Stock Trading Chart Patterns: Basics of Candlestick Chart in Technical Analysis

By Tim Saunders

Learn to make money in the stock market, even if you've never traded.The stock market is the greatest opportunity machine ever created.Are you ready to get your piece of it?This book will teach you everything you need to know to start making money in today's stock market.Don't gamble with your hard-earned money.If you are going

• Language: English
• Publisher: Tim Saunders
• Release date: Jul 23, 2023
• ISBN: 9781806216758

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Stock Trading Chart Patterns

Basics of Candlestick Chart in Technical Analysis

© Copyright 2022 - Al rights reserved.

The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher.

Under no circumstances wil any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book. Either directly or indirectly. You are responsible for your own choices, actions, and results.

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This book is copyright protected. This book is only for personal use. You cannot amend, distribute, sel , use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

Disclaimer Notice:

Please note the information contained within this document is for educational and entertainment purposes only. Al effort has been executed to present accurate, up to date, and reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources.

Please consult a licensed professional before attempting any techniques outlined in this book. By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, which are incurred as a result of the use of the information contained within this document, including, but not limited to,

— errors, omissions, or inaccuracies

TABLE OF CONTENTS

Legal Notice:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Disclaimer Notice:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Chapter 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Breaking Down the Lingo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Introduction to Stock Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Chapter 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

Candlestick Basics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Basics of Candlestick Chart in Technical Analysis. . . . . . . . . . . . . . . . . 50

Chapter 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87

Bul ish and Bearish Patterns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Chapter 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

Stock Trading Chart Patterns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

C hapter 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116

Breaking Down the Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Chapter 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152

Order Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152

Perfecting the Order Types - Stop-Limit Orders. . . . . . . . . . . . . . . . . 152

Chapter 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172

Moving Averages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172

Chapter 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198

The Keltner Channel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

Chapter 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235

Standard Deviation for Stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235

Chapter 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248

Market Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274

12 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277

Introduction

In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money.

-Ray Dalio.

If you've spent any time in the trading or

investment world, you've probably heard the phrase,

"Never trade with money you can't afford to lose.

" Because of the inherent danger in the type of investment you intend to make, this is a popular phrase and cautious words to heed. You may have also heard about traders losing al of their money, but the truth is that you are most likely not being given the complete picture.

Many people make a living and do extremely wel by trading stocks. They have spent time studying the market and developing winning tactics that have provided them with excel ent results. Do these people have losses? Of course they do, but

their key to success is that the gains they make vastly outnumber those losses.

You might be asking how they manage to accomplish it with al the risks involved . They have learned to respect the market and the risks that come with trading. You're reading this book because you want to be a successful stock trader but may not be sure which approach you should use.

You've become interested in technical analysis and chart patterns and you'd like to learn more, particularly about how to use them to make more profitable deals. Let me just add that you are already on the right track. However, for the few who are stil unconvinced, there are three basic categories of security market analysis: fundamental, quantitative, and technical analysis.

Fundamental Analysis Fundamental

analysis focuses on the elements that wil affect a company's stock price in the future. Management method, financial statements, earnings, goods, and industry are only a few examples. To determine if a

company's inherent value is overvalued or under-priced, a study of its intrinsic value is performed.

Decisions and plans are based on analyzed statistics and publicly available information about the organization. Unlike technical analysis, which is based on historical data, fundamental analysis is based on both historical and current data, and it is more useful for long-term investments.

Quantitative Analysis Quantitative analysis focuses on using mathematics and statistics to assess the price or value of financial assets such as stocks, options, and other financial assets.

Quantitative

analysis,

sometimes

known

as

quants, creates algorithms and computational methods using a variety of information, including historical investment and stock market data.

Investors can