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Price Patterns

Price pattern tries to explain the price behavior which helps to give an early indication of price movement. There are various price patterns. Double bottom, flag pattern, inverted head & shoulder pattern gives the bullish trend signal. Whereas double top, head & shoulder, inverse flag give bearish trend signal. The cup pattern & inverted head & shoulder are accumulation pattern whereas head & shoulder is distribution pattern. The triangle pattern is very powerful & its trend will be decided by the direction of breakout. These price patterns can be utilised to make proper trade plan i.e. to decide entry & exit price, stop loss.

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