Hello you very wonderful and intelligent people that make up this forum. I truly hope everything is going well for you and you are having a lovely weekend.
I kindly wondered please on various stocks, you have downtrends and then after usually a bottom is reached, the stock increases. There is market cycles at work and also the volume of buyers and sellers. I kindly wondered what are reliable and consistent candlesticks patterns to show a reversal and an uptrend please? For instance what candlestick pattern reliably over and over again will indicate a stock is in an uptrend please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.
Sending you lots of good wishes and i truly hope you continue to have a wonderful life and achieve massive success in the stock market. Thank you ever so much for any support you can give. With my every best wishes.
A stock represents a share in the ownership of a company, including a claim on the company’s earnings and assets. As such, stockholders are partial owners of the company. When the value of the business rises or falls, so does the value of the stock.
The markets are forward-looking. No historical share value can predict or forecast a company’s profitability.
Trading from charts is based more on probability than evidence. At any given moment, price will probably next do the same thing as it last did. If it has been in an uptrend, the most probable next thing it will do is rise. No candlestick formation or chart pattern will reliably distinguish between two uptrends on two charts and tell you which is more likely to rise, or which is more likely to rise further.
I suspect my view on this is unpopular, as many traders are keen to discover what price is not likely to do next, which is how they end up being short in uptrends and losing money time and time again.
It depends what you mean by “reliably” and “over and over again.”
None is completely reliable; they’re all probabilistic.
We’d all like there to be a really reliable one, but if there were, we’d all be winners in the stock-market, and there wouldn’t be any losers whose losses would pay the profits of the winners, would there?
That part’s easy, as far as it goes: a steady progression of price-bars with higher highs and higher lows reliably indicates that any financial instrument is right now in an uptrend; a steady progression of price-bars with lower highs and lower lows reliably indicates that any financial instrument is now in a downtrend. What is doesn’t tell you is whether that up/downtrend will continue; nor for how long, if it does. All we know is that a current trend within a specified timeframe is, at any point, slightly more likely to continue than not - but of course everyone else in the market knows that, too.
I suspect you’re looking for a simple candle-pattern that reliably predicts price-direction, that nobody else knows about; I’m afraid you won’t find one (wouldn’t it be great, if you could, though?! ).
In other words, that part’s easy, as far as it goes, but “as far as it goes” isn’t far enough to have any realistic value for you.
Reliable and consistent candlestick patterns that indicate a potential reversal include the Hammer and Hanging Man for bullish reversals, and the Shooting Star and Bearish Engulfing patterns for bearish reversals. The Morning Star (bullish) and Evening Star (bearish) are also strong indicators of trend reversals.
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