Let’s have a look at the chart above. It is a candlestick chart without any of it’s parameters like price or volume specified.
If you considered it to be the chart of a stock, what inference would you derive about the stock?. One would certainly say that the stock looks very strong.It is rising for over a year and holding it’s uptrend.The immediate presumption would be that the stock can continue rising…
The chart is that of the daily price movement of the Nifty for the past one year.It certainly looks strong heading into 2010.
Let’s take a look at the weekly chart of the index for the past decade.