In technical analysis, changes in stock prices are often signaled by price patterns. When a price pattern signals a change in trend direction, it is known as a reversal pattern; a continuation pattern occurs when the trend continues in its existing direction following a brief pause. Technical analysts have long used price patterns to examine current movements and forecast future market movements There are some important price pattern as under: 1. CUP Pattern 2.Flag Pattern 3.Triangle Pattern.

  • : In technical analysis, changes in stock prices are often signaled by price patterns. When a price pattern signals a change in trend direction, it is known as a reversal pattern; a continuation pattern occurs when the trend continues in its existing direction following a brief pause. Technical analysts have long used price patterns to examine current movements and forecast future market movements There are some important price pattern as under: 1. CUP Pattern 2.Flag Pattern 3.Triangle Pattern.
  • : Dow theory explains the movement of the trend with respect to demand and supply, where in price patterns not only tells us about the trend but also shows us different patterns to know where the price is going to move in the near future.
  • : A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs. Conditions: 1. Two equivalent top. 2. Volume should be high after the second top. 3. Duration is minimum 20 days. 4. Short positions can be considered below previous low.
  • : Two bottoms at the exact same price, as long as these two lows are at a similar price, it is considered to be enough for the validation of a pattern. Since the pattern is initiated by the downtrend and finalized in an uptrend, the double bottom pattern is considered to be a bullish reversal pattern. Conditions: 1. Two equivalent bottom. 2. The volume at second bottom or when breaks the previous top. 3. Duration is minimum 20 days. 4. Long positions can be considered above previous high.
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  • : The cup pattern is accumulation pattern. It usually takes a longer term (more than a year) Volume is low in the bottom long position can be created when the cup is filled.
  • : A steeper pole pattern with rectangular shaped sideways. It takes 4-7 days. Generally sellers will not actively participate and suddenly volume is expected to increase while giving breakout.
  • : Entry price should be just after the break out. Exit price should be just after the price movement has reversed the direction. Stop loss at the point where the breakout gap is filled.
  • : When both buyers and sellers are aggressive triangle pattern is formed. The triangle area should be minimum of 45 days. Breakout is around 70% zone and volume is required to confirm the breakout.
1 Comment
  1. Naresh 8 months ago

    Hi,
    Nice work! we really appreciate your efforts.

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