CA Bigyan Kumar Mishra

Rounding bottoms occur at the market bottom while rounding tops develop at market top. These chart patterns indicate a potential reversal point on a price chart. Rounding top is also referred to as the “inverse saucer” pattern. It appears as an inverted ‘U’ shape. On the other hand, the rounding bottom appears as a clear “U” shape on the price chart. It is referred to as … [Read more...] about What is rounding top and bottom price pattern in stock market

If you're new to the stock market, terms like "gap up" and "gap down" might seem confusing at first. These terms refer to sudden price changes in stocks that happen between one trading day and the next, often creating an empty space or "gap" on stock charts. Understanding what these gaps mean, how they happen, and how traders use them can help you navigate the stock market more … [Read more...] about Understanding Gap Up and Gap Down in the Stock Market: A Comprehensive Guide for Beginners

Breakout means the stock quickly turns upward from a sideways move making a new high. In a downtrend, if the stock moves below a support level after trading sideways, then it's called continuation breakout to the downside. Breakouts create excellent trading opportunities for traders. Breakout traders live by the motto, “No price is too high to buy and no price is too low … [Read more...] about What is breakouts and breakdowns in stock trading

A channel forms when the price action of a stock or asset is controlled by 2 parallel, sloping lines. To know how effective the channel lines are, you must make sure that it has tested each of these lines at least twice. Please note, we are not talking about television channels. These are trend channels drawn on price charts in order to understand price action, sometimes … [Read more...] about Parallel uptrend and downtrend price channels in trading

Margin trading refers to the process of borrowing money from your broker in order to leverage your available capital to trade in stocks.  Remember, stocks and options can be traded in either cash or margin account, short sales of stocks can only be traded in a margin account. To start margin trading you need to have a margin account with a brokerage firm. This … [Read more...] about Understanding margin trading in stock market

You may have heard the saying “the trend is your friend”. The old saying “The trend is your friend” is a constant reminder that you always want to be on the more dominant side of price action. To understand what it is, you have to first understand, what is the trend? By recognizing whether the bulls or bears are the more dominant group, you can be conscious of the trend … [Read more...] about The trend is your friend-Uptrend, Downtrend and Sideways in stock market

In this article, we will let you know about the sideways market and the difference between congestion, consolidation and trading in a range. When the market is sideways, the stock may make one of three basic patterns: trading in a range, congestion and consolidation. Each of such patterns tells you a different story. Many times technical analysts refer to a sideways … [Read more...] about Sideways market-Difference between congestion, consolidation and trading in a range

In the market, you will find that stock prices move in one of three directions: up, down, and sideways. No other movements are possible. The opposite of an uptrend is known as downtrend, when a security is making a series of lower highs and lower lows. Multiple lower lows and lower highs makes a downtrend. Instead of lower lows and lower highs, many technical analysts … [Read more...] about What is a downtrend and how to trade a falling Market

If you closely monitor the stock charts, you will find that stock prices move in one of three directions: up, down, and sideways. No other movements are possible. In an uptrend, the stock moves higher and higher.  In other words, an uptrend occurs when the stock price is making a series of higher highs and higher lows, which you can see on a chart. To remain in … [Read more...] about What is an uptrend and how to trade a rising market

Chart patterns are carefully analysed by technical analysts to place a trade in the stock market. These chart patterns apply to all time frames irrespective of the type of trade you do.  This means, you can apply principles of price chart patterns to any time frame, from one-minute candlesticks all the way to daily, weekly or monthly candlestick charts. Before … [Read more...] about 3 classic continuation chart patterns for stock traders and investors