What Is Support And Resistance?

What Is Support And Resistance? – A ball hits the floor and bounces. Toss it up, and it’ll drop after hitting the ceiling. Support and resistance are like a floor and a ceiling, with prices sandwiched between them. Understanding support and resistance is essential for understanding price trends. Rating their strength helps you decide whether the trend is likely to punch through or to reverse. What Is Support? Support is a price level where buying is strong enough to interrupt or reverse a downtrend. When a downtrend hits support, it…

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What Is Bar Chart?

What Is Bar Chart?

What Is Bar Chart? – Chart patterns reflect the sum of buying and selling, greed and fear among investors and traders. Many charts in this book are daily, with each bar representing one trading day, but the rules for understanding weekly, daily, or intraday charts are remarkably similar. Remember this key principle: “Each price is a momentary consensus of value of all market participants expressed in action.” Based on it, each price bar provides several important pieces of information about the tug-of-war between bulls and bears (Figure 1). The opening…

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Candlesticks Pattern?

What Are Candlesticks?

Candlesticks Pattern? – Acc To Wikipedia In financial technical analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern. Bullish  Long Candle It is a bullish candle which indicates that the bulls either after a short gap are back in game or their hold on a particular stock has further strengthened. Similar…

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How To Draw Trendlines?

How To Draw Trendline?

How To Draw Trendlines? – To draw a quality trend line, you will need to find at least 2 minimum swing points, and simply connect them with each other. The levels must be clear, don’t try to force a trend line. Don’t use smaller time frame to draw trend lines, use always the 4H and the daily time frames to find obvious trend lines. We will try to focus right now on how to draw them in a trending markets, our purpose is to identify the beginning of impulsive moves…

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How To Trade Trending Markets?

How To Trade Trending Markets?

How To Trade Trending Markets? – If you can identify a trending market, it will be easy for you to trade it, if it is a bullish market, you will look for a buying opportunity, because you have to trade with the trend, and if the market is bearish, you have to look for a selling opportunity. The Market Structure One of the most important skill that you need as a trader is the ability to read the market structure, it is a critical skill that will allow you to…

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Hammer And Hanging Man Lines

What Is Hammer?

Hammer And Hanging Man Lines – candlesticks with long lower shadows and small real bodies. The real bodies are near th.e top of the daily range. The variety of candlestick lines shown in the exhibit are fascinating in that either line can be bullish or bearish depending on where they appear in a trend. Hammer And Hanging Man Lines If either of these lines emerges during a downtrend it is a signal that the downtrend should end. In such a scenario, this line is labeled a hammer, as in “the…

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Descending Triangle Pattern

Decending Triangle Pattern

Descending Triangle Pattern – The descending triangle is generally considered to be a bearish pattern that indicates distribution and is usually found during down trends (see Figure 1 and Figure 2). Figure 1 Descending triangle in a down trend — bearish. Figure 2 Descending triangle showing apex, pattern height and breakout. It is the bearish counterpart of an ascending triangle. A descending triangle is formed when the price makes lower highs but the lows keep occurring at the same price level due to support. The odds favor a downside breakout…

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Ascending Triangle Pattern?

Ascending Triangle Pattern? – An ascending triangle occurs when there are higher lows, but the highs recure at the same price level due to resistance. Ascending triangles indicate an upward bias, with a flat top and a series of higher lows Ascending triangles are generally considered bullish and are most reliable when found during an up trend. The top part of the triangle appears flat, while the bottom part of the triangle has an upward slant. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation. There…

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How To Read Stock Charts?

How To Read Charts

How To Read Stock Charts? – If you’re going to actively trade stocks, then you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks still often use technical analysis of stock price movement to determine specific buy, or entry, and sell, or exit, points. Stock charts are freely available on websites such as Tradingview and Zerodha and stock brokerages always make stock charts available for their clients. In short, you shouldn’t have any trouble finding stock charts to examine. How To Read…

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Types Of Chart Pattern Head And Shoulders

Head And Shoulder

Types Of Chart Pattern Head And Shoulders – Technical analysis is based on the premise that history repeats itself. It follows, then, that if you can analyze the recurrence of identifiable patterns and formations that have preceded or accompanied important market movements in the past, you can get important clues about the future. Some chart patterns are more reliable than others for price forecasting — but none is infallible. Some patterns are very reliable, while others do not end in the price target one would expect. Our effort here is…

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