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Help with a price pattern question


esperanza

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Re: Help with a price pattern question

 

I think all price pattern is price action, but not all price action is a pattern. Price action is generally the feeling of bearish, bullish or sideways. For example testing a resistance or support is a price action, but is not a pattern. It is harder to talk about price action, as it is usually complicated to write it in words and if sy did it finally it became a pattern in the past. I hope this helped.

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Re: Help with a price pattern question

 

Price action can be an individual Price Bar say A Doji,menas indecision in Japanese Candlestick,Or a Hammer which is a individual price bar in Japanese Candlestick.Where as Price patterns means a collection of or atleast 2-3 price bars say 1-2-3,Flags,Shoulder head shoulder ,Triangle etc which are a collection of more price bars

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Re: Help with a price pattern question

 

Price action and price pattern are both different things. When a buyer & a seller agrees at a certain price level, a trade takes place. So every trade is a price action as it involves two different actions (i.e. buying and selling). Sometimes demand is so strong (whatever may be the reason - be it fundamental, insider news or anything else) that it pushes the prices to the higher level as people are willing to pay more prices. Similarly, sometimes supply was so strong that it pushes the prices to lower level. Sometimes, both buyer & seller are both confused but still don't want to let a trade miss as they think clarity will prevail after some time but in their favor. Again at each trade, a high level human psychology (sentiment) is involved. So after sometime, such type of psychology takes a definitive shape which is reflected in a series of trade i.e. price action. Such shapes are known as price patterns. Sometimes one has read those price patterns and gives some name like head & shoulder, flags, cup n handle etc. & sometimes one can't read those price patterns. So price action may not lead to a price pattern but a price pattern always emerges out of price action.

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