In candlestick charts how one can guess which stock will show much up move next day?

Question

I know the patterns but sometimesstock dont show the more movement.

Answer 1

Technical analysis is not for daily trading dear.. Its for long time investment. So come out of all these illusion.

Answer 2

Your falling into the trap that most people do - thinking that an indicator signal WILL result in a move in that direction. Technical analysis is all about probabilities. A reversal pattern in candlesticks is only and indicator of what MAY happen, not what WILL happen. That's what you need to learn. You need to use other analysis to confirm whether that signal is probably going to materialize. And even then, there is a chance it won't.

For example, let's say a stock is trending down and you get a hammer on candlesticks. But, let's say, the hammer is dead onto a pivot point and the hammer and pivot point are very near a Fibonacci level. Add to that that volume is decreasing and the price level of the hammer is a Gann Cardinal Square. That is a high probability trade to go long. Does it mean it WILL rally? No, but the chances of it rallying are higher with several indicators telling you the same thing. That's why you still need stop loss orders.

Trading is not about absolutes, it's about probabilities. That's what you need to remember.