The best way to identify the target price is to identify the support and resistance points. The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling.
Only when a trader knows how to “read candlesticks“, he will be able to understand what the patterns tell him about the underlying market dynamics, the behavior of traders, and whether buyers or sellers are in control.
Bullish candlestick patterns may form after a market downtrend, and signal a reversal of price movement. They are an indicator for traders to consider opening a long position to profit from any upward trajectory.
A candlestick is a way of displaying information about an asset’s price movement. Candlestick charts are one of the most popular components of technical analysis, enabling traders to interpret price information quickly and from just a few price bars.
Stock charts, like all other charts, have two axis—the vertical axis and the horizontal axis. The horizontal axis represents the historical time periods for which a technical chart has been constructed. The vertical axis displays the stock price or the trading volume corresponding to each period.
Investing in the share market can be tricky especially if one is a beginner. However, the process is very streamlined now that all the tools to invest in a share market are available electronically. Curious about how to invest in share market?