Price Patterns

In this section learnt about various patterns.

• What are price patterns in technical analysis?: Price patterns are use to identify the supply and demand zones.
• How price pattern are different from Dow Theory?: It gives early signal than the dow theory
• What is Double Top? What are the conditions to determine the bearish trend?: Two equivalent tops with high volume at second top or at crossing of the neck line
• What is Double Bottom? What are their conditions to determine the bullish trend?: Two equivalent bottoms with high volume at second bottom or at crossing of the neck line
• What is Head and Shoulder? What are their conditions to determine the bearish trend?: out of scope
• What is inverted Head and Shoulder? What are their conditions to determine the bullish trend?: out of scope
• What is rounding bottom / Cup pattern? What are their conditions to determine the bullish trend?: out of scope
• What is FLAG pattern? What are the conditions to qualify as perfect FLAG?: steeper pole with rectangular price movement. volume should be low during flag movement. duration is very short.
• What should be Entry price, Exit Price and Stop loss for Flag Pattern: Enter when the price breaks on the same side of the pole and stop loss should be the low side of the rectangular price movement area.
• What is triangle pattern? What are the conditions to qualify as perfect triangle?: Triangle pattern forms as a wave of five A,B,C,D,E. Indicates trend consolidation. Requires min.45 days to form, volume should be high during breakout. while joining the tops and bottoms looks like a triangle