Stock investment needs to know when to buy and when to sell. Chart Mode: Understanding Stock Price Movements


There is such a message to an edge and give a chance to profit.

The price of a stock is like a bouncing ball. Sometimes it's up and sometimes it's down. Its movement depends on the hardness or strength of the ground hit, when it has a huge force, so that the sitting position rebounded higher. With the development of the stock market, many stock analysts found that such a point is indeed repeated, so there is a new understanding of the technical analysis known as the line. Technical analysts believe that stock price movements can be predicted based on patterns that can be found in the price chart.

Patterns represent the direction of the stock price. The bearish pattern suggests that stock prices will fall sooner or later, and stock investors must start selling their holdings before prices fall below their purchase costs. Simultaneously the bullish pattern indicates that the price of the stock rises quickly, so investors start buying and holding as much as possible so when it reaches a high price they can profit from the stock they buy at a lower price.

Whether you use a candlestick chart, bar chart or simple closing price chart, you can chart mode. These models do not accurately and accurately answer everyone's questions if the stock is to be bought or sold, but mostly to guide one, at least to know the possible price action of the stock over the next few days based on historical price movements.

Patterns can also be viewed as reversal or continue

Inversion patterns indicate actions that are contrary to what has happened in the stock price. If the stock has been in a downtrend for some time, the reversal pattern will indicate the expected upside, so that investors expect this reversal to buy more shares to take advantage of the lower price of the stock.

On the other hand, it shows that share prices are expected to rise further. With this expectation, investors will buy more stocks, and stocks seem to continue to rise.

Chart mode as a guide for making buy or sell decisions. Must always be carefully studied and understood, because the model is not 100% accurate. As they say, "trading your own risk"