Comment on Getting Started with Candlesticks

RAJAN A.T. commented on 05 Dec 2017, 11:59 AM

Sir,
I am RAJAN A. T. of KITE reference no ZB 2125
I have noticed following points in the candle sticks pattern chapter 4.
Point – A
Buy strength and sell weakness – Strength is represented by a bullish (blue) candle and weakness by a bearish (red) candle. Hence whenever you are buying ensure it is a blue candle day and whenever you are selling, ensure it’s a red candle day.
I am a bit confused , On buying an option on a blue candle day , as the price goes higher, by selling at the peak rate the trader can book maximum profit. Am I right or wrong?
But the bearish candle stick shows the option value going down. Hence when a trader sells on a red candle day the return is apparently getting reduced. and the trader will ultimately face the LOSS
In this context how can the above POINT – A will be evaluated.
Please eloberate & clear my doubt/ confusion

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