Daily Archives: February 23, 2015

Market fluctuation recognized through double bottom chart

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Double bottom chart is known world wide as a charting pattern used in technical analysis. This charting pattern describes the drop of a price, where first bottom should be 10%-20% and the second bottom will range within 3%-4 %percent of the previous pattern. In trade, double top and bottoms are one of the difficult price patterns to create. Few pointers that should be kept in mind while placing trade signals based on such formation. In such formations, precise borders are important as proper boarder formation will allow planning in advance and helps in decision making.

This chart provides clear picture when market gets set but it get really late to take advantage from it. As we all know and agree that markets are tending to move constantly so it is important to learn these pattern for better understanding of market changes. It has been seen that when a trend starts, market advances tend to rise with it and investors gets really interested in buying and selling as everyone wants to earn profit. Sometimes market reaches to such peak that not many buyers left in the market. After sometimes prices starts to drop again and at this point buying again starts in the market.

When such things start in market then a rally kind of thing starts where the second high is formed higher than the first high. Trend in business is all about knowing market and its position. Factually when the market reaches the top, it indicates that market is about to start falling and at this point uptrend start falling towards downtrend. When the market reaches its bottom then it indicates that market will start climbing again and the downtrend will convert into uptrend. Double bottom chart based on easy logic but analyzing this chart pattern is not simple as it sounds.

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Include Candlestick chart patterns with basic trading plan

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Every trader is using chart and graphs to analyze profit and loss along with market statics. Candlestick chart patterns are common analysis tool that is used by most of the share marketers. A candlestick pattern is used by day trading and swing trading to read chart patterns quickly and efficiently. This chart pattern is way better and straightforward than a bar chart. Skilled traders love candlesticks to analyze market position because they can read this chart type much quicker. People, who have worked on this chart, also take help from different kind of technical analysis widely known as candlestick reading.


Creating an analysis on candlestick chart is very difficult but one can easily utilize this chart pattern in everyday trading technique. Most of the professional traders use this chart pattern as supplement to an already complete trading plan. This chart pattern is one of the tools used by trade analysis to make constant profits. This chart pattern provides future growth before they actually happen. The graphs shown here should help trader to understand market and analyze future growth that helps traders in decision making process. When it comes to investigation of market and demand/supply chain then candlesticks pattern becomes important tool.


It has been seen that traders usually use candlestick for knowing the market trend and further they incorporate Candlestick chart patterns o be confident about market analysis. Day trader utilizes this chart pattern for very simple reason as this will enable them to read and understand more data in less time. Trader must prepare trading plan in such manner that it may use and allow candlestick patterns and other chart formations for better result. According to a research when straight technical analysis mixed with candlestick reading then it provides better result along with consistent profits. For every trader understanding the candlestick chart patterns is important to earn profit.