How to trade using island reversal candlestick pattern

How to trade using island reversal candlestick pattern

ISLAND REVERSAL CANDLESTICK PATTERN

BASIC INFO Island Reversal Pattern, ek technical term hai jo stock market mein use hota hai. Yeh pattern typically stock chart par dekha jata hai jab stock ka price trend ek taraf se change hota hai aur phir doosri taraf se aik chota sa area ban jata hai jise "island" kehte hain. Is island ke upar aur niche price level mein gaps hote hain. DETAILS Jab yeh pattern dekha jata hai to yeh traders aur investors ke liye ek indication hoti hai kah stock ka price trend change hone wala hai. Island reversal pattern dekhne ke baad traders typically apni trading strategies ko modify karte hain aur kisi bhi further price movements ko dekhne ke liye wait karte hain. TRADING STRATEGY Island reversal candlestick pattern ka matlab hota hai kisi stock ki price chart par aik aisa area jahan price ek choti si range ke andar baray tezi se giri aur uske baad wapis baray tezi se upar ki taraf badhna shuru kar diya. Jab is tarah ka pattern nazar aye to traders ko is se related trading strategy istemal kar sakte hain. Agar aap Island reversal pattern ki trading strategy use karna chahte hain to pehle to apko ek confirmatory signal ka wait karna hoga jaise kisi doji candle ka appearance ya phir price ki ek strong breakout ki waja se jo trend ko confirm karde. Uske baad aap ko is tarah ka plan follow karna hoga: STEP 1 Buy: Agar price ek island reversal pattern create karta hai aur confirmatory signal bhi aa jata hai tou aap ko khareedari ka signal mil jata hai. Aap apni khareedari position usi time open kar sakte hain ya phir agle din market open karne se pehle khareedari ka order place kar sakte hain. STEP 2 Stop loss: Apko khareedari ki entry point se niche stop loss lagana hoga. Yeh aap ki trading account ki equity ke hisab se decide karna hoga. Agar aap ki position 1000 shares ki hai aur apki equity $10,000 hai tou aap 5% ki stop loss lagakar apni position ko $9,500 par exit kar sakte hain. STEP 3 Target: Apko target price bhi decide karna hoga jahan aap apni position ko exit kar dena chahte hain. Is tarah ka target price apki trading strategy par depend karta hai lekin aik common rule hota hai ke apni position ko kam se kam 2:1 risk-reward ratio par exit kar dein. STEP 4 Island reversal pattern ki trading strategy istemal karna bhi baki trading strategies ki tarah risk se bhari hota hai. Aap is se mutaliq trading strategy ka istemal karne se pehle apni research karain aur apne investment goals aur risk tolerance ko samajh lein. SUMMARY Overall, Island Reversal Pattern ek important technical analysis tool hai jise investors aur traders istemal karte hain apni trading decisions ko improve karne ke liye. Stop loss ka use hamesha krny sy ap ka trading risk kum hota hy.