How to choose best Stocks Technically

9)  Bump and Run Reversal The second phase of the pattern is the bump phase, in which prices move up faster than the first phase. During this phase, the trend line becomes at least 50% faster than the lead-in trendline. Traders should validate the bump pattern by checking the maximum height of the bump in relation to the lead-in trendline. The distance from the highest point of the bump to the lead-in trendline should be twice (or more) the distance from the highest height to the lead-in line in the lead-in phase. The chart starts showing the right side of the collision once the prices reach their peak and start declining toward the trend line. The volume expands after the advance forms on the left side of the bump. The run phase begins when prices reach the lead-in trendline.  After crossing the trendline, sometimes the price reverts back to the trendline, which is now also a resistance level. Bump and Run Reversal Patterns can be used for all types of trading from...

 6)  Ascending Triangles The ascending triangle is a continuation pattern defined by an entry point, stop loss, and profit target. On a price chart, it appears as a horizontal support line connecting the highs to the lows from an upward trend line. Each ascending triangle has at least two highs and two lows. In comparison, a descending triangle has a horizontal lower line and a descending upper trend line. The above chart represents an ascending triangle. It consists of a horizontal resistance line drawn at smaller highs, with a rising trend line connecting minor lows, forming a triangular pattern.  Ascending triangles are continuation patterns because the price usually breaks out in the direction it was going before the pattern. Like other types of triangles, volume often shrinks during chart patterns. Investors usually enter when a price breakout occurs, keeping an eye on false breakouts. The positions they take depend on the direction of the breakout - buy in...

 There are many chart patterns in the stock market. But we can categorize it into two major types.   1) Continues Pattern A continuation pattern can be considered a pause during a prevailing trend. This is when the bulls  catch their breath during an uptrend  or when the bears  relax for a moment during a downtrend . While a price pattern is forming, there is no way to tell if the trend will continue or reverse. As such, careful attention must be placed on the trendlines used to draw the price pattern and whether the price breaks above or below the continuation zone. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed. If the price continues on its trend, the price pattern is known as a continuation pattern. Common continuation patterns include: Pennants, constructed using two converging trendlines Flags, drawn with two parallel trendlines Wedges, constructed with two trendlines that wou...

 16) Three Black Crows The Three Black Crow is a multiple candlestick patterns that forms after an uptrend that signals a bearish reversal. These candlesticks are made up of three bearish bodies that do not have long shadows and open within the actual body of the previous candle in the pattern. 17) Black Marubozu The Black Marubozu is a single candlestick pattern formed after an uptrend that signals a bearish reversal. This candlestick chart has a long bearish body with no upper or lower shadows, which indicates that the bears are building selling pressure and a bearish trend is likely in the market.  In this candle formation, buyers should be careful and close their buy position. 18) Three Inside Down The Three Inside Down is a multiple candlestick patterns formed after an uptrend indicating a bearish reversal. It consists of three candlesticks, the first is a long bullish candle, and the second is a short bearish candlestick that should be in the range ...

 6) Three Side Up The Three Inside Up is a multiple candlestick patterns formed after a downtrend indicating a bullish reversal. It consists of three candlesticks, the first one is a long bearish candle, and the second one is a short bullish candle that should be in the range of the first candlestick. The third candlestick should be a long bullish candlestick that confirms a bullish reversal. The first and second candlesticks should belong to the Bullish Harami candlestick pattern. Traders can take long positions after the completion of this candlestick pattern. 7) Boolish Harami Pattern A Bullish Harami is a multiple candlestick chart pattern formed after a downtrend indicating a Bullish Reversal. It consists of two candlestick charts, the first candlestick is a long bearish candle and the second is a short bullish candle that should be in the range of the first candlestick. The first bearish candle shows the continuation of the bearish trend and the second candl...

 1) Hammer Pattern: A hammer is a single candlestick pattern that forms at the end of a downtrend and signals a bullish reversal. The actual body of this candle is smaller and is positioned on the top with a lower shadow that should be more than twice that of the actual body. There is no upper shadow in this candlestick chart pattern. The psychology behind the formation of this candle is that the prices opened up, and the sellers pushed the prices down. Suddenly buyers came into the market and pushed the prices up and closed the trading session higher than the opening price. This resulted in the formation of a bullish pattern, indicating that buyers have returned to the market and the downtrend may be over. If a bullish candle is formed the next day, traders can enter a long position and place a stop-loss at the low of the hammer. 2) Piercing Pattern  A piercing pattern is a multiple candlestick chart pattern that forms after a downtrend that signals a bullish rev...

  How to read candlestick charts? Candlestick charts originated in Japan over 100 years ago when the West developed bar charts and point-and-figure charts. In the 1700s, a Japanese man known as Homma discovered that since there was a relationship between the price and the supply and demand of rice, markets were also strongly influenced by traders' sentiments.  A daily candlestick chart shows the open, high, low, and close prices of a security for the day. The wide or rectangular part of the candlestick is called the "real body" which represents the link between opening and closing prices.  This real body shows the price range between the open and close of that day's trade.  When the real body is filled, black or red, it means the close is lower than the open and is referred to as a bearish candle. This indicates that the price opened, the bears pushed the price down and closed below the opening price.  If the real body is empty, white, or green it means...