Price pattern are used to identify the movement for market using trendlines or curves
it is same as double bottom where there are two bottom with same price level A double bottom has a ‘W’ shape and is a signal for a bullish price movement.
double top is same as double bottom but will look as M and signal a bearish signal
other important pattern are flag and triangle r seen below
- : Price pattern are used to identify the movement for market using trendlines or curves
- : Price patterns are subset of Dow theory, which gives early indication on the price movement and helps to understand the characteristics.Dow theory indicates the direction of the price movement and helps to derive the treng
- : we can find double top when there are two top with same price level . A double top has an 'M' shape and indicates a bearish reversal in trend
- : it is same as double bottom where there are two bottom with same price level A double bottom has a 'W' shape and is a signal for a bullish price movement.
- : Head and shoulder mainly happens during the distribution or accumulation of stocks from strong hands.this form with 3 months duration condition of bearish trend when left shoulder have high volume and head has the highest volume followed by a low volume right shoulder
- : Inverted Head and shoulder is pattern formed after a downtrend condition to determine the bullish trend the left shoulder have high volume head should decline and form a lower bottom the right shoulder have no volume
- : where the cup is in the shape of a "u" and the handle has a slight downward drift. A cup and handle is considered a bullish signal extending an uptrend.is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern's formation may be as short as several weeks
- : A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move. Usually a breakout from the flag is in the form of continuation of the prior trend it generally takes less time to form (4-7 days to form)
- : Wait until the price has broken out of the Flag’s upper trend line in the direction of the original uptrend. Place entry order once the candle that has broken out of the flag pattern has completed. Stop Loss : The stops for the bullish flag are placed just at the low prior to the break out from the bullish flag.
- : A triangle is a chart pattern, depicted by drawing trendlines along a converging price range, that connotes a pause in the prevailing trend.