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.
Chart patterns are the basis of technical analysis and require a trader to know exactly what they are looking at, as well as what they are looking for. 📊 👀
A continuation pattern can be considered a pause during a prevailing trend. This is when the bulls catch their breath during an uptrend or when the bears relax for a moment during a downtrend.
Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon.
Learn more about Best chart patterns 👇
by @valuelevels
Head and shoulders
Double top
Double bottom
Rounding bottom
Cup and handle
Wedges
Pennant or flags
Ascending triangle
Descending triangle
Symmetrical triangle
Liquidity is the most important intraday trading tip while choosing the right stocks to trade during the day. Liquid stocks have huge trading volumes whereby larger quantities can be purchased and sold without significantly affecting the price. Don’t forget to check...
liquidity at various price levels. You will find some stocks that are highly liquid at a lower price level, but the volume drops drastically after reaching a certain price zone. Variability of liquidity at different price levels will help you buy these stocks at the right time.
Choose Two or Three Liquid Shares"
Intraday trading involves squaring open positions before the end of the trading session. This is why it is recommended to choose two or three large-cap shares that are highly liquid.
Determine Entry and Target Prices:
Before placing the buy order, you must determine your entry-level and target price. It is common for a person’s psychology to change after purchasing the shares. As a result, you may sell even if the price sees a nominal increase.
PRICING: Flat fees, no hidden charges
₹0-Commissions On investing in MF and IPOs
₹0- AMC
₹20-Brokerage On Eq, F&O, commodity & currency
₹0-Account Opening
Candlestick #charts patterns is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement