Price pattern are very important to understand the market. There are many price patterns in technical analysis like double top, double bottom, cup pattern, flag pattern and triangle pattern etc.
Double top denotes bearish trend. Double bottom denotes bullish trend. Cup pattern denotes long accumulation phase for a long time and makes way for break out.
Flag pattern forms in a shorter duration and gives a positive break out.
Triangle pattern denotes a corrective phase of the market and it gives a break out positively, after formation around 70 % of the zone of triangle.

1 Comment
  1. Naresh 1 year ago

    Hi,
    This is an appropriate trade plan for bullish flag pattern:-
    Your entry should be just above the breakouts of the consolidation range
    Set a stop loss just below the flag formation
    Your target should be based on the height of the flag

    Trade plan for triangle pattern-
    Entry Price = Breakout point just above the upper trend line for buying and break down point just below the trend line for short selling.
    Exit Price = the height of a triangle at its base or widest part from the entry point.
    Stop Loss = just outside the pattern on the opposite side from the breakout point. For example, if buying an upside breakout, place the stop loss just below the lower trend line and if going short on a downside break out, place a stop loss just above the upper triangle trend line.

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