Progressing with Price Patterns

In technical analysis transitions between rising and falling trends are often signalled by price patterns.

Basically price patterns follow Dow theory. Price patterns give the characteristics behind the price movements

Double top, Double bottom, Cup, Flag and Triangle patterns are some of the most important and reliable price patterns.

Each price patters have some set of conditions to be qualified. If any of the conditions meet, we cannot qualify that pattern.

The trader needs to understand each price patterns and qualify them before taking the trading decisions.