Price Pattern: Tool for Value Investing

Price pattern are a recognizable sequence of price movement on a chart. These patterns can be used to analyse past price movement and to predict further price action. It gives a signal of possible trend reversal or whether the signal is false. Price pattern are formed over a period of time. the study of price pattern gives idea about proper entry, exit and stop loss for a trade. There are diff types of price pattern. Some of the popular ones are- double top, double bottom, head & shoulder, inverted head & shoulder, flag. triangle , cup. Price pattern also takes volume into consideration. Price pattern can be used to get into a trade at appropriate time for a long term investment.