How To Read Candlesticks chart? | Top 6 Candlestick patterns

How To Read Candlesticks | Top 6 Candlestick patterns

How to make money trading with candlestick charts in India.

How To Read Candlesticks chart:-Candlesticks have grown in popularity considerably over the last decade. And a bit and originally a guy by the name of Steve Nison introduced them to the western world. Whilst the scope of candlestick charting is extremely wide. And varied we are going to concentrate on what does a solid candlestick means when looking at the charts.

The first thing you’ll note about candlesticks is that you can have open and solid candles and you usually have different color candlesticks too, namely red and green. How To Read Candlesticks chart

What are Candlestick Charts And How To Read Candlesticks chart

In the Eighteen century in japan, Munehisa Homma was a rice trader who originated the candlestick chart. One day he realized that there is a link between the price of rice and the supply of demand, while the sentiments of traders are mainly responsible for the price movements.

Candles show a view of the size of price fluctuations. These charts are used to identify trade patterns and for near-term price directions.

The 6 candlestick information and How To Read Candlesticks chart is given below.

Open Candlestick

An open candlestick simply means that the closing price for the day closed higher than where it opened, resulting in a rise in the share price between the open and the close.

Solid candlestick

A solid candlestick means that the closing price for the day closed lower than where it opened, resulting in a fall in the share price between the open and close.

Red candlestick

A red candlestick usually refers to a down day relative to the previous trading day. For example, the previous day’s close was $25 and today it closes at $24 resulting in a red candle.

Green candlestick

A green candlestick usually refers to a positive day relative to the previous trading day. For example, the stock you are trading might have closed yesterday at $30 and today it closed at $31 resulting in a green candle.

Open red candlestick

An open red candlestick may be new to most people as their charting program may not have the functionality or depth to show these candles. Open red candlestick simply means the closing price today is lower than the close of yesterday but the closing price today is higher than the opening of the day. 

Solid green candlestick

A solid green candlestick shows us that the closing price today is higher than the closing price of yesterday. But the closing price today is lower than the opening price of the day. So as you can see, candlesticks can paint a very impressive and graphical picture. And once you get used to them you’ll be able to see some advanced patterns to profit from.

What is delivery Percentage?

The delivery percentage refers to people who have bought shares to hold for a day or more. Now everyone knows that a share you buy can be sold in minutes or hours. Also, if the stock sells anytime during the day, it is called day trade or intraday. Stocks/shares purchased on the same day and sold on the same day are not considered in delivery percentage.

So what exactly is a delivery percentage? This is the biggest question. Delivery Percentage is stocks held by people who do not use stocks for intraday but are held by people as long-term investments. The delivery percentage refers to the position of the stock held by those people in percentage. Investors who make large investments never do this day-trading / intraday. Shares held for delivery provide good returns to the investor in the later period. Therefore, investors place more importance on intra-day delivery.

How to use delivery percentage candlesticks in stocks?

If you also want to know the delivery percentage of that stock and how to use it for intraday. To get the delivery percentage data, visit the official website of NSE. You can download the delivery percentage data by clicking on the EOD option. When you notice that the price of stock continues to rise and a sudden purchase increases, a bullish candle is formed.

After a while, you feel like a bearish candle is forming. At such times the price of that stock can go up and you can invest in that stock seeing a good opportunity. This stock is reversing from support. And you can shop around that part because most likely smart buyers are smart hands and you should join smart hands or big players in this trading setup, as well as there are 3 more possible stages, we will discuss all 4 situations below and what you should do in each situation.

1. Delivery percentage Increases And Price Increases:-

As discussed above this means that smart hands are accumulating shares and you are accumulating shares to them yourself, you should not side with the sellers in this situation. You should always take advantage of such a bullish trend.

2. Delivery Percentage Increases But Price Decreases:-

This is an interesting situation because even though the price is falling, the delivery percentage is increasing, which means that investors are slowly stockpiling shares at a lower level, they would have expected a lower level and the stock starts to rise as stocks slowly start to rise. This is often seen on the technical chart when a stock approaches a support area as the support area almost shrinks. But the delivery percentage starts to increase. This shows that investors and traders are beginning to support it.

3. Delivery Percentage Decreases and Price Increases:-

If the price starts to rise but the delivery percentage decreases or stabilizes, it means that no big players are involved in this and this uplift is a bull trap so avoid buying in this situation under any circumstances, this kind of bullish trend is quick. Or then fails.* Distribution Percentage Decreases And Price Decreases: –

This shows that investors have no interest in the stock and the stock is falling free and will probably continue to fall for some more time, never buy in this situation.

How To Read Candlesticks chart from this article. And what is the delivery percentage? You will know how to use Delivery Percentage in Interday.

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