Price patterns are recurring formations on a stock's price chart—identified through technical analysis—that signal the likely future direction of price movement based on historical precedent. Common continuation patterns (suggesting the trend will persist) include flags, pennants, and cup-and-handle formations, while reversal patterns (signalling a change in trend) include head and shoulders, double tops, and double bottoms. Traders on platforms like Ventura use price patterns in conjunction with volume analysis and momentum indicators to identify high-probability entry and exit points in both equities and derivatives markets.
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