Vivekanand Education Society’s

Institute Of Management Studies & Research

SUMMER INTERNSHIP REPORT

ON

TRADING DECISIONS THROUGH TECHNICAL

ANALYSIS

(Using Chart patterns, Candlestick patterns and Divergences)

at

Sharekhan, Ulhasnagar

Submitted By

Mr. Saish Sandeep Sawant Dessai

Roll No. 93

MMS (Finance)

Batch: 2017-2019

Under The Guidance Of:

Mrs. Laxmi Goritiyal

Industry Guide:
Mr. Ganesh.M. Funde

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2|Page
 DECLARATION

I, Saish Sandeep Sawant Dessai, student MMS – Semester II of Vivekanand Education

Society’s Institute of Management Studies & Research, Chembur, Mumbai, hereby declare
that, I have completed Summer Internship Project on “Trading decisions through technical
analysis”

At Sharekhan, Ulhasnagar during the academic year 2017 - 2019. The information submitted
is true and original to the best of my knowledge.

MR. Saish Sandeep Sawant Dessai

Roll No. – 93

MMS (FINANCE)

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 ACKNOWLEGEMENT

The completion of this project required the co-operation and guidance of many people and I
am extremely fortunate to have got all this throughout the completion of my project.

I would like to thank Mr. Ganesh Funde for the opportunity given to me to pursue an
internship at his esteemed organization without which I would not have been able to garner
such a valued experience at my internship.

I am also very grateful to Dr.Laxmi Goritiyal my guiding mentor who has guided me
throughout my three months internship. Without her assistance my project would not have been
a successful completion.

Mr. Saish Sandeep Sawant Dessai

Roll No : 93

MMS (Finance)

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 CERTIFICATE

This is to certify that Mr. Saish Sandeep Sawant Dessai student of Vivekananda Education
Society’s Institute of Management Studies & Research, Mumbai specializing in Finance
has completed his Summer Internship Project on” TRADING DECISIONS THROUGH
TECHNICAL ANALYSIS” at “Sharekhan Ltd” during the academic year 2017 – 19.

For VESIM,
Dr. Laxmi Goritiyal

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 Table of content

Sr. no. Topic Page Nos.

1 Executive Summary 8

2 Industry Analysis 9

2.1 Competitors profiling of the Industry 9

2.2 Challenges faced by the industry 10

2.3 Government Regulations 10

3 About the company 11

3.1 Genesis of the company and its vision and mission 11

3.2 Product and services 12

3.3 Position in the industry 13

3.4 Location and Operational details 13

3.5 Company Financials 13

3.6 SWOT Analysis of the company 13

3.7 Achievements of the company 14

4 On the job training 15

4.1 Key Results Areas 15

4.2 Skills Required 15

5 About project 16

5.1 Objectives 16

5.2 Research methodology 16

5.3 Sources of information 16

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 6 What are chart patterns 17

6.1 Symmetrical triangle 17

6.2 Cup and handle 19

6.3 Rising Wedge 23

7 What are candlestick patterns 25

7.1 Bullish engulfing pattern 26

7.2 Bearish harami pattern 28

7.3 Tweezer top pattern 30

8 Heikin-Ashi chart pattern 32

9 Relative Strength Index 34

10 Determination of trend 36

11 Range shift 36

12 Long term decisions using divergence 38

12.1 Maths error or divergence 38

13 Classification of divergence 39

13.1 Simple or classic bearish divergence 40

13.2 Simple or classic bullish divergence 41

13.3 Hidden bullish divergence 42

13.4 Hidden bearish divergence 43

13.5 Multiple divergence 44

14 Conclusion 45

15 References 46

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1. Executive Summary

Share market is fluctuating very quickly and the real worth of the shares also is unstable. The
investors need to know the trend of the share value fluctuations and the stability of share price
movements. To minimize risk and to gain profit in the market we use derivatives instruments.

