Price patterns - NSEData.com
Price pattern is formed on chart when prices are plotted.
Published on: Mar 4, 2016
Transcripts - Price patterns - NSEData.com
When data is plotted, there is usually a pattern which can be seen
repeatedly over period.These types of patterns are called Price pattern.
Price pattern is formed on chart when prices are plotted. Price pattern
play important role in stock and commodity markets trading as well as
plays huge role in technical analysis. Price patterns can be used as
reversal or continuation signal.
Head and shoulder
Double top and Double bottom
Head and shoulder formation occurs when price trend is in process of
reversal from bullish or bearish trend and is recognized as reversal
Two types of Head and Shoulder formation are there, Head and Shoulder
Top, Head and Shoulder Bottom.
Head and ShouldersTop formation consists of a left shoulder, a head, and a
right shoulder and a line drawn as the neckline.
Head and Shoulder Bottom is simply the inverse of a Head and Shoulders
Top and often indicates a change in the trend. Head and shoulder
formation is upside down in which volume pattern is different from Head
DoubleTop and Double Bottom are reversal chart patterns that can be
observed in the technical analysis of financial trading markets of stocks,
commodities, currencies, and other assets.
The DoubleTop is price formation at the end of a bullish market. It occurs
as two consecutive peaks of approximately the same chart of a market.The
two peaks are separated by a minimum in price, a neck line.The formation
is completed when price falls below the neck line.
Double Bottom is same as the double top, except for the inverse
relationship in price.The pattern is formed by two price minima separated
by local peak defining the neck line.The formation is complete when prices
rise above neck line.
The flag pattern is generated by two parallel lines.These lines can be flat or
pointed in the opposite direction of the primary market trend.
Here the pole line indicates the primary trend in market.The pattern is
seen as the market potentially just taking a “breather” after a big move
before continuing its primary trend.
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