Price patterns will be useful to identify short term trend by using 3 types of pattern we can identify the stock is bullish or bearish and we can create positions accordingly

  • : Cup Pattern Flag Pattern Triangle Pattern
  • : Price Patterns can be used for short term which is from 4 days to 1.5 months time, whereas dow theory will not not short term trend
  • : Tow equivalent tops with high volume and and minimum duration should be 20 days. If the price goes below previous low, it is bearish trend
  • : Two equivalent bottom, with high volume, and minimum 2 months duration. If the goes above previous high it is bullish trend
  • : Head and shoulder is pattern formed two lows in between lowest. If it goes below previous low it is bearish trend
  • : Head and shoulder is pattern formed two highs in between highest. If it goes below previous high it is bearish trend, volume should be low
  • : Cup patterns will take longer time to construct, if the volume is during cup pattern it is bullish trend
  • : Flag pattern should have steeper pole 75-80% with rectangulat side ways move. It takes 4-5 days, positive pole will give positive break out with increase in volume
  • : Entry price should be above previous high, stop loss is previous low and same value can be taken as target
  • : 5 waves can be considered as triangle pattern, with minimum 1.5 months duration, triangle break out should be at 70% zone, with voume to confirm break out
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