In the
share market investment or buying shares for trading will be based on two
analysis one is Fundamental analysis and another one is Technical analysis for
fundamental analysis we need to go through the company data and its financials
form time to time. And in case of Technical Analysis one should know about much
more information as to looking on charts and its formations by candlesticks. One
has to identify the patterns forming in chart based on price movements of the
stock over a period of time. Here are some candle stick patterns which we have
to identify in price movements for Buy signal, it mean up on confirmation of
this pattern we can buy the stock for investment or for trading. This pattern
can be formed in any of the time frames in the chart weather it may be minutes,
hours, days, months. Usually 15 minutes chart is used in intraday trading and
Daily time frame for investment purpose.
The candle
stick patterns for Buy signal of share of a Company:
1. Bullish Unique three river bottom
2. Bullish break away
3. Bullish Three inside up
4. Bullish three outside up
5. Bullish abandoned baby pattern
6. Bullish Concealing baby swallow pattern
7. Bullish Homing Pigeon Pattern
8. Bullish Ladder bottom
9. Bullish Matching low
10. Bullish stick sandwich pattern
11. Bullish three star in the south
12. Bullish Tri Star pattern
The explanation for all these Pattern formations will be clearly discussed in Technical Analysis head one by one
1. Companies which pays Dividend and the market price of the share is greater than the face value
2. The profits of the company are on incremental basis and pays dividend equal to or more than bank interest rates.
3. The Price of the share is all time high in bullish trend and now the share is available at low price.
4. Companies of some sectors are steady or in good position even in crisis or bearish trend, if such shares are available for low prices.
5. Always buy the shares in low prices.
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