Hello friends, I am nikhil and this is my first post so pardon me if I fail to adhere to any guidelines. I have a doubt, if the prices r decreasing and volumes are also decreasing, could this be a ign towards a bullish pattern to form or the price to hike? If yes, why? Thank you.
Welcome nikhil. There are many patterns in trading. There are many reasons stock prices fall, trading volume decreases, etc. With so little information, it's hard to give a more detailed answer. I'll just give one example. If stock price is going down, it means more shares are selling than are being bought. It could be for any reason. People taking profit, downgrade from a firm (from buy to neutral, or neutral to sell for example), bad news for the company in the media, etc. I wouldn't call the price going down "being bullish", but it could create buying opportunities for a price rebound later. Bad news for example could get sold by stockholders, and when the price gets to a certain price, buyers could come in as the price has dropped to a price that they now like the opportunity for investment. I hope that answered your question...
I got it, sir. Good explanation. A red candled hammer means the price could drop even further we could see more red candles ahead, right? Also, do we have to pay attention to small candles? They neither bring about major price hikes nor price drops but I just glance through them. Your thoughts on small candles, sir? I am new to trading so I would really appreciate getting all the help from you. Thank you sir.
