What are price patterns in technical analysis?
Price patterns are identifiable sequences of price bars that appear in technical analysis charts. These patterns can be used by technical analysts to examine past price movements and predict future ones for a particular trading instrument. Readers should already be familiar with trendlines, continuation price patterns and reversal price patterns.
How price pattern are different from Dow Theory?
price pattern is a recognizable configuration of price movement that is identified using a series of trendlines and/or curves
Dow Theory is that market price action reflects all available information and the market price movement is comprised of three main trends
What is Double Top? What are the conditions to determine the bearish trend?
A double top is a term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.
What is Double Bottom? What are their conditions to determine the bullish trend?
The Double Top Reversal is a bearish reversal pattern typically found on bar charts, line charts and candlestick charts. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.
What is Head and Shoulder? What are their conditions to determine the bearish trend? *
In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns.
Top Shoulder, top head, top shoulder formation with 3 months duration is bearish trend.
What is inverted Head and Shoulder? What are their conditions to determine the bullish trend?
Inverse Head and Shoulders (Head-and-Shoulders Bottom)
The inverse head-and-shoulders pattern is the exact opposite of the head-and-shoulders top, as it signals that the
