Dow theory is important whereas price patters give indications of the nature in the market. hence following different patterns helps the traders to predict the certain movement in the market which allows them to take calculated risk during trading

  • : price patterns used to analyse the market. It is more predictable than Dow theory. there are various price patterns are available
  • : Price Patterns are derived from the Dow theory. gives more predictable patterns for the traders to make informed decision
  • : Two double tops with equivalent shape and it indicates bearish Trend. duration minimum one month and the second top must have good volume and which indicates the bearish trend.
  • : Two double bottoms with equivalent shape and it indicates bullish Trend. duration minimum one month and the second bottom must have good volume and which indicates the bullish trend.
  • : Head curve is accompanied by two adjacent shoulder curve. It is generally called accumulation pattern. Minimum should be three months to even analyse the pattern. Left shoulder should have high volume and right shoulder shall have low volume then we can take the bearish trend.
  • : Exactly opposite to the head and shoulder pattern.
  • : Its a accumulation pattern and generally takes longer duration to form. cup shaped pattern should be visible. lacklustre volume is found and long position can be created based on this trend. Stocks can be held in lower position.
  • : It indicates the surge in the momentum of the stock. It is visible in the candlestick chart. Spot the steeper trend and it should have 75 -80 degree steeper pole and then it should continue a positive momentum. Rectangular price movement is expected and minimum of 3-4 days.
  • : entry price should be the breakout from the positive trend
  • : consolidation pattern and generally takes 1 and half months to form. volume should be high when it breaks out.
  • : Entry price, Exit Price and Stop loss for flag pattern
  • : short position can be taken only during intraday? clarify
1 Comment
  1. Naresh 4 months ago

    Hi,
    In response to your question

    Your Question 1:: Entry price, Exit Price and Stop loss for flag pattern
    This is an appropriate trade plan for bullish flag pattern:-
    Your entry should be just above the breakouts of the consolidation range
    Set a stop loss just below the flag formation
    Your target should be based on the height of the flag

    Your Question 2 :: short position can be taken only during intraday?
    Yes of course, you can take a short position on an intraday basis in the spot market but you cannot be carried the position overnight. However, the short position in the futures market can be carried forward overnight or up to expiry day.

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