Price Patterns are the patterns formed in the chart over a specific period of time. Dow theory is base for price pattern.
price pattern show the early indication of market trend, the characteristics of trend, where dow theory fail to do so.
Demand and Supply can be identified using price patterns.
there are different types of price patterns
1. Double Top – Price Pattern – Bearish Trend
2. Double Bottom – price pattern – Bullish Trend
3. Head & Shoulder Pattern – Price Pattern – Bearish Trend – strong hands selling the stocks in long run
4. Inverted Head & Shoulder Pattern – Price Pattern – Bullish Trend – Strong hands buying the stocks in long run
5. Cup / Rounding Bottom pattern – price pattern – gradual buying of stocks by strong hands.
6. Flag Pattern – Price Pattern – Fight between buyers and sellers
7. Triangular Pattern – Price Pattern – when both buyers and sellers are powerful.