We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- History tends to repeat itself – we modified this assumption by adding the factor angle.
- Candlestick patterns can be broken down into single and multiple candlestick patterns.
- There are three critical assumptions specific to candlestick patterns.
- Buy strength and sell weakness.
- Be flexible – quantify and verify.
- Look for a prior trend.
Can you remove the end cards and logo from the videos, it entirely covers the slide, which has the most important takeaways from the video
The key takeaways are mentioned in the post itself (see just below the video embed).
Buy strength and sell weakness.
Be flexible – quantify and verify.
what does it mean?
Akshay, please check the comments here – https://zerodha.com/varsity/chapter/introducing-technical-analysis/ have explained this in detail.
Pardon my ignorance, but do the videos and the text series contain the same information? Or do the text series contain some extra information?
The text contains some extra information. But wherever there is extra info to be covered, we have mentioned in the vidoe.
Got it, thanks! So basically if I only watch the videos, I won’t miss anything?
Hopefully, but do check the contents on both platforms.
Will do, thanks a lot!
Happy learning!
What is the lookback period when looking at a prior trend? For swing trading, if it is 6 months to 1 year, how do I actually identify prior trend? There would be a lot of ups and downs, the trend would change corresponding to the period taken even inside the 6 months. Could you please clarify
Yes, at least 6 months. The easiest way to identify the trend is by plotting a moving avg and checking how the price has moved wrt to the moving avg. That should give you an insight into the trend.
Why zerodha has no candle sticks pattern indicator? it makes no sense.
Candle patterns are there in kite, Naveen.
sir as we buy strenght and sell weakness this would actually lead us to loss is it not?
Not really, the assumption when you buy strength is that the strength will persist (momentum), and therefore you will get to ride on the momentum and gain.