Skip to main content

Posts

Showing posts from February, 2018

Difference between STOCKS and SHARES

The stock of a company is sold in units called shares . A share is a unit of ownership, in a company. If you buy a share of a company, you are buying a piece of the company. When you own more than one share in a company or several companies, these are called stocks, because "stock" generally refers to a portfolio of shares Stocks and shares are the same. The minor distinction between stocks and shares is usually overlooked. Learn the best Trading strategies from -  Trade Logical 

Bearish Engulfing and Piercing pattern - I

Bearish engulfing  How to recognize it?  There must be a proceeding uptrend  A shorter green candle followed by a long red candle  The longer red candle opens higher and closes lower than the shorter green candle, completely engulfing it.  What is the psychology behind?  The green candle implies the control of the bulls following a prolonged uptrend  In next session, the market opens about the high of the green candle, suggesting continuation of the bullish force  The bulls then lose momentum, the bears take charge then send the price down during the session and eventually manage to close below the low of the green candle  The bears have now fully overridden the Bulls  How do we trade it?  Look for the bearish engulfing at the top of an uptrend  Wait for the next candle to close below the law of the red candle to confirm the existence of bearish force  Open the short position upon confirmatio...

Bullish Piercing pattern - Multiple Candlestick Pattern

Bullish Engulfing and Piercing pattern - II Piercing bullish  How to recognize it?  There must be a proceeding downtrend  Red candle followed by a green candle  The green candle opens with a gap down and closes at 50% or above the real body of red candle  What is the psychology behind?  The red candle implies the control of the bears following a prolonged downtrend  In next session, the market opens below the low of the red candle, suggesting continuation of the bearish forces  The bears then lose momentum, the bulls conquer and lead the price up during the session, and eventually managed to cover 50% losses or more from the previous sessions  How do we trade it?  Look for the piercing at the bottom of a down Trend  Wait for the next candle to close above the high of the green candle to confirm the existence of bullish force  Open a long position upon confirmation  Place a stop loss below...

Bullish Engulfing Pattern - Multiple Candlestick Pattern

Welcome to bullish engulfing patterns - I                                           Bullish Engulfing (Bullish)                                                                                                                How to recognize it?      There must be a preceding downtrend      A short of red candle followed by a longer green candle      The green candles open lower and closes higher than the red candle completely engulfing it   What is the psychology behind?   The red candle implies the control of ...

Understanding Bearish Gravestone Doji and Shooting Star - Single Candlestick Patterns

Single Candlestick Patterns Bearish Candle Stick Patterns: Indicates the end of an uptrend and start of the downtrend. These candlesticks are very strong when they are formed near the resistance line . There are two types of Bearish candlestick patterns : 1. Gravestone Doji 2. Shooting Star The bearish hanging man is a single candlestick, and a top reversal pattern. A hanging man signals a market high. The hanging man is classified as a hanging man  only if is preceded by an uptrend . Since the hanging man is seen after a high, the bearish hanging man pattern signals selling pressure. ,           Gravestone Doji                                                            Shooting Star                               ...

Understanding Bullish Dragaon Fly Doji and Hammer Pattern - Single Candlestick Patterns

Bullish Candle Stick Patterns The Dragonfly Doji is a single candlestick pattern which helps traders in setting up directional trades. The bullish hammer is a significant candlestick pattern that occurs at the bottom of the trend. A hammer consists of a small real body at the upper end of the candlestick with a long lower shadow. The longer the lower shadow the more bullish the pattern. ‘ S hadow to real body ratio ’. The length of the lower shadow should be at least twice the length of the real body.            Dragonfly Doji                                                                                                Hammer                         ...

Understanding the glossary of Trading

Bears - Market participants who expect the market to decline and attempt to profit from it. Bearish - The expectation of market going down. Bulls - Market participants who expect the market to rise and attempt to profit from it. Bullish - The expectation of market going up. Downtrend - The tendency of price moving downward. Gap-down - The scenario of a stock that opens at a price that is below the price it closed at in the previous trading session. Gap-Up - The scenario of a stock that opens at a price that is above the price it closed at in the previous trading session. Long Position - Buying a stock with the expectation that it will rise in value. Resistance - The price level that sell force is strong to prevent prices from rising higher. Support - The price level that buy force is strong to prevent prices from falling further. Uptrend - The tendency of price moving upward. Stop Loss - An order to sell a financial asset at a specific price in order...

Introduction to Candle Sticks

Candlestick analysis is the base for Technical analysis. Candlestick charts are thought to have been developed in the 18th century by  Munehisa Homma , a  Japanese  rice trader of  financial instruments . They were introduced to the Western world by  Steve Nison  in his book,  Japanese Candlestick Charting Techniques . They are often used today in the stock analysis along with other analytical tools. Description on Candle sticks Candlesticks are usually composed of the body (black/white or green/red), and an upper and a lower shadow (wick). The area between the open and the close is called the  real body , price excursions above and below the real body are  shadows . The wick illustrates the highest and lowest traded prices of a security during the time interval represented. The body illustrates the opening and closing trades. A black (or red) candle represents a price action with a lower closing price than the prior candle's cl...

Trading Knowledge For Beginners - One stop for all the basics of Technical Analysis used in Trading!

Hey Trader 😊, Welcome to the InformaTive Channel. This Page is created mainly with the intent to provide knowledge on technical analysis. Technical analysis at first may seem very difficult!  but it's not.  Technical analysis may appear complicated on the surface, but it boils down to an analysis of  supply  and  demand  in the market to determine where the price  trend  is headed. Understanding the pattern's formed in candlestick chart and getting to know the western style of Technical analysis will help you make an informed decision and reap profits. Technical Analysis will help you know when to enter and when to exit from the stock market. Unlike Fundamental Analysis, Technical analysis can be used for  Day trading Swing Trading Positional Trading Scalping Trading Crypto-Currencies So, Having knowledge of technical analysis will help you in a lot of ways and...