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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