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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