Trading strategy using butterfly candlestick pattern

Trading strategy using butterfly candlestick pattern

BUTTERFLY CANDLESTICK PATTERN

INTRODUCTION Butterfly candlestick pattern aik technical analysis ka term hai jo stock market aur forex trading mein istemal hota hai. Yeh pattern bullish ya bearish trend ke baad aik reversal signal provide karta hai. Is pattern ka naam isliye butterfly rakha gaya hai kyunki iska shape aik butterfly ke jaisa hota hai. DETAILS Butterfly pattern do parts se bana hota hai: pehla part bullish trend ke baad hota hai aur doosra part ise complete karta hai. Pehle part mein do bearish candlesticks hote hain jo price mein decline ko indicate karte hain. Doosre part mein ek bullish candlestick hota hai jo price mein increase ko indicate karta hai. Is bullish candlestick ka high pehle do candlesticks ke highs ke beech mein hota hai. Is tarah se butterfly pattern complete ho jata hai. IDENTIFICATION Butterfly pattern ki identification ke liye trader ko price chart par dhyaan dena hota hai. Agar price chart par do bearish candlesticks followed by ek bullish candlestick ban rahe hain aur bullish candlestick ke high pehle do candlesticks ke highs ke beech mein aa raha hai to yeh butterfly pattern hai. ADVISE FOR TRADERS Butterfly pattern ki use karne se pehle trader ko iske baare mein sahi tarah se samajh lena chahiye. Is pattern ki accuracy ko improve karne ke liye, trader ko aur confirmatory signals ki talaash karni chahiye. Iske alawa, trader ko apne risk aur reward ratio ko bhi calculate karna chahiye. TRADING STRATEGY Agar aap butterfly pattern ka istemaal kar kay trading strategy develop karna chahtay hain, toh niche diye gaye steps follow kar saktay hain: STEP 1 Sab se pehlay market ki trend ko identify karen: Butterfly pattern ko identify karne kay liye aap ko pehlay market ki trend ko dekhna hoga. Yeh bullish ya bearish ho sakta hai. Agar market bullish hai toh aap ko bullish butterfly pattern ko dekhna hoga aur agar market bearish hai toh bearish butterfly pattern ko dekhna hoga. STEP 2 Butterfly pattern ko identify karen: Butterfly pattern ki shape ki wajah se ise identify karna aasan hota hai. Bullish butterfly pattern mein doo lambi candles aur doo choti candles hoti hain. Is pattern mein doo choti candles ek saath banaye jaatay hain aur lambi candles in dono choti candles ke darmiyaan hoti hain. Jab ke bearish butterfly pattern mein bhi doo lambi aur doo choti candles hoti hain lekin yeh bullish butterfly pattern ke ulta hota hai. STEP 3 Price action ko dekhna shuru karen: Butterfly pattern ko identify karne ke baad aap ko price action ko dekhna shuru karna hoga. Price action ko dekh kar aap ko confirm karna hai ke market trend kya hai aur kya price action butterfly pattern ke sath match kar raha hai. STEP 4 Entry aur exit points tayyar karen: Butterfly pattern ki shape ki wajah se entry aur exit points tayyar karna aasan hota hai. Bullish butterfly pattern mein aap ko buy order lagana hoga jab price third candle ki upper wali taraf se break karta hai. Is tarah ke breakout ke baad aap ko apni position ko hold karna hoga jab tak market ke bearish trend ki koi wajah na nikal aaye. Jab ke bearish butterfly pattern mein aap ko sell order lagana hoga jab price third candle ki lower wali taraf se break karta hai. Is tarah ke breakout ke baad aap ko apni position ko hold karna hoga jab tak market ke bullish trend ki koi wajah na nikal aaye. STEP 5 Risk management ka khayal rakhna: Trading mein risk management bahut ahem hota hai. Butterfly pattern ko use karte waqt bhi aap ko apni position ka size aur stop loss ka level sahi se tayyar karna hoga. SUMMARY Butterfly candlestick pattern aik technical analysis tool hai jo traders ki madad karta hai market trends ko samajhnay mein. Yeh pattern doosray patterns ki tarah hota hai jis mein aik specific shape banta hai. Butterfly pattern kay shapes bullish aur bearish donon scenarios mein paye jatay hain aur is ka use trading mein kiya jata hai. Butterfly candlestick pattern aik popular technical analysis tool hai jo traders ki madad karta hai market trends ko samajhnay mein. Agar aap is pattern ko sahi tareeqay se use karte hain toh aap apni trading performance ko improve kar saktay hain. NOTE Butterfly pattern ka use trading strategy mein karte waqt trader ko price ka trend aur market ki conditions ko bhi dhyaan mein rakhna chahiye. Is pattern ko sahi tareeqe se samajhne ke baad trader ise apni trading decision mein istemal kar sakta hai.