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Monday, 14 December 2015

Using MA and Candlestick Patterns to Predict Price movements


Different people have different approaches towards the Stock Market. The stock market is always associated with risks and there are high chances that the trader may incur loss in the trades. There are many different strategies used by the Traders to trade in the Stock Market. Many traders trade on the basis of stock market tips and Intraday trading Tips from the advisory firms. Many other traders use the Technical analysis to trade in the Stock Market. Technical analysis is a complete field in which the past price movement is used to track and predict the future price movement. The candle stick analysis is a inherent part of the technical analysis. In the candle stick analysis the price movements are represented by the candles of various size and different colors. The green candles represent the price rise and the red candle represent the price fall. The different size of the candles represents the magnitude of change in the prices. The different types of candlestick patterns represent the different market sentiments among the people.
The candle stick patterns like doji represent the potential chance of the reversal in the trend. Similarly there are engulfing patterns which represent the trend change. For example the bullish engulfing represent the start of bullish trend and the bearish engulfing represent the bearish trend start.
There are strategies in which the Candle Stick analysis is used in conjunction with the other technical indicators like Moving averages and RSI. The use of moving average with candle stick patterns is a common strategy. The use of two of them helps to confirm the buy or the sell signal and provide a high success rate.
The advisory firms like Money Classic Research are extensively using the above mentioned techniques. They use the indicators stated above to provide stock market tips. The advisory firm Money Classic Research is a SEBI registered organization and also ISO certified. The advisory service provides free services to new clients.

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