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Basics of Technical Analysis. Line Chart. A line chart shows the line connecting the closing prices. Bar Chart.
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Line Chart A line chart shows the line connecting the closing prices.
Bar Chart The bar chart is composed of a high (highest price during a session), a low (lowest price during a session), open and close. We draw a vertical line using a high price and low price and set a horizontal dot from to the right of the vertical line representing the closing price and from left representing the opening price.
Support Support is a term used in technical analysis indicating a specific price level at which the price will have inability to cross below.
Resistance Resistance is a term used in technical analysis indicating a specific price level at which the price will have inability to cross above.
Double Top/M-Top Double top indicates that the market is falling twice at a resistance and is reversing then sharply. A break of the support would indicate further fall in the price indicating a bearish trend.
Double Bottom/ W- Top Double Bottom indicates that the market is falling twice at a support and is reversing then sharply. A break of the resistance would indicate further rise in the price indicating a bullish trend.
Candle Sticks The candle stick patterns have originated from Japan. The candlestick patterns provide a better visual perspective to predict the future market action than bars. There are basically two types of candle stick i.e. • Bull Candle • Bear Candle
Candle Sticks Patterns • Doji • Dragonfly Doji • Gravestone Doji • Spinning Top • Bearish Engulfing Lines • Bullish Engulfing Lines • Falling Three Methods • Rising Three Methods • Three Black Crows • Three White Soldiers • Tweezer Top and Tweezer Bottom • Hammer and Inverted Hammer • Shooting Star
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