Price patterns help us to understand the behaviour of price in the market. Whereas Dow Theory gives us an idea of the trend of the market. The charts which helps us to do this are Double Tops and Bottoms, Head and Shoulder and Inverted Head and Shoulder, Flag pattern, Triangle pattern. In double top we can determine whether to create a short position and vice verse for double bottom for a time frame of one month. In the case of head and shoulder it is an accumulation and distribution pattern with a time frame of three months. Rounding bottom and Cup patterns are accumulation patterns which helps us from a long term point of view. Flag pattern helps to analyse during the early stage of a trend and hence used widely. This reveals the trend from the prices of 3 to 7 days. In the case of Triangular Pattern it shows the strength of consolidation.
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Hi,
Your Question 1 :: Entry price, exit and stop loss in Flag?
Your entry should be just above the breakouts of the consolidation
Set a stop loss just below the flag formation
Your target should be based on the height of the flag