Know How To Read Stock Market Chart's

Know How To Read Stock Market Chart

Basically,  To know how to read stock market chart. We have to know that, Stock Market is based upon two important factor's. One of them is "Buyer" & Other one is "Seller". Now, We will understand about working of Buyer & Seller.

Buyer's will pull market Up Side while Seller's will push market Down Side. Hence, Market will always moves Up & Down. Stock Market will never go one side for long time, There will must be a correction in either one side.

 

Candle Stick Pattern

When, There is a fall in market or in a Stock, Buyer's will get active & Purchase that particular Stock. When price of stock will increase, It give's profit. At the higher point when Buyer suppose prices are at good position or will not able to go up. Buyer's will book profit by selling the position.

This upside movement of the stock is shown in Green colored candle.

When, Price of the stock is at higher position. Then, There will be Correction or Fall in that stock. Now, Seller will sell that stock at higher price & book profit at lower price & book profit. 

"A Smart Trader can book profit in "Rising Market" & in "Falling Market" also."

This downside movement of the stock is shown in Red colored candle.

Know What is A Candle in Stock Market Chart

New Trader's must read this carefully, Stock market chart is made up of Up & Down Patter's. This Pattern is made up of Candle's. Most of the Trader's uses only "Candle Stick pattern' to read stock market chart.

You have seen Green & Red colored pattern in chart. These Green & Red Candle show's Up & Down movement of Stock Market accordingly.

Candle Stick

When Stock Market is in positive trend. A Green Colour Candle will form's & Market trend is supposed to be Positive or Bullish & On Red Candle, It will be supposed that stock market is in Negative Trend & Bearish.

Candle is devided in Upper Shadow, Body part & Lower Shadow. Here, Upper point of  Candle said as High (It show's highest price of the Stock) & Lower point of Candle said as Low (It show's Lowest price of the Stock).

Upper body point called as Close (Where price was closed  at the end of time frame i.e. 1M/5M/15M likewise) & Lower body point of Candle called as Open (Where price was Opened  at the start of time frame i.e. 1M/5M/15M likewise) in a Green Candle.

In Red Candle, Open & Close point's are opposite in direction as compare to Positive Candle. Mean's, In Red Candle, Upper body point is called as Open (Where price was Opened  at the start of time frame i.e. 1M/5M/15M likewise) & Lower body point is called as Close (Where price was closed  at the end of time frame i.e. 1M/5M/15M likewise).

Friends, Important thing remember to know in Stock Market Chart is that, No one Chart will show one side direction continuously. Trading view is a Charting Platform which offer's so many tool's & indicator's to study of Stock Market Chart.
Know How To Read Stock Market Chart's Know How To Read Stock Market Chart's Reviewed by Nikhilesh Deshpande on 16:21 Rating: 5

No comments:

Powered by Blogger.