Price pattern-double top-double bottom-head & shoulder-inverse head & shoulder-triangle pattern-rounding bottom/cup pattern-Flag pattern-Entry price, Exit Price and Stop loss

  • : transitions between rising and falling trends are often signaled by price patterns
  • : Dow theory explains the movement of the trend with respect to demand and supply, whereas price patterns explains the nature and characteristics of the trend and also its significance
  • : 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.
  • : A double bottom will typically indicate a bullish reversal which provides an opportunity for investors to obtain profits from a bullish rally.
  • : The head and shoulders pattern forms when a stock's price rises to a peak and subsequently declines back to the base of the prior up-move. Then, the price rises above the former peak to form the "nose" and then again declines back to the original base.
  • : similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends.The Inverse Head-And-Shoulder pattern is an example of a bullish reversal pattern.
  • : A rounding bottom is a chart pattern used in technical analysis and is identified by a series of price movements that graphically form the shape of a "U". Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements.This is followed by a range pattern, which ultimately shifts into a slow gradual increase. This increase ultimately leads to a bullish move.
  • : The flag pattern is used to identify the possible continuation of a previous trend from a point at which price has drifted against that same trend. Formation of a steep pole. The price movement in the sideways forming a rectangle. Takes lesser time to form. Positive pole flag should give positive Break out and vise-versa. There should be a significant volume during break out.
  • : 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
  • : contraction in price range and converging trend lines, thus giving it a triangular shape 1) There should be a 5 wave Corrective pattern to form a triangle shaped structure. 2) The triangle area should be minimum of 1.5 months. 3) The break out is expected at around 70% zone and volume is required to confirm the break out
  • : pl explain head & shoulder
1 Comment
  1. Naresh 1 month ago

    In response to your question

    Your Question 1:: explain head & shoulder
    The formation of Head and Shoulder has been a continuous decrease in volume. That means the volume will be higher in the left shoulder and eventually it decreases with the formation of the head and right shoulder. The main process of the head and shoulder pattern is accumulation and distribution. The duration to form each should be a minimum of 1 month.

    Watch the below video…..I hope this will help you

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