Friday, February 28, 2020

Candlestick Chart

Candlestick Chart


© Chart photo copyright by CHARTIST blog


It is similar to bar chart as far as price data is concerned as candlestick charts also included all four important price data like Open, High, Low, Close. Candlestick charts can be used in any time frame from 1 minute’s to5 minutes to 15 minutes to 30 minutes to 1 hour to several hours to daily, weekly monthly and yearly.


Same like in bar chart, here also in candlestick chart, and each candle represent the particular one period, suppose you selected the candlestick chart in 30 minutes time frame than that each candlestick will be shown the prices of Open, High, Low and Close of that particular 30 minutes.
But there are some more details in each candlestick formation: it is called Open Candle and Closed Candle

Open Candle : Open candle means if the closing price is higher than opening price of that particular candle than it is called “Open Candle” and it will be shown in Blue color by default.


Close Candle : If the price is closed lower than the opening price of that particular candle than it is called “Closed Candle” and it will be shown in Red color by default.
Each Candlestick made of two components, one is Body mean the thick solid vertical bar just like a candle and another component is the shadow of the candlestick.


Candle Body :  It looks like thick and solid bar just like a candle and it consist the open and close price, means the top of the solid thick body in each candle represent the opening price of that particular time frame and in a same way the bottom of the solid thick body of each candle represents the closing price.


Candle Shadow : Most of the time each candle have the extra vertical thin line which is coming out from top & as well as from bottom of the solid thick body of candle, these vertical thin lines called shadow (but I personally call the top line is flame of the candle and bottom line same as shadow, I think it makes more relevant to candle, than both are shadow, I think most of you will agree on my logic) anyways back to the learning,  the thin vertical line or shadow (or flame in my language) on upper part of the solid thick body is represents the high price for that particular time frame candle and in same way the thin line or shadow below the bottom of the solid thick body of candle represent the low price of that particular time frame of the candlestick.

Candle stick chart is one of the best for technical analysis in comparisons to above two i.e. Line chart & Bar chart. As there are many candle patterns which gives the clear view to the analyst which way is the movement going to happen.


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C H A R T I S T

Friday, February 21, 2020

Bar Chart

BAR  CHART

© Chart photo copyright by CHARTIST blog

In bar chart bar are shown vertical and every bar represent price activity of that one period. Bar chart can be formed as short as in 1 minute time frame to as long as many years of historical charts. If bar chart is used on 5 minutes time frame than each vertical bar shown on the chart is represent one bar for 5 minutes period, means it shows the open high low and closing prices of that 5 minutes in one single vertical bar itself. Same way if the bar chart selected for the daily chart than one single bar will represent the whole day activity and days open, high, low and closing price will show in one single bar itself.


How to Read the prices in vertical Bar:

1)   Opening Price : Left hand of the vertical bar
2)   High Price : Top of the Vertical bar 
3)   Low Price : Bottom of the vertical bar
4)   Closing Price : Right hand of the vertical bar

Please check the above chart picture to understand easily.

It is very important for technical analysis that chart showing the prices must have all four prices in it i.e. Open ; High ; Low ; Close.  All these price data gives much more depth for analyzing the movement by plotting the data into the time frame.

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Friday, February 14, 2020

Line Chart

Line Chart

© Chart photo copyright by CHARTIST blog
 

This chart is the very basic chart type of all. In this chart there only one line is shown moving up and down in one flow means it connect from last point to next point or price data by line.


Usually line chart is used on only one price and that is for day’s closing price for daily chart analysis. But the problem with this type of chart is that you can’t see the whole day activity in that line chart , means you don’t able to see the open, high and low prices on the chart, you can only see the one line connecting from the last point and i.e. closing prices only.

Line chart type benefit is only that it gives you the idea that how the price traveled in one single view you can see how the stock performed historically.

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Friday, February 7, 2020

Share Market Beginners Guide



 Share Market Beginners Guide

© by CHARTIST blog


If you are new to Share Market and what to know about it ?

Are you interested to know how to get started ?


Here below you will find some important steps to start with and make investment in the stock market.

Important steps to follow to invest in the stock market :--
  1)      Before starting understand your own financial situation and decide your stop loss levels, that till how much percentage loss you can bear if in case the market prices goes against your position.

  2)      Know and understand your investments need, goal and time frame.

  3)      Understand the market and its dynamics.

  4)      Read about different strategies.

  5)      Decide and stick to the strategy you are following.

  6)      Have faith in your own decisions and study.

  7)      Keep vigilant on global news front.

  8)      Always read news related to your holding sectors and shares in particular.

  9)      Never mix trading and investing.

  10)   Most investor ignores small day to day news on particular companies stock or market. As investors always having the medium to long term horizon, so these shorter term developments doesn’t affect there investments.

  
11)   Traders who trade for intraday to few days positional trade, only they used to act upon day to day news and developments.

  12)   Always track your portfolio.

  13)   Keep track on company’s fundamentals and results.

  14)   Always consider technical analysis and charts reading before entering and exiting from the market or any particular company’s shares.

  15)   Follow some fundamental experts for their opinions but always analyse yourself over and above there opinions as you only knows your financial situation, more than anyone else.

  16)    Never try to chase the stock price, if you do this 10 times than I assure you that you will create holes in your pocket at least 7-8 times out of 10 times.

  17)   Buy a good fundamental story which you thinks is about to unfold in near future.

  18)   Try to find out which company is a possible turnaround story, by using looking at the company results of at least last 3 years.

  19)   Buy a stock when it is oversold condition and spend a quite some time in oversold levels, this way there are chances you can make good returns on your invested money, but need to take caution also as you must need to know and keep track on news flows also as why the stock falls so much and why it is keeping low for so many weeks and months. After understanding all that take a call and act upon your study.

  
20)   Thumb rule never follow the crowd.

  21)   Thumb rule never follow tips and news flows from unreliable sources.

  22)   Thumb rule never use Loan amount for investing and trading into stock market.

  23)   Thumb rule always fix your own target in percentage form for each of your investment.

  24)   Thumb rule never put all your eggs into one basket, means never invest all of your money into one company stock, always distribute and balance your money into different stocks from different sector category, this way you are safe guarding your invested money.

  25)   Thumb rule never ever get emotionally attached to any particular company stocks.

  26)   Thumb rule always learn from mistakes and don’t shy to admit your own mistakes you have done in stock market investing, accept the fact.

  27)   Most important rule: Remember all above points and write it down on a paper and pin it just next to your computer screen on your desk, so it will always remind and restrict you from going wrong.


Please Note: Besides the above mentioned points, there are many more important points and steps one needs to follow, I advise you to follow this post and blog so you will get updates on relevant topics, and do keep visiting this blog from time to time to get interesting knowledge from basics levels to the levels of experts. I hope and I am sure after reading all my old as well as future coming posts, you will feel the difference and also become an EXPERT - SUCCESSFUL - HAPPY – INVESTOR – TRADER

I welcome comments & feedback's & queries from every reader / user of the blog.
If you are interested to be part of this blog by way of writing some articles or want to be admin and or want to contribute in another way than please feel free to connect with me without any hesitation.

Happy Investing !!!





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C H A R T I S T