Hello friends, I Am Avinash & welcome to my blog Tradeintra. blogspot. Com.
The purpose of writing this blog is to discuss the ideas,learn from your comments & hope improvement in trading on both the sides, thus making trader able to self analyze any stock & take decision to trade rather than to rely on anybody else to take trade.
Here I Am going to discuss the basic concepts related to stock market & share my thoughts about intrday & swing trading, hence the name 'new approach to intraday trading'
To understand the behaviour of stock price ,with time, different chart patterns are developed. The aim of these chart patterns is to analyze the past behaviour of stock price & to predict future stock price. This is called technical analysis.
Technical analysis assumes 'History Repeats'. As human emotions hope, fear, greed remains same chart repeats after a definite interval of time. The technical analanalysis helps trader when to enter in a trade & when to exit a trade(entry & exit).
There are different types of charts. Popular charts are as below.
1.Line chart - To draw a line chart only closing prices of a stock are taken.
2.Bar charts -To draw bar chart four values open,close,high & low are required.
The upper end of bar represents highest value, while lower end represents lowest value Of the stock on that day.
The small horizontal line left to vertical line is open price while small horizontal line to the right of vertical line represents close price of a particular stock on that day.
Among all chart patterns candlestick patterns are widely accepted & used for chart analysis.
To draw a candlestick four values are required, open, close, high, low over a particular time period.
You may draw candlestick of any period one minute, two minutes, 5miniutes, 1hour, 1day, a week, a month depending upon what type of trader you are, how much time you want to remain in the trade.
Here we are going to discuss day trading so I will concentrate on a day candlestick.
Open - The price of a particular stock at the time when market opens.
Close - The price of a particular stock at the time when market closes at the end Of The day.
During the market hours the value of a stock varies depending upon buying & selling (volume) of a stock, news, rumors, announcement by management, government economical strategies etc.
High - The highest price reached by a stock during that particular day.
Low - The lowest price attained by a stock during that particular day.
Candlestick consists of body & shadow(or tail).
There are two types of candlesticks white candlestick & black candlestick.
White candlestick -When closing price of stock is higher than the open price of stock, it is called white candlestick. Generally it is denoted by white or green colour.
It is also called bullish candle.
Black candlestick -when closing price of a stock is lower than open price then it is called black candlestick. It is generally denoted by black or red colour.
It is called bearish candle.
In the next article we will study 'support & resistance' &' Elliot wave'
The purpose of writing this blog is to discuss the ideas,learn from your comments & hope improvement in trading on both the sides, thus making trader able to self analyze any stock & take decision to trade rather than to rely on anybody else to take trade.
Here I Am going to discuss the basic concepts related to stock market & share my thoughts about intrday & swing trading, hence the name 'new approach to intraday trading'
To understand the behaviour of stock price ,with time, different chart patterns are developed. The aim of these chart patterns is to analyze the past behaviour of stock price & to predict future stock price. This is called technical analysis.
Technical analysis assumes 'History Repeats'. As human emotions hope, fear, greed remains same chart repeats after a definite interval of time. The technical analanalysis helps trader when to enter in a trade & when to exit a trade(entry & exit).
There are different types of charts. Popular charts are as below.
1.Line chart - To draw a line chart only closing prices of a stock are taken.
Chart connecting closing prices
Basic diagram of bar chart
The small horizontal line left to vertical line is open price while small horizontal line to the right of vertical line represents close price of a particular stock on that day.
Bar chart per day over a period
To draw a candlestick four values are required, open, close, high, low over a particular time period.
You may draw candlestick of any period one minute, two minutes, 5miniutes, 1hour, 1day, a week, a month depending upon what type of trader you are, how much time you want to remain in the trade.
Here we are going to discuss day trading so I will concentrate on a day candlestick.
Open - The price of a particular stock at the time when market opens.
Close - The price of a particular stock at the time when market closes at the end Of The day.
During the market hours the value of a stock varies depending upon buying & selling (volume) of a stock, news, rumors, announcement by management, government economical strategies etc.
High - The highest price reached by a stock during that particular day.
Low - The lowest price attained by a stock during that particular day.
Candlestick consists of body & shadow(or tail).
There are two types of candlesticks white candlestick & black candlestick.
White candlestick -When closing price of stock is higher than the open price of stock, it is called white candlestick. Generally it is denoted by white or green colour.
It is also called bullish candle.
White(green) candle,bullish candle
Black candlestick -when closing price of a stock is lower than open price then it is called black candlestick. It is generally denoted by black or red colour.
It is called bearish candle.
Black(red) candle,bearish candle
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