Initial Public Offers are usually issued by those companies seeking to raise capital or wanting to get access to funds in order to expand their operations.
When a company’s stock is listed in the stock exchange and available for the public to buy and sell stocks, at that point in time that company’s stock is considered to be available in the secondary market.
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.
Remember👇
Alphabetical labeling helps to differentiate between the degree or level of the wave. It speaks to the span of the basic pattern.
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.
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.
This is a very popular Intraday Strategy with good Accuracy. In this strategy, a Buy signal is generated when a Stock or Index has same value for Open and Low, while a Sell signal is generated when it has same value for Open & High @valuelevels
This is Tried and Tasted Strategy. Traders should follow 100% disciplined in executing those strategies with Risk and Money management Rules.
Traders can keep the Stop loss at 1% from Entry level or Previous Days High or Low levels.
Take ENTRY after 9.30 AM
Check Stocks where Open=High OR Open=Low (before 9.30 AM)