Thursday, 10 December 2015

Trading based on Candle Stick patterns

There are different approaches to trade in the Stock Market. Some traders follow their strategies based on the Technical analysis and other follows the strategies based on Risk Management. Risk management is a topic of classic research. There are a group of traders who are involved in trading using the Candlestick patterns. Candle Stick Patterns are the most efficient and effective tool of Stock trading. In the Candle Stick patterns the price movements are represented by the candles of various sizes and different colors. The candle sticks can be drawn with any period. The period of the Candlestick patterns is user dependent. The green candle represents a rise in the price levels and the red candle represent the fall in the price levels. The size of the candles is dependent on the magnitude of the price change. A complete candle shows the start price, the end price as well as the high and low of the specified period.
The candle stick patterns provide an insight about the sentiments among the traders. There are various standard patterns for the trend reversals. The doji signal for example is a signal for trend reversal. The doji Signal is represented by a plus sign. It is a potential chance of the trend reversal as it indicates that the buyers and sellers are in balance. Similar to the doji signal the engulfing patterns are also the characteristics of trend reversals. In the engulfing patterns a bearish candle overlaps a bullish one or a bullish candle overlaps a bearish one. The engulfing patterns are also the characteristics of trend reversals.

The above described Candle Stick analysis is used by the technical analysts to generate accurate stock market tips. Money Classic Research is one such reputed advisory firm. Also the advisory firm MoneyClassic Research is an advisory firm which is SEBI registered as well as ISO certified.

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