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So let's understand the guiding principles behind the candlestick analysis, the candlestick analysis,

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no dates back to 17th century Japanese began using it to trade in rice.

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So they started using technical analysis and technical analysis.

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Candlesticks are a very important component.

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This is how it started.

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And these are the guiding principles of candlestick analysis.

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First, guiding principle is very important, which is that what is more important than why in the market?

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So basically.

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What is happening with the price of that stock that is more important than why you don't get why it

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is happening?

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You only care what exactly is happening, what is happening?

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Stock is going up.

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If it is going up, then you'll buy it and profit from that.

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If it is going down the new short and you'll make money from that, why it is going down invited going

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up that we are not concerned about.

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This is the first guiding principle behind kind of stick analysis.

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Second is all the new information is already reflected in the price of that particular stock.

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So if all the information is already reflected in the prices, there is no point in studying the other

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aspects like news, earnings and fundamental factors.

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So you just directly studied the price, directly studied the demand and supply, and then make your

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trading decisions on the basis of that to these buyers and sellers.

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The move markets based on expectations and emotions.

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So many times, buyers and sellers, they are not rational, they normally trade on the basis of their

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emotions like greed, fear, panic, euphoria, etc. This is how buyers and sellers make decisions.

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Next guiding principle is, of course, market fluctuates.

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And when market fluctuate, there are opportunities for buying and selling.

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And you can earn money through that fluctuation.

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And very importantly, the actual price may not reflect the underlying asset.

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So I say that actual price of that particular stock should be hundred, but in reality that stock may

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trade at 170 or it may even trade at 90 rupees.

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Actual price is one hundred, but the price in market is little different than what it is actually getting

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traded.

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That is the logic behind Candlestick and technical analysis.