Many associate the financial market mostly with the equity market. The financial
market is, of course, far broader, encompassing bonds, foreign exchange, real estate,
commodities, and numerous other asset classes and financial instruments. A segment of the
market has fast become its most important one: derivatives. The derivatives market has seen
the highest growth of all financial market segments in recent years. It has become a central
contributor to the stability of the financial system and an important factor in the functioning.

The turnover of derivatives in NSE is growing consistently but the BSE derivatives turnover is
relatively low. Finding the reasons for decline in BSE derivatives is necessary for further
progress of this market on the BSE. There are various factors responsible for the derivatives
turnover difference in both the exchanges. Such as promotion, annual charges of exchanges,
liquidity, and convenience are some of the factors. Data representation technique used by NSE
is convenient to the investors. Competition prevailing in the market is healthy for the investors
and for this reason, BSE needs to take immediate and significant steps towards increasing its
market share in this segment.

The Study is based on “Analysis before taking trading decisions” with special
reference to the Indian context and the Inter-Connected Stock Exchange have been taken as
are presentable sample for the study. The study can’t be said as totally perfect. Any alteration
may come. The study has only made a humble attempt at decision making in derivatives market
only in India context. The study is not based on the international perspective of derivatives
markets, which exists in NASDAQ, CBOT etc.

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2. Industry Analysis

The brokerage industry is currently characterized by a large number of companies. The

broking sector is one of the emerging sectors in India. Top ten companies are holding more
than two third (66%) of the total terminals. In effect, it is a fragmented industry with a large
number of participants. The industry gained momentum in terms of scope and scale.
Competition in the broking space has intensified with the entry of new firms. Trading, IPOs
and Mutual Funds are the top three products offered by 90% of firms offering trading, 67%
IPOs, and 53% offering Mutual Fund transaction.

2.1 Competitors profiling of the Industry

 Motilal Oswal Securities Ltd

Itsfocus on customer first attitude, ethical and transparent business practices, respect
for professionalism, research-based value investing and implementation of cutting
edge technology have enabled it to blossom into a thousand member team. The
institutional business unit has relationships with several leading foreign institutional
investors in the US, UK, Hong Kong and Singapore.
 ICICI Direct
ICICI Direct is a stock trading company of ICICI Bank, Along With stock trading and
trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,
Mutual Funds and Bonds. It also provides linked saving account with ICICI Bank.
 HDFC Bank
HDFC Bank is one of the leading Depository Participant (DP) in the country with
over 8 lac Demat account.
 Kotak Securities Ltd
The company has 42 branches servicing around 100000 customers.
kotaksecurities.com, the online division of Kotak Securities Ltd offers internet
broking services and also online IPO and Mutual Fund Investments.
Kotak Securities Ltd manages assets over 1700 crores under Portfolio Management
Services which is mainly to the high end of the market. Kotak Securities Ltd has
newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management
Services which looks into the middle end of the market.
 5Paisa.com
5Paisa is the trade name of India Infoline Securities Private Ltd, amember of NSE and
BSE. It is India’s leading and most popular finance and investment portal. The
Company’s brokerage is one of the lowest in the industry.

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2.2 Challenges based on the industry
a. Investor Education and Participation
 Moderate Investor participation
 Mindset Issues (erroneous approach/ enter during thelast leg of bull run)
 Long-term and portfolio approach missing
 Missing Tax efficient capital creation opportunity
b. Poor DIIs participation
 Subdued AUM of MFs/ insurance companies
 Compelled participation in disinvestments
 Negligible participation by Pensions Funds
c. Change in Revenue Mix
 Decline in cash market volume
 Traders moving to Commodities and Currency
 Investors moving to Mutual Funds
d. Pressure on Profitability
 Lower yield
 Competitive pressure
 Moderate non-broking/ distribution revenue
 Higher employee and operating cost
e. Operational Issues
 Stringent Penal provisions and rising compliance cost
 State-level Stamp Duty
 Frivolous Investor Grievances and Criminal Actions

2.3 Government Regulations

Broking houses have to adhere the Stock brokers and sub-brokers regulations, 1992 given by
SEBI. By this act, qualification of being a broker and registration of a stock broker and sub-
brokers is given explicitly. Certifications are compulsory for stock broker and sub-broker.

