So let's understand the guiding principles behind the candlestick analysis, the candlestick analysis,
no dates back to 17th century Japanese began using it to trade in rice.
So they started using technical analysis and technical analysis.
Candlesticks are a very important component.
This is how it started.
And these are the guiding principles of candlestick analysis.
First, guiding principle is very important, which is that what is more important than why in the market?
So basically.
What is happening with the price of that stock that is more important than why you don't get why it
is happening?
You only care what exactly is happening, what is happening?
Stock is going up.
If it is going up, then you'll buy it and profit from that.
If it is going down the new short and you'll make money from that, why it is going down invited going
up that we are not concerned about.
This is the first guiding principle behind kind of stick analysis.
Second is all the new information is already reflected in the price of that particular stock.
So if all the information is already reflected in the prices, there is no point in studying the other
aspects like news, earnings and fundamental factors.
So you just directly studied the price, directly studied the demand and supply, and then make your
trading decisions on the basis of that to these buyers and sellers.
The move markets based on expectations and emotions.
So many times, buyers and sellers, they are not rational, they normally trade on the basis of their
emotions like greed, fear, panic, euphoria, etc. This is how buyers and sellers make decisions.
Next guiding principle is, of course, market fluctuates.
And when market fluctuate, there are opportunities for buying and selling.
And you can earn money through that fluctuation.
And very importantly, the actual price may not reflect the underlying asset.
So I say that actual price of that particular stock should be hundred, but in reality that stock may
trade at 170 or it may even trade at 90 rupees.
Actual price is one hundred, but the price in market is little different than what it is actually getting
traded.
That is the logic behind Candlestick and technical analysis.