price pattern tells us the characteristics of the demand and supply earlier. Dow theory fails here. double top/ bottom, flag pattern, triangle pattern, cup pattern, head and shoulder pattern.
Devi Sampath, , Price Patterns, Double top bottom, flag pattern, Head and Shoulder, Rounding bottom / Cup pattern, triangle pattern
Hi,
This is an appropriate trade plan for bullish flag pattern:-
Your entry should be just above the breakouts of the consolidation range
Set a stop loss just below the flag formation
Your target should be based on the height of the flag
Trade plan for triangle pattern-
Entry Price = Breakout point just above the upper trend line for buying and break down point just below the trend line for short selling.
Exit Price = the height of a triangle at its base or widest part from the entry point.
Stop Loss = just outside the pattern on the opposite side from the breakout point. For example, if buying an upside breakout, place the stop loss just below the lower trend line and if going short on a downside break out, place a stop loss just above the upper triangle trend line.