Candlestick #charts patterns is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement
A moving average is a technical indicator that investors and traders use to determine the trend direction of a stock or to determine its support and resistance levels.
It is a trend-following or lagging indicator because it is based on past prices.
📍Types of Moving Average
👉 Simple Moving Average (SMA): SMA is a technical indicator calculated by adding the most recent data points in a set and dividing the total by the number of time periods.
Stock chart patterns often signal transitions between rising and falling trends.
These patterns can be as simple as trendlines and as complex as double head-and-shoulders formations.
Since price patterns are identified using a series of lines or curves, it is helpful to understand trendlines and know how to draw them. Trendlines help technical analysts spot support and resistance areas on a price chart.
A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past.
Opening range breakout trading is an interesting concept. Several traders have asked us how to take advantage of the opening range breakout strategy and if it is a good option. So, we decided it requires a separate discussion.
What Is Opening Price And Why It Is Important?
To understand the opening range breakout strategy, we must clear our understanding of the opening price of the day.
Often the opening sets the mood for trading for the day – uptrend or downtrend.
Key Understanding
🔖 The beginning hour of the trading day is the most active and dynamic period. The opening hours sets the sentiment of the market
🔖 You can make the most money during the opening hour, but it is also volatile
In 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.
History:
Some of the earliest technical trading analysis was used to track prices of rice in the 18th century. Much of the credit for candlestick charting goes to Munehisa Homma (1724–1803), a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka
Formation of the candlestick:
Candlesticks are graphical representations of price movements for a given period of time. They are commonly formed by the opening, high, low, and closing prices of a financial instrument.