How to Analyse Rise and Fall of Stock Trends?

How to Analyze Rise and Fall of Stock Trends?
  • By BYSOS Expert
  • May 05, 2021

The first information we search before creating a portfolio in Stock Market are the stock trends. Analysis is important to create the best portfolio, only this will help you to understand the stock trends. This will guide you with the navigation on ups and downs of the stock market. As per the Rise and Fall of stocks, the trends move UP, DOWN, or SIDEWAYS.

The trends are categorized as short term and long term. If a trend is moving longer then it is more worthy.

Let us learn how to analyse stock trend:

Table Of Contents
  1. What are Stock Trends?
  2. Types of Stock Trends:
    1. Uptrend:
    2. Downtrend:
    3. Sideways:
  3. How to analyze stock trends with candlesticks?
  4. Types of bull candlesticks:
  5. Types of bear candlesticks:
  6. What is a Bear trend?
  7. What is a Bull Trend?
  8. How to learn the analysis of Stock Trend with Stock Fantasy Games?

1. What are Stock Trends?

Stock Trends navigate us to the prices of stock or stock market in complete.

The market trendlines and the share actions tells us the Uptrend and Downtrend in the market. Traders are flexible, some trade the ongoing trend and some trade against it! All the stock trends are categorized into uptrends, downtrends, and sideways.

2. Types of Stock Trends:

Uptrend:

When the prices are closed higher than the day before then the trend can be termed as an Uptrend. The upward tendency, especially a rise in economic value. It is normal when factors improve, the prices start moving up and creates an Upward Trend. An uptrend stock is termed as “Bull market”. Traders buy at this ongoing Uptrend.

Downtrend:

When the prices are closed lower than the day before then the trend can be termed as a Downtrend. The downward tendency, especially create a fall in economic value. A downtrend stock is termed as “Bear market”. Traders sell at this ongoing Downtrend.

Sideways:

The price movement goes horizontal if the supply and demand are equal and this is termed as Sideways trend. It happens when factors neither improve nor fall but remains stagnant. Sometimes the trend may remain in the same position for few weeks or a few years.

3. How to analyse stock trends with candlesticks?

Candlesticks helps us to know if the ongoing trend is an uptrend, downtrend, or sideways.

With the help of candlesticks, traders can:
  • Know the completion of trades
  • Shows buying or selling pressure

The Bull Candlestick will show that the ongoing downtrend will end, and it may reverse to an uptrend.

4. Here are the 5 Powerful Bull Candlesticks which will help to analyse if the ongoing trend will continue or reverse:

  • Hammer
  • Piercing Pattern
  • Bullish Engulfing
  • The Morning Star
  • The Three White Soldiers

The Bear Candlestick will show that the ongoing uptrend will end, and it may reverse to the downtrend.

5. Here are the 5 Powerful Bear Candlesticks which will help to analyse if the ongoing trend will continue or reverse:

  • Hanging Man
  • Dark Cloud Cover
  • Bearish Engulfing
  • The Evening Star
  • The Three Black Crows

6. What is a Bear Market / Trend?

A Bear Trend is called as a downward trend. The overall fall in stock market is a Bear Trend or Bear Market. The heavy selling pressure when there is a fall in prices of about 20 - 30% is identified as Bear Trend.

7. What is a Bull Market / Trend?

A Bull Trend is called as an upward trend. The overall rise in stock market is a Bull Trend or Bull Market. The heavy buying pressure when there is a rise in the prices of about 20 - 30% is identified as Bull Trend.

8. How to learn the analysis of Stock Trend?

The first and foremost thing to do is Practice and have patience. You know " Practice makes participants perfect". The best way to practice is using simulators or fantasy games.

There are fantasy games which are related to stock market, like; BYSOS Stock Fantasy Game, you can play games, learn the stock analysis, and earn real cash. Click here to Play

BYSOS allows you to create a portfolio of stocks, this helps you to know how the stock market is trending. You will need to analyse the share prices of companies which are listed in NSE and select 12 out of given 20 stocks in the BYSOS Stock Fantasy App. The best portfolio will be eligible to top in the ranking list and be a champion.

Download the App now. Start playing, learning, and earning!

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