Trading in Stock market or in Forex market with technical
analysis will be like a road map for success. Candle stick will form with
prices of the stocks or price of currency pair . Four prices are required for forming of an candle, Open
price, closing price, High price and low price. Continuation of candles will
form a pattern and that patters will give an indication as how the price moves.
We have to recognize and differentiate the candlestick patterns based on
Reversal Patterns Continuation Patterns. Usually two or three Candles are
required to form a pattern even some patterns requires 4 to 5 candles. After formation
of pattern one has to decide to enter in to or exit from the market as per the
pattern. But after completion of confirmation candle. After completion of
pattern one has to wait for confirmation candle.
High Reliability Reversal Patterns
I.
Bullish
Reversal
1. Priceing Patterns:
2. Morning Star
3. Morning Doji Star
4. Bullish Kicker signal
5. Bullish three white soldiers
6. Bullish three inside up
7. Bullish 3 outside up
8. Bullish Abandoned baby Patterns
9. Bullish Concealing Baby Swallow
II.
Bearish
Riversal
1. Dark cloud cover
2. Evening star
3. Evening Doji star
4. Bearish Kicker Signal
5. Bearish 3 Black crowes
6. Bearish Two Crowes
7. Three Inside Down
8. Bearish Three outside Down
9. Bearish Abandoned Baby Pattern.
In addition
to this one have to use indicators or oscillators combination of one or more
signals will be more helpful for trading To effectively utilize technical
indicators, you must first understand that the most essential aspects of these
indicators are their parameters. This is because proper parameters offer you
better entry and exit points. We can consider the technical indicators are more
important than fundamental analysis
Some of
Technical indicators are below:
1. Support levels
2. Resistance levels
3. Moving Averages
4. Bollinger Bands
5. Linear Regression lines
6. Moving Average Convergence and Divergence
7. Volume Bars
8. Stochastic Oscillators
9. Relative Strength Index
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