Basic Indicator Signals : Trend Lines

Trend lines are probably the most common form of technical analysis in trading. They are probably one of the most underutilized ones as well.

If drawn correctly, they can be as accurate as any other method. Unfortunately, most traders don’t draw them correctly or try to make the line fit the market instead of the other way around.

In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas (valleys). In a downtrend, the trend line is drawn along the top of easily identifiable resistance areas (peaks).

How do you draw trend lines?

Candlesticks - Defined

The candlestick techniques we use today originated in the style of technical charting used by the Japanese for over 100 years before the West developed the bar and point-and-figure analysis systems. In the 1700s, a Japanese man named Homma, a trader in the futures market, discovered that, although there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of traders. He understood that when emotions played into the equation, a vast difference between the value and the price of rice occurred. This difference between the value and the price is as applicable to stocks today as it was to rice in Japan centuries ago. The principles established by Homma are the basis for the candlestick chart analysis, which is used to measure market emotions surrounding a stock.

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Doji

A single candlestick that indicates indecision -

(1) The opening price and the closing price are almost the same. This is depicted by the horizontal line.

(2) There is an upper tail/shadow and lower tail/shadow This is depicted by the vertical line.

(3) Most meaningful when it is displayed as part of a candlestick pattern.

Basic Lesson 1: Stock Market - Philippine Stock Exchange (PSE)

So what is a stock market?

- Aba e di palengke ng stock lol. This is where company shares are traded like in any market wherein there is a buyer and there is a seller.

A message to PSE Stock Market Newbie

 Hi PSE Stock Market Newbie!

                Since the stock market is bearish and I am just watching it to calm down & consolidate, let’s just reminisce our past in stock market.

Newbie Stage

                I have been in the stock market for more than two years and maybe I am still a newbie. Newbie in stock market may either think that stock market is very hard to learn as you might lose all your money; and or very easy to learn which could give you the opportunity to infinitely double your money. My experience will attest that in reality, both of these initial opinions are actually true LOL.

                First, stock market is very hard to master and learn as it needs a lot of passion, dedication, self-motivation, experience, patience, understanding, time, prayers and most importantly GUTS but it is not impossible to master it. Stock market knowledge will not come to you. You have to chase for it all around the world. And yes, stock market is very hard also as you will not only study the fundamentals of the company, the industry it belongs to, the countries it operates but you need also to include the impact of global market. The world is getting smaller due to more efficient international trade. So equipped yourself before entering this merciless world of stock market! Now this is PSE stock market Newbie GETS!