In technical analysis, transitions between rising and falling trends are often signaled by price patterns. By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trendlines and/or curves. A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs.
A double bottom has a ‘W’ shape and is a signal for a bullish price movement. Head and shoulders pattern is a chart formation that appears as a baseline with three peaks: The outside two are close in height and the middle is highest.
A cup is a technical chart pattern that resembles a cup and handles where the cup is in the shape of a “u”. A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole).
Triangle chart pattern forms 5 wave corrective pattern (A-B-C-D-E). The Triangle area should be a minimum of 1.5 months. Volume is required for breakout

  • : In technical analysis, transitions between rising and falling trends are often signaled by price patterns. By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trendlines and/or curves.
  • : Dow theory indicates the direction of the price movement while Price patterns are a subset of Dow theory, which gives an early indication on the price movement and helps to understand the characteristics.
  • : A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs. Conditions are: It should have two equivalent tops Volume should be high at point B or point C and duration should be minimum 2 days
  • : A double bottom has a ‘W’ shape and is a signal for a bullish price movement. Conditions are: Two equivalent bottoms Volume should be high at point B or point C duration should be a minimum of 20 days Long positions can be considered above price high
  • : Head and shoulders pattern is a chart formation that appears as a baseline with three peaks: The outside two are close in height and the middle is highest. Left shoulder: Price rise followed by a price peak, followed by a decline. Head: Price rise again forming a higher peak. Right shoulder: A decline occurs once again, followed by a rise to form the right peak, which is lower than the head
  • : An uptrend that is interrupted by a head and shoulders top pattern may experience a trend reversal, resulting in a downtrend. Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside. Investors typically enter into a long position when the price rises above the resistance of the neckline. Left shoulder: Price declines followed by a price bottom, followed by an increase. Head: Price declines again forming a lower bottom. Right shoulder: Price increases once again, then declines to form the right bottom.
  • : A cup is a technical chart pattern that resembles a cup and handles where the cup is in the shape of a “u”. Cup patterns take a longer time to construct and volume is expected to be low. The correlation between the market to the stock should be low during the MID pattern.
  • : A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole). Conditions are: Steeper pole with approximately 70 degrees steep Rectangular movement should happen within 3 to 7 days) The flag should not drift down, if happens flag significance will be lost.
  • : Entry price should be at a breakout above the upper pennant line. Exit price should be just after the price movement has reversed its direction Stop-loss should be at the point where the breakout gap is filled
  • : Triangle chart pattern forms 5 wave corrective pattern (A-B-C-D-E) The Triangle area should be minimum 1.5 months Volume is required for breakout
1 Comment
  1. Naresh 9 months ago

    Hi,
    Those of your content is neat and clear. Hop it will be useful to recall

Leave a reply

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2022 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

Log in with your credentials

Forgot your details?