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3. About the company

Sharekhan Ltd.

3.1 Genesis of the company and its vision and mission

Sharekhan is a stock broking company and incorporated in 2000 by Shripal Morakhai.
Sharekhan is the retail broking arm of SSKI Group (S. S. Kantilal Ishwarlal Securities Pvt.
Ltd.). Sharekhan is India’s 2nd largest broking house. Sharekhan provides brokerage services
through its online trading website Sharekhan.com and 2268 outlets which include branches &
franchises in over 525 cities across 28 states in India. Sharekhan Limited is one of the fastest
growing financial services providers with a focus on equities, derivatives and commodities
brokerage execution on the National Stock Exchange of India Ltd. (NSE), Bombay Stock
Exchange Ltd. (BSE), National Commodity and Derivatives Exchange India (NCDEX) and
Multi Commodity Exchange of India Ltd. (MCX).

Founded by – Shripal Morakhia

Website – www.sharekhan.com

Vision – To be the best retail broking brand in the retail business of the stock market

Mission – To educate and empower the individual investor to make better investment
decision through quality advice and superior services

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About BNP Paribas
BNP Paribas is the largest Bank of the EURO Zone. It has a presence in 75 countries with 1,
90,480 employees. It ranks highly in its two core activities: Retail Banking & Services
(comprised of Domestic Markets and International Financial Services) and Corporate &
Institutional Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy
and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP
Paribas is rolling out its integrated retail banking model across Mediterranean basin countries,
in Turkey, in Eastern Europe and a large network in the western part of the United States.

BNP Paribas has been present in India for over 150 years and offers solutions to its clients
through its Corporate and Institutional Banking and International Financial Services activities.
BNP Paribas was one of the first foreign banks to establish a presence in India in 1860. Today,
it is among the leading corporate banks in the country, with branches in eight major cities. BNP
Paribas offers a wide range of financial services covering corporate and institutional banking,
transaction banking and wealth management. In addition, BNP Paribas has subsidiaries and
strategic partnerships that offer solutions from International Financial Services businesses.

BNP Paribas successfully acquired Sharekhan on 24 November, 2016. Sharekhan joined BNP
Paribas’ Personal Investors division, which is a key player in retail brokerage and digital
banking services with 1.7 million clients in Europe.

3.2 Products and Services

Sharekhan has a wide range of products and services. They are as follows-

1. Equities
2. Derivatives
3. Currency
4. Commodity
5. Online IPO
6. Bonds and Government Securities
7. Mutual Funds
8. Portfolio Management Service
9. Investment Advisory Service
10. Professional Training for Traders
11. Fundamental Research
12. Technical Research
13. Internet-based online trading
14. Software based trading : TradeTiger

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3.3 Position in the Industry
Sharekhan, The India’s 2nd most searched stock broker after ICICI direct. Sharekhan is
amongst top 3 in terms of customers. Sharekhan is one of the most visible brands since
inception. It has 1.4 million clients and out of this 83 %is online.

3.4 Locational and operational details

Sharekhan is operating in more than 575 cities. Sharekhan has 2368 shareshops. These include
153 branches and 2215 franchises. Registered of Office of Sharekhan is located at Kanjurmarg,
Mumbai.
Sharekhan is operated in India as well as in Dubai.

3.5 Company Financials

Mr. Jaideep Arora :- CEO and Whole-time Director

Mr. Shankar Vailaya :-Whole-time Director

Pathik Gandotra :- Head Research

Rishi Kohli :- Vice President of Equity Derivatives

Nikhil Vora :- Vice President of Research

3.6 SWOT Analysis of the company

a. Strength
 Big client base
 Well maintained infrastructure
 In-house research
 Online as well as offline trading
 Wide product range to enable the clients to choose the best alternative
 User friendly software
 Excellent order execution speed and accuracy
b. Weakness
 Lack of awareness among customers
 Less focus on customer reduction
 Sharekhan never promotes itself through the advertisement
c. Opportunities
 Diversification
 Product Modification

