Candlestick Patterns- Part -1

Even though the structure of candlesticks is different from that of bar charts, it is easy to combine candlesticks with the technical chart analysis. By focusing on the relationship between open and close prices, candlesticks show how market forces change during market hours. This often indicates the short-term momentum in different products or markets. 


Candlestick charts are based on the same market data as regular bar charts but present that data in a different way. The components of candlestick charts are the opening price level, the closing price level, the high price, and the low price of any data compression rate, be it weekly, daily or intraday data.


I've found one interesting video which is very interesting at the basic level.

I will try to include more insights in Candlestick pattern.




Cheers
Chirag CM

Reliance..A Fight to cross 200 DMA

Reliance is trading at 820 which is also its 200 DMA. Generally 200 DMA is considered as long term entry and exit level. 

"The 200-day moving average is perhaps the most popular. Because of its length, this is clearly a long-term moving average. If price is above the 200-day moving average, chartists would consider it as a bullish sign and vice versa."

Though reliance has crossed its 200 DMA in early February but was unsuccessful to sustain it. Again the time has come for Reliance to show its metal. Good move can be expected above 820.  

Raymond:

Raymond can be a good buy at the current levels as it has given a much awaited breakout this time. The stock was trying to breach this level since Dec. '10. If it sustains above 405-07 then once can expect a good move.

Have a happy trading.

Cheers 

Chirag CM