Trend analysis, candlestick patterns
It’s supply and demand. That’s it.
We call these green and red tickers candlesticks. You don’t have to know all the types but just look at the overall pattern and the size of the body. Do you see how some candles have really long wicks on both ends and some have a short wick? The ones with lots of meat on them are the good ones. Think of it as you are buying meat in the market and you want the meaty ones. They are important candles.
Now there are patterns that indicate an uptrend and a downtrend. If the candles make a higher peak than last time, it’s an uptrend. If the candles make a lower peak than the last, it’s a downtrend.
There are timeframes you can filter for free on tradingview.com
You want to look at the weekly and monthly charts to see the big picture, in which money is made. There are many indicators you can use but just look with your eyes and make a line through the patterns.
Look for a significant rise or drop. A big candle body or a group of them going in the same direction.
Where do the candles shoot out of repeatedly? What’s the price that the candles keep bouncing off of? That’s the demand zone. This is where you buy. It’s when a good stock is up for sale.
Don’t be the person who keeps on buying at the peak and watch their money run down. Be patient.
Now, which tip do the candles touch repeatedly and slide downhill? This is the supply zone. This is the time to sell.
Place limit orders or make stock alarms on yahoo finance ahead of time. Make a spreadsheet of stock names, buy and sell prices. Stick with the overall plan.
Don’t expect to win all the time. However, don’t expect to improve your skills without continuous practice and observation.
This is a skill that develops differently for everyone but starts with the basics.
“buy low, sell high.”