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  Provide competitive brokerage
 Focus on Institutional Investors
 An indirect opportunity arise as market goes bullish
d. Threats
 Decreasing rate of brokerage in the market
 Aggressive Promotional strategies by close competitors
 More and more players are entering into this domain
 Stock Market is very Volatile, risk involved is very high

3.7 Achievements of company

 “CNBC Awaaz Customers Award 2005”
 It was Winner of “Best Financial Website” award.
 A wired company along with Reliance, HII, Infosys, etc. by ‘Business Today’ January
2004 edition.
 India’s most preferred brokers within 5 years.
 It was awarded ‘Top Domestic Brokerage House’ four times by Euro and Asia
money.

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4. On the Job Training

4.1 Key result area

During the training of 3 months at Sharekhan private limited. We learnt about how to do
live trading in market, how to handle clients portfolio. We have done some branch
operations and client KYC & acquisition.

4.2 Skills acquired

While working, I got the knowledge about primary and secondary markets along with how
to do terminal trading, how to analyze the different factors affecting the market movement,
the KYC procedure, communication skill, presentation skill, corporate manners, Problem
solving, Adaptability, Time management.

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5. About Project

5.1 Objectives
 To take decisions in the market using Divergences and Chart patterns.
 To decide whether to take a buy/sell position in futures and equities.
 To study about various chart patterns and divergences.

5.2 Research Methodology

There are different types of methodology used to do research. Descriptive research
methodology is used in this project. It describes the various aspects of decisions to be taken
using technical indicators theoretically and practically.

5.3 Sources of information

5.3.1 Primary information
 Trading in Share market.
 Training given by Industry mentor at Sharekhan Limited.
 Interactions with Clients of Sharekhan.

5.3.2 Secondary information

 The brochures and materials provided by the Sharekhan private Limited.
 The data collected from the magazines of NSE, economic times, etc.
 The lectures delivered by the superintendents of the respective departments.
 Various books relating to the investment, capital market, and other related topics
 Data existing in the form of Books, Internet, Catalogues and trade tiger etc.

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6. WHAT ARE CHART PATTERNS?
A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign
of future price movements. Chartists use these patterns to identify current trends and trend
reversals and to trigger buy and sell signals.

The theory behind chart patterns is based on this assumption. The idea is that certain patterns
are seen many times, and that these patterns signal a certain high probability move in a stock.
Based on the historic trend of a chart pattern setting up a certain price movement, chartists
look for these patterns to identify trading opportunities.

THEY ARE USED FOR TAKING SHORT TERM TRADING DECISIONS.

There are many such patterns, out of which we will see a few.

6.1 SYMMETRICAL TRAINGLE:-

 Two trend lines converge toward each other

 This pattern is neutral in that a breakout to the upside or
downside is a confirmation of a trend in that direction
 Volume breakout

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EXAMPLE:-

EXPLANATION-
The above chart is of INDIABULLS HOUSING FINANCE. We can clearly see a symmetrical
triangle formation in the chart, which gave an idea that there will soon be a breakout.
The white circle indicates that there has been a downside breakout.

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6.2 CUP AND HANDLE :-

 A cup and handle chart is a bullish continuation pattern in which the upward trend has
paused but will continue in an upward direction once the pattern is confirmed
 The handle follows the cup formation and is formed by a generally
downward/sideways movement in the security's price.
 Once the price movement pushes above the resistance lines formed in the handle, the
upward trend can continue.

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EXAMPLE:-

EXPLANATION-
The above chart is of BANK NIFTY INDEX. We see the bullish trend coming to a pause,
and forming a Cup and Handle pattern. The price after completing the cup is forming a
handle. If one has to take a trade decision, he should think of a sell position.

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The below image is of a paper trade-

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The following image is of a live trade

This is called a contract note.

A contract note is, a certificate confirming the terms of a sale of specified assets or
securities between two parties.

