Price Pattern is a pattern within a chart when the prices are graphed. Price pattern plays a major role in technical analysis of the stock. When data is plotted there is usually a pattern which naturally occurs and repeats over a period of time. The pattern is used to identify the continuation or reversal signal.

There are 8 types of price patterns: Double Top, Double Bottom, Head and Shoulder, Inverse Head and Shoulder, Round Top, Round Bottom, Flag and Triangle Pattern.

The following patterns determine the bullish trend:

  1. Double Bottom
  2. Inverted Head and Shoulder
  3. Rounded Bottom / CUP

The following patterns determine the bearish trend:

  1. Double Top
  2. Head and Shoulder
  3. Rounded Top

The following patterns have both the trends:

  1. Flag Pattern
  2. Triangle

The above price patterns are vital in technical analysis and the result achieved is accurate.


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