Thursday, July 23, 2009

How to identify a bullish bar

Let us use some common sense ideas to identify what a bullish bar may look like.

When the market closes above the previous close the message is of strength.

When the market closes above the open of the day, again a message of strength comes in.

When the market makes an intraday low, recovers from the low to close higher, thus making a long lower shadow, the pattern would be considered bullish because a test of low probably took place.

A pattern that is not bullish is a candle with long upper shadows.

The best way to enter the market after a bullish candle is to wait for some sign of strength. When the market trades above the high of the bullish candle such a sign is available.


Vimal K Rao said...

Hi Sudarsanji..

There is a fundamental reason why
most people can't follow a trading system
with discipline.

Terry Burnham has explained it nicely in his book
"Mean Markets And Lizard Brains"

Vimal K Rao

Krishna said...

Sir i have used your words as golden rule and made good gains..

"When the trend is up buy on every dips and when the trend is down short on every rallies"

ashwani dhir said...

sir,you are genieous.if one goes 100 per according to you will be able to succesed in his day to day trading.I apply the same rules while trading in gold silver and crude and get good results,so thank you for your support.

Ashwani dhir

LIC Agent Noida said...

yes, Thats right but we need to idetify trend.... i think all
short term, long term, and intermediate.