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Showing posts from December, 2025
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  Evening Star Candlestick Pattern In technical analysis, candlestick patterns help traders identify potential market reversals and trend continuations. One of the most reliable bearish reversal patterns is the Evening Star . This pattern often appears at the top of an uptrend and signals a possible shift from bullish to bearish momentum. What Is the Evening Star Pattern? The Evening Star is a three-candlestick pattern that forms after a strong upward trend. It indicates that buying pressure is weakening and sellers may soon take control. Structure of the Evening Star First Candle (Bullish): A long green (or white) candle that confirms strong buying momentum. Second Candle (Indecision): A small-bodied candle (doji or spinning top) that gaps up, showing market indecision. Third Candle (Bearish): A strong red (or black) candle that closes well into the body of the first candle. This sequence visually resembles a star at the top of a price move—hence the name Evening Star , symb...
  Fundamental Analysis Explained in a Simple Introduction When people start investing in the stock market, one of the first questions they ask is, “How do I know if a stock is really worth buying?” This is where fundamental analysis comes in. Fundamental analysis is not about quick profits or guessing price movements. It is about understanding a business—how it earns money, how stable it is, and whether it has the potential to grow in the future. Investors who use this method usually think long-term and believe that good companies will eventually be rewarded by the market. What Is Fundamental Analysis? Fundamental analysis is the process of evaluating a company’s true value by studying its financial performance, business model, management quality, industry position, and the overall economy. Simply put, it helps investors answer three important questions: Is this company financially strong? Is it growing or capable of growth? Is the current stock price fair compared to its actual...
  Indicators : A Complete Guide for Beginners and Professionals Introduction Indicators are tools used to analyze data and support decision-making. In finance, business, economics, and science, indicators help measure performance, identify trends, predict future outcomes, and reduce uncertainty. This blog focuses primarily on technical indicators used in financial markets , while also explaining the general concept of indicators for broader understanding. What Are Indicators ? An indicator is a measurable value derived from data that provides insight into the condition, direction, or strength of a system. In trading and investing, indicators are mathematical calculations based on: Price Volume Open Interest Time They help traders and investors: Identify trends Spot entry and exit points Measure momentum and volatility Confirm price movements Indicators do not predict the future with certainty , but they improve probability-based decision-making. Types of Indicators 1. Technical In...