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| PDF Name | Top 5 Price Action Pattern |
|---|---|
| No. of Pages | 6 |
| PDF Size | 1.68 MB |
| Language | English |
| Tags | Stock Market |
| PDF Category | Stock Market |
| Source / Credits | Social Media |
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Also Read: All Candlestick Patterns PDF Download
Top 5 Price Action Patterns
1. False Breakout
The false breakout price action pattern is very popular and very easy to figure out in any type of chart pattern. When in any stock price chart, the candles break two or more resistances and show a breakout, but after a few minutes, the candles come just below the resistance line; this is known as a false breakout. Also, you can see a perfect example of a false breakout with the UPL stock candles illustration in the top 5 chat pattern PDF.
2. Breakout with Build-Up
The breakout with build-up price action is also very popular, but mostly in equity (where people trade in stocks). In this pattern, just before the breakout, the stock consolidates for a long period (2 to 3 weeks). This happens because during the consolidation, the bulls want the stock price to go up, but on the other hand, the bears want the stock price to go down, and this is the main reason for the long consolidation. But after the fight between bulls and bears, the stock price goes up with a large high candle, and bulls make a big profit. Also, you can see an image illustration on a stock for better understanding.
3. Pullbacks
This price action pattern is very similar to the False Breakout, but the difference is that in this price action pattern, the price of the stock goes up again after breaking the resistance (very similar to the retest pattern). Here the trader gets a perfect entry into the market and makes a big profit. This pattern is generally seen in futures and options markets (Nifty, Bank Nifty, Sensex, FinNifty, etc.).
4. Breakout from Patterns
The breakout from patterns is a quite popular price action pattern because in this pattern, the failure of very popular chart patterns like double bottom, wedge, cup and handle, etc. And when this failure happens, in the market, the stock price goes sharply down. Also, this pattern is known as the most profitable and reliable for traders. Because these things happen very rarely as compared to the other price action patterns. This price action can be seen in both the equity and futures & options markets.
5. Breakout and Then Re-Test
This price action is similar to the pullbacks, but the difference is in this pattern: the candles come again to their resistance level after showing the breakout or breakdown. And then do a continuous rally in favour of the respected re-test direction. You can see the four patterns in the given PDF.