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a triangle pattern doesn’t require a steep slope as in the case of a flag pattern. two tops and two bottoms are connected with a straight line and the line is extended. the prices move within those lines as there is aggressive selling and buying taken place. a triangle pattern is fully dependent when the breakout happens at 70% of the triangle. it make minimum of 45 days to form a triangle pattern.
price patterns give a detailed and more dependent view of the movement of the stock as different price price patterns have different opinions and theories. it really help a lot apart from Dow theories it shows and easily explain other complicated movements of the charts too.
1.two equivalent top is formed within the duration of 1 month.
2.high volume should be in the second top.
3.if the price crosses the previous neckline then short position can be created.
the buying /selling should take place only after thorough analysis i.e, one should observe price patterns till it reaches the necklines and the prices seem to move up or down depending on the type of trade you want to take place. the volume should also be given importance. only after thorough analysis and making sure about these points the buying or selling should take place
a cup pattern can easily be noticed by a long period line chart while flags can be seen better through candle sticks of short period
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