Basic Trading Charting

There are a couple of different bars and candlestick charts. Since my knowledge is in candlestick charting, I will focus on how candlestick charting helps me in my trades. As some would refer to them as focus on high and low opening and closing prices at a certain point in the chart, candidates or bars would refer to them. If you focus on daily charting than each bar/candlesticks exemplify a specific day of trading activity. Some people like to watch their stocks and set the trading at two minutes; however, some do 15 minutes.

The essential part to watch for candlestick and bars would be the price between volume on a trade. Additionally, it helps pinpoint areas of profit, reversals, and stop limits. The goal is always to determine the probability of profit, where to enter a trade, exit a transaction, and, most importantly, get in the habit of developing a strategy or method that works for you and your specific candlestick choices.

What does Bearish mean in stock market terminology? To fall on a downtrend or to start red with the going price higher than the closing price.

What does Bullish mean in stock market terminology? Usually green with an uptrend, the opening price is lower than the closing price.

Bullish patterns have different pattern names, for instance, abandoned baby, hammer, dark cloud, to name a few. When watching bullish patterns, technician analysis measures momentum, oscillators, or volume, which all confirm buying in these patterns.

The goal is to buy at a low, low, and sell at a high, high. As we learn more about patterns, you will understand more about technical analysis and what to look for before opening a trade and looking for when closing a transaction.

It can study volume and trends with short term signals. Previously, we touched on learning graphics and patterns to discover signals. In the forex market world, technician analysis is crucial because you focus on short price movements; that is what this is all about. Once you can understand the candlesticks and read the bars, you will know how history will repeat itself in the stock market and find it before it happens.

The above graphic explains the different patterns that represent a more bullish pattern. These are just a couple of bullish patterns. In a later post, we will discuss both bullish and bearish patterns more of the other ways. These patterns are on a downward trend, which in these cases buying on a low, low with technical analysis strategy for the trade to move to a high, high profit.

That is the significant part of understanding your patterns, which again we will get into further and, most importantly, watching what your candlesticks/bars are doing. P&F(point and figure) charts are the easiest to read and prepare your daily trades, which we will discuss later. What are your trading strategies? Do you plan out your trades before making any moves? As a learner of trading, what some tips that you can give to your new fellow traders?

**DISCLAIMER*** All strategies, tips, and advice are all my own opinion. I am not a licensed financial advisor. Please reach out to a licensed financial advisor or accountant before making trades. You are responsible for your stock market portfolio. All the above advice is from my own personal trading through trial and error.

Reference:

Using Bullish Candlestick Patterns To Buy Stocks

https://www.investopedia.com/articles/active-trading/062315/using-bullish-candlestick-patterns-buy-stocks.asp

Technical Analysis

https://www.investopedia.com/terms/t/technicalanalysis.asp

Point and Figure Charting: A Basic Introduction

https://www.investopedia.com/articles/technical/03/081303.asp