Candle stick pattern
Candlestick
Patterns in Stock Trading
Candlestick patterns are used by traders to analyze
price movements in financial markets, particularly in the stock market.
History of Candlestick Charting๐
Candlestick charting originated in Japan in the 18th century, developed by Munehisa Homma, a rice trader in Ojima, Japan. This charting technique was later
introduced to the Western world in the late 20th century by Steve Nison, who popularized the method.
Basic Candlestick๐ธ
A
candlestick chart consists of "candles," where each candle represents
a specific time period (like 1 minute, 15 minute, 1 hour, 1 day). The body of
the candle shows the opening and closing prices, and the wicks (or shadows)
show the highest and lowest prices during that period.
Common Candlestick Patterns๐ฅ
Bullish Engulfing: Indicates a potential price rise.
Bearish Engulfing: Indicates a potential price drop.
Doji: Signals indecision in the market.
Hammer: Can indicate a potential price reversal after a down.
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