Price patterns like Double top Double bottom Triangle Flag are discussed with their bearish and bullish trends

  • : In Technical analysis price patterns are identified using lines or curves. It is a trendline which configures the price movement
  • : Dow theory is the basic for price patterns. In Dow theory trends are based on demand and supply. In price patterns the trend is before handed detected and provide early signs of demand and supply
  • : Double top is a consecutive top with two highs with a slight decline between two tops and the duration should be min of 20 days. The bearish condition can be determined from previous low point
  • : It is same as Double top except for having consecutive tops it will have two bottoms with slight highs in between them. The bullish trend is determined from the previous high point
  • : Head and shoulders pattern is one reliable pattern that help the user to confirm that an upcoming trend is coming to an end.
  • : An inverted head and shoulders pattern is comprised of three component parts .After long bearish trends the price falls to a trough and subsequently rises to form a peak
  • : Cup pattern is a pattern with lows and highs. It is powerful with many such patterns and has low volume in rounding pattern
  • : A steeper pole with rectangular sideways is known as flag pattern. A flag pattern takes min 4 to 7 days to form.
  • : Entry price should be at the end of the breakout, Exit price should be above the previous higher top and Stop loss should be the previous low bottom
  • : 5 Consecutive wave patterns are needed to form triangle patterns. The triangle pattern area has to have minimum 1.5 months .
  • : Easy example of Head and shoulder patterns
1 Comment
  1. Naresh 4 months ago

    Hi,
    The formation of Head and Shoulder has been a continuous decrease in volume. That means the volume will be higher in the left shoulder and eventually it decreases with the formation of the head and right shoulder. The main process of the head and shoulder pattern is accumulation and distribution. The duration to form each should be a minimum of 1 month.

    Watch the below video…..I hope this will help you
    https://www.youtube.com/watch?v=dCuxpo7gp4U

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