Price patterns are the patterns formed on the charts due to behavior of the traders , based on the principles of the demand and supply of Dow theory.
They were discovered by the smart traders by the smart traders. The price pattern give much earlier signals compared to Dow theory and give definite entry levels, target levels and stop loss levels. The price pattern appear quiet frequently.
The double bottom, double top ,Head and shoulder, rounding bottom , flag and triangle are the some of the popular price pattern.
Rounding bottom , head and Shoulder pattern are seen rarely on the charts, but triangle, double top/ bottoms and flag are frequently seen on the charts.
Flag and triangle pattern give good risk reward ratio to the traders.
Traders should use the above price patterns to earn the money in the market, by applying knowledge and discipline in their trading.