in second bottom. Time duration 1 – 1.5 months Volume should be high in second bottom
  • : In between the Double top pattern long High top is exist is called as Head and shoulder. L.S volume should be greater than R.S volume. Time period for occurrence is 3 month. Head should be highest among the recent price. Short position is considered below the neck line.
  • : Inverted head and shoulder pattern is the reverse of head and shoulder pattern. two lower bottom in between the two lower bottom lower long bottom is identified. Left Shoulder and right hand shoulder neckline should be straight volume of L.S should be higher and Volume of R.S should be lesser Time taken occurrence for each shoulder must be one month total 3 month period of time
  • : Cup shape should be visible with line charts with longer duration. During the rounding bottom the volume should be low. The bullish trend can be confirmed once it breaks the two peaks of the cup with significant volume.
  • : A flag pattern can happen at the early phase of the trend.The steeper pole present in inclined at 70 to 80 deg for minimum 2 days price movement and side way movement for 3 to 7 days and when breakout the side way movement with high volume in upper direction, then we understand the trend is up. Conditions: A steeper pole rectangular sideways trend that should not drift downwards. positive breakout on the same side with high volume Takes 2 weeks to form this pattern
  • : Entry price should be just after the breakout Exit price should be just after the price movement has reversed its direction Stop loss should be at the point where the breakout gap is filled
  • : In Triangle pattern consecutive tops and bottoms are identified It depicts both buyers and sellers are aggressive Each top is lower than the previous top, each bottom is higher than the previous bottom The line joining all the tops and bottom follow the triangle
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