Single day patterns formed in a trading chart can be used to enter and exit trades. They can be helpful for both active traders and long-term investors. Although most single day trading patterns are considered less reliable, they can still provide a good indication of changing trends and future market movements. Moreover, every big change starts with single candlestick/day. Here are three single day chart patterns to look for.
Gap patterns: Gaps are common chart phenomena which can indicate possible trend changes. They are formed as a result of unexpected news and developments. But all gap patterns are not reliable and not good indicators. For a more detailed understanding, read different gap patterns and how to trade the gaps.
Islands of reversal patterns: Islands of reversals are a popular and reliable pattern of trend reversals. These are easy to identify and trade. Islands of reversals can be used by both active traders and investors alike. Like gap patterns, islands of reversals should be accompanied by drastic changes in trading volume.
Stars and doji candlesticks: When reviewed with respect to the trading volume and existing trend, star and doji candlesticks can offer very good insights of trend changes. These are also components of many reliable candlestick patterns. For more information, read star candlestick patterns and doji candlestick patterns.
Wide-range days: If the price range of day is amazingly wide, then that can indicate a possible trend change. Often high volatility is caused by intraday news. The direction of close, existing trend, volume and next day’s openings of wide-range days can indicate future trends.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Stock Trading, Stock Market Trading,
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
