Tuesday, 12 January 2016

Candle Stick patterns (A Better Insight on Trading Charts)-Money Classic Research

Different people follow different tactics to trade in the StockMarket. Some of them trade on the basis of technical analysis and other on the basis of advice from various advisory firms. Some traders trade on the basis of News and other on the basis of Candle Stick pattern Analysis. Out of the above mentioned tactics the trading on the basis of Candle Stick patterns is an effective and promising way.
In Candle Stick patterns the price movements are represented by the candles of different colors and different sizes. The candle Stick patterns are drawn for a particular time frame or period. The candles in the candle Stick patterns represent the open price, close price, minimum price and maximum price in a period. If the close price is higher than the opening price it is shown by a green candle. On the other hand if the opening price is higher than the close price it is represented by a red candle. The size of the candle represents the difference between the open and the close price. The more is the size of the candle the bigger is the price movement.
The candle stick patterns of various types give different indications about the market conditions. For example there are patterns like doji, engulfing etc which are potential chances of trend reversals. The doji is represented by a small plus sign and indicates that the bulls and bears are in balance and the trend can reverse. Similarly engulfing patterns are of types bullish engulfing and bearish engulfing. The engulfing represents the potential chances of trend reversals.

The above mentioned tactics are used by the technical analysts in reputed advisory firms like Money Classic Research. The advisory firms provide accurate stock market tips and also accurate tips in form of equity tips. For intraday they provide Intraday Trading Tips with proper Stop Loss levels.

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