Three rules to identify the importance of a Trendline

In the previous blogpost, I wrote about how to identify changes in trends using trendlines. However, the question we most often ask is- what is the importance of a specific trendline that is drawn? There are three main rules that can be used to determine the importance of the trendline. We will take the exampleContinue reading “Three rules to identify the importance of a Trendline”

Using Trendlines to identify changes in Stock trends

In the previous blogpost, I explained how to identify whether the stock is in an Uptrend or a Downtrend. This week, let’s jump into how to use Trendlines to identify the points where a stock trend changes from Uptrend to Downtrend/Sideways and vice versa. What are Trendlines? Trendlines are nothing but straight lines connecting theContinue reading “Using Trendlines to identify changes in Stock trends”

Identifying the Stock trend

Before diving into understanding the basics of identifying the trend of a stock, you must read the previous blog about ‘Understanding Demand and Supply in Stocks’. What is a Trend? Google defines a trend as ‘a general direction in which something is developing or changing’. Yes, that’s right and everything in this world follows aContinue reading “Identifying the Stock trend”

Understanding candlesticks and interpreting them

Understanding Candlesticks The below image is from Investopedia which I will refer to, in order to explain candlesticks. A Black/Red candle signifies that the price moved down, during a specific time period. A White/Green candle signifies that the price moved up, during a specific time period. What is the significance of a Candlestick? Let’s takeContinue reading “Understanding candlesticks and interpreting them”

Understanding Demand and Supply in stocks

Demand and supply in the time of Covid The price of every product in this world, including stocks, is driven by demand and supply and depending on which is greater, the price either rises, drops or stagnates. The best example is the correlation between the recent corona virus and the demand for masks. No oneContinue reading “Understanding Demand and Supply in stocks”

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