#double tops

Price Patterns – Profitable trading

Price Patterns are formed in charts due to frequent change in demand and supply which provides a high probability profitable trade set up. Entry and exit points can be well defined which gives a clear idea for risk reward ratio. Popular price patterns – Double Tops, Flags, triangle pattern, head and Shoulder. Price patterns make the price movement predictable in near future and also indicate the…

The markets discount everything, news, results, rumors and all future events. • Primary trend is interrupted by a secondary reaction which lasts on average of three weeks to a few months. • A primary trend will pass through three phases, according to the Dow Theory. In a bull market, these are the accumulation phase, the public participation (or big move) phase and the excess phase. In a bear…

Price Patterns and its Characteristics – Technical Analysis using Charts and Price Patterns

There are several ways to analyse the stock price movements, in Technical Analysis price patterns are also powerful technical patterns one can depend upon. We have many price patterns, Double Tops, Double Bottoms, Head and Shoulder, Inverted Head and Shoulder, Cup or rounding bottom pattern, Flag and inverted Flat patter, Triangle pattern etc. Professional traders use them for their trades using…

Charecteristics of various price Patterns

Importance of studying price pattern helps in predicting price movement on its re-occurrence under the same conditions. Double tops & bottoms, Triple tops and bottoms, Head & Shoulder pattern, Flag pattern, cup pattern, triangle shape pattern, etc. are some of the price pattern. Each pattern has its own defined criteria expected movement under certain conditions. Study of these pattern helps…

The price patterns in technical analysis are the indications or signals of trends in fall or rise in the prices of stocks. It is generally shown with the help of trend lines or curves on the graph. They are broadly divided into two categories i.e a continuation pattern and the reversal pattern.Under the continuation pattern we have the CUP pattern, the flag pattern and the triangle pattern.Under…

Trading success with Price Patterns

Price patterns identify trading opportunities with Entry, Exit and Stop loss well defined. Double tops and bottoms, provide trading opportunities for Short and Long positions respectively. H & S, provides Short position, reflecting a stronger hand liquidating in short time. Flag provides a Long position Triangle can provides both Short or Long position depending on the break out direction.

There are various price patterns but however in order to understand them the understanding of Dow theory is very important. Price need not be perfectly same there can be quite a difference in the shapes.