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Thursday, 21 January 2016

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Automation of Bullish Engulfing Candle Stick Strategy-Money Classic Research

Automated trading is a new concept and is a very effective way of Stocktrading. In automated trading a computer is used to place the trades. The buy and sell calls are placed automatically when certain rules are met. The strategy with the entry and exit rules should be programmed with the help of a programming platform.
The rules for the execution of the buy and sell calls should be expressed in terms of various variables and then can be programmed accordingly in the platform. In this article we are taking an example of bullish engulfing pattern in Candle Sticks.
The candle stick pattern is a tool for judging the price sentiments. The price movements in a given period are represented by the candles of different sizes and colors. The size of the candles represents the extent of the price movements and color represents a bullish or bearish candle.
The engulfing pattern is a pattern of trend reversal from bullish to bearish and vice versa. The engulfing patterns are of two types namely the bullish engulfing and bearish engulfing. In the bullish engulfing a small bearish candle is engulfed by a long bullish candle and in case of bearish engulfing a small bullish candle is engulfed by a long bearish candle.
The strategy can be programmed based on the rules like the close of next candle should be higher or lower than the previous candles. Also the entry or exit can be defined based on the previous close or open.

The above strategies are extensively used by the technical analysts in the advisory firms to generate Stock market tips. MoneyClassic Research is a reputed advisory firm which generates equity tips and Intraday trading tips. The advisory firms are also helping with automated trading platforms in form of technological support as well as support on various strategies.  

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