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6.3 RISING WEDGE-

 The wedge chart pattern can be either a continuation or reversal pattern

 Similar to symmetrical triangle, except the wedge pattern shows a upward and
downward slant, whereas the symmetrical triangle generally shows a sideways
movement.
 Wedges are classified as both continuation and reversal patterns
 Two trend lines converge towards each other
 If price was to rise above the upper trend line, it would form a continuation pattern
 Move below the lower trend line would signal a reversal pattern

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EXAMPLE-

EXPLANATION-
The chart is of NIFTY INDEX. We see the two trend line F1 and F2
are converging towards each other, and we see that the price is moving in upwards trend
channel, we can say that nifty is forming a rising wedge pattern.

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7. WHAT ARE CANDLESTICKS?
 Way of communicating information about how price is moving
 These charts are made of bars that have little lines stemming from the top and bottom
 Candles convey 4 pieces of information:-
1. Open price
2. Close price
3. High price
4. Low price
 These candles refer the information for a specific unit of time

CANDLE DEFINITION:-

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  Traders use the candlesticks to make trading decisions based on regularly occurring
patterns that help forecast the short-term direction of the price
 We will see a few candlestick pattern formation
 THEY ARE USED TO TAKE MEDIUM TO LONG TERM TRADING
DECISIONS.

7.1 BULLISH ENGULFING PATTERN-

 The setup is downward

 It is a two candle reversal pattern
 The 1st candle has a smaller real body, while the 2nd longer candle completely engulfs
the first candle body

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  It a very bullish reversal pattern
 The price trades above the body of the 2nd candle

EXAMPLE-

EXPLANATION-
The above chart is of CONCOR (CONTAINER
CORPORATION OF INDIA LTD). As we can see that there is a downward trend. The
marking shows that a big green candle has engulfed the previous candle and hence there is a
change in trend.

TRADE DECISION-
One can enter in trade as soon as they see such candlestick
formation. They can take a buy position after there is a change in the trend.

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 7.2 BEARISH HARAMI PATTERN-

 The setup is uptrend

 It is a 2 candle reversal pattern
 The 2nd candle real body is contained within the 1st candle real body, this candle will
be red in color.
 It is found at the market top
 We will get the conformation once the price trades below the pattern.

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EXAMPLE-

EXPLANATION-
The above chart is of INFOSYS LTD. As the marked area shows that there is a reversal
pattern, the prior uptrend comes to end.
The 1st green candle signals that the uptrend will continue, but then a red candle which
contained within the 1st green candle, and hence a BEARISH HARAMI PATTERN is been
observed.

TRADE DECISION-
As soon as the 2nd candle is formed and confirms the pattern, one can take a sell position.

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 7.3 TWEEZER TOP:-

 2 candle bearish reversal pattern

 The setup is uptrend
 It is for identifying a resistance level
 The tweezer forms when two or more candles upper shadows forms at the same level,
confirming the strength of the resistance.

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EXAMPLE:-

EXPLANATION-
The above chart is of BANK NIFTY INDEX. The highlighted part shows us that
the shadow of both the candles are facing resistence level. And hence the trend reversal
happened.

TRADE DECISION-
One can enter in the trade when the other candle confirms that it faces
resistance, then the trader shall take a sell position.

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8. HEIKEN-ASHI CHART-

 Heikin-Ashi Candlesticks are an offshoot from Japanese candlesticks

 The resulting candlestick filters out some noise in an effort to better capture the trend.
 When price are in trending up, the heiken ashi bars have no lower shadow and the
price can go up. This means a bullish trend.
 IF YOU ARE IN LONG BUY, DO NOT EXIT YOUR POSITION, YOU MAY
TRAIL YOUR STOP LOSS TO COST TO COST OR 50% PROFIT
 When price are trending down, heikin ashi bars have no upper shadow and price can
fall down
 Heikin ashi bars have no upper shadow, it means bearish trend
 IF YOU ARE IN SHORT SELL DON’T EXIT YOUR POSITION, YOU MAY
TRAIL YOUR STOPLOSS TO COST OR 50% PROFIT

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EXAMPLE

EXPLANATION-
As we can see the white line indicating that the heikin ashi candles are going in an uptrend
and it is not showing any lower shadow, which means the price is going in uptrend.

