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 (1724โ1803), a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka #stocks
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.
Here, wave A is the first price wave that is against the trend of the entire market. B wave is a corrective wave for wave A. Wave C shows the final price move to complete the counter trend price move.
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Alphabetical labeling helps to differentiate between the degree or level of the wave. It speaks to the span of the basic pattern.
As the name suggests, Intraday Trading is the process of buying and selling stocks on the same day. Basically, you buy stocks on daily basis, you look for a reasonable price to sell it and then earn your profit.
Daily analysis and research is necessary for Intraday Trading. The movement of the marketโs momentum must be reflected in the strategy used by a trader.
It is advisable to look for liquid shares for Intraday Trading. As the trader needs to square-off their position at the end of the day, it is better to go for large cap shares.
Most Essential Stock Chart Patterns
With @Stocktwit_IN
THREAD ๐งต 1. Ascending triangle 2. Descending triangle 3. Symmetrical triangle 4. Pennant 5. Flag 6. Wedge 7. Double bottom 8. Double top 9. Head and shoulders 10. Rounding top or bottom 11. Cup and handle
Cup and handle:
The cup and handle is a well-known continuation stock chart pattern that signals a bullish market trend. The cup appears similar to a rounding bottom chart pattern, and the handle is similar to a wedge pattern
Rounding top/bottom:
The rounded top and bottom are reversal patterns designed to catch the end of a trend and signal a potential reversal point on a price chart.