Price patterns are trends that occur in stock charts used to forecast the prices. Deals with characteristics of trend.
Double Top – Two equivalent TOP with one month duration and high volume at the SECOND TOP and breakout at the previous BOTTOM.
Head and shoulder mainly happens during the DISTRIBUTION of stocks from strong hands.
CUP shape should be visible with line charts with longer duration.
FLAG – Rectangular shaped sideways movement can be considered as flag.
ENTRY PRICE – When it breakout the previous higher top.
EXIT PRICE -After the price movement reversed its direction.
STOP LOSS – Point where the breakout gap is filled.
TRIANGLE – Line chart pattern in the form of 5 waves should form a triangle shape while connecting the TOPS and BOTTOMS.