TRADE DECISION-
One can enter in the trade when, the trader sees the green heikin ashi candles forming, and
can get a confirmation when the 2nd green candle is above the half of the 1st green candle and
can take a buy position.

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9. RELATIVE STRENGTH INDEX (RSI)

The relative strength index (RSI) is a technical indicator used in the analysis
of financial markets.

 It is an indicator which usually assumes to test the strength and movement in

the market.
 RSI has fixed boundaries with values ranging from 0-100.
 For each upswing in price, there is a similar upswing in RSI. When price swings
down, RSI also swings down.
 The green line in RSI denotes buying, where as the red line denotes selling
 RSI is considered overbought when above 70 and oversold when below 30
 Signals can also be generated by looking for divergences, centerline
crossovers.

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COMPARING PRICE AND RSI FOR A BETTER TRADING
DECISION

NOTE:- Here the price and indicator are agreeing with each other.

NOTE:- Here the price and indicator does not agree, hence the trader should not take any
decision.

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 10. DETERMINATION OF TREND

 In a Bull market RSI value tends to travel in between 40-80 zones.

 In a Bear Market RSI value tends to travel in Between 60-20 zones.
 In Sideways market RSI Value tends to travel in between 40-65 zones.
 In extreme or very strong Bull market RSI bound in 60-90 levels.
 In extreme or very strong Bear market RSI bound in 40-10 levels.

 Value above 95 and below 5 is very rare.

11. RANGE SHIFT:-

Range Shift simply means when a security changes it’s trend.

 From Uptrend to downtrend.

 From Downtrend to uptrend.
 From Sideways to uptrend/downtrend.
 From Uptrend/Downtrend to Sideways.

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EXAMPLE OF RANGE SHIFT

EXPLANATION-
The above image is a monthly chart is of TATA CONSULTANCY SERVICES (TCS).
The two lines H1 and H2 are the resistance lines. As soon as the RSI went above 80, we
could see the first resistance was broken, and soon it went past the second resistance i.e. H2.
We can clearly see that the price is now trading in a new range.

Also the later half of the chart, the RSI is falling down to the 50 level, the price also has
fallen down, but did not fall to the previous level, that is because the price has shifted its
range, and will not come to that level anytime soon.

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12. TAKING LONG TERM DECISIONS USING DIVERGENCE

12.1 Math’s error or divergence-

It can be defined as whenever there is a misunderstanding between price and indicator they
used to get divert from each other and moved in opposite direction to each other.

In technical analysis, divergence is considered to be positive or negative. Either direction is a

signal of a major shift in the direction of the price. Positive divergence occurs when the price
of a security makes a new low while the indicator starts to climb.

BEARISH DIVERGENCE BULLISH DIVERGENCE

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13. CLASSIFICATION OF DIVERGENCE

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 13.1 SIMPLE OR CLASSIC BEARISH DIVERGENCE-

Whenever price makes a higher high n RSI makes lower high then it is said to be Simple
Bearish Divergence.

Simple Bearish Divergence occur in bull market, commonly known as retracement or

correction.

EXAMPLE-

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EXPLANATION-
The above chart is of BANK NIFTY FUTURES, the above line shows us that the
price is making new highs, i.e. higher high and the bottom line is making new lows, i.e. lower
high, a simple bearish divergence is been seen.

13.2 SIMPLE OR CLASSIC BULLISH DIVERGENCE-

Whenever price makes a lower low n RSI makes higher low then it is said to be Simple
Bullish Divergence.

Simple Bullish Divergence occur in bear market, commonly known as short covering.

EXAMPLE AND HOW IT IS CALCULATED

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HIGH- 26438

LOW- 26068

DIFFEREENCE- 26438-26068= 370

370+26438= 26808

After finding the Simple bullish divergence, take the difference between the high and low,
which comes to 370, from there onwards there has to be a rally of twice the difference.

13.3 HIDDEN BULLISH DIVERGENCE-

 Whenever RSI makes a lower low & price makes a higher low then it is said to be
Bullish Hidden Divergence.

EXAMPLE

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EXