Tuesday, 22 August 2017

Understand Candlestick Patterns For Successful Nifty Futures Trading

Nifty Futures Trading

Nifty futures have a very important place in the Indian derivatives market. The nifty futures are the most widely traded futures instrument which makes it the highly liquid contract in the derivative markets. Nifty futures are one of the top 10 index futures contracts to be traded in the world. When traders get comfortable with the trading then they surely would be active traders. For this trader need to understand the terminologies of trading the nifty futures.

Traders need to have knowledge of fundamental and technical tools of trading. Fundamentals of any security can be acquired easily while technical tools are numerous and hard to understand and implement. There are various technical tools which can be used in nifty futures and candlestick pattern is one of them. A candlestick pattern shows the price movements graphically on a candlestick chart.

This candlestick chart helps us to predict a particular market movement. Candlestick patterns are graphical representations of price movements for a given time period. Financial instrument’s opening, high, low and closing prices from them.  When the opening price is above the closing price, red or black candlestick is shown and the closing price is above the opening price, a green or a hollow candlestick is drawn. The filled or hollow portion of the candle called the body.

The lines below and above are called shadows, wicks and tails represent the low and high price ranges within a specified time period. The recognized patterns are 42 that are split into simple and complex patterns.  Some simple patterns are Big Black Candle, Big White Candle, Black Body, Doji, Hammer, Long Lower Shadow, Long Upper Shadow, White Body, Shaven Bottom, Shaven Head and many more and some complex patterns are Bearish Harami, Bullish Harami, Dark Cloud Cover, Engulfing Bearish Line, Engulfing Bullish, On Neckline, Tweezer Bottoms, Tweezer Tops, Piercing Line, Rising Window and many more. 

If you also want to learn the chart patterns and their implementation in nifty futures trading then you should take help from experts like Money Classic Investment Advisers to get authentic recommendations for successful trade in nifty futures. We provide recommendations on nifty futures after analyzing chart patterns and other technical tools so that you can make your desired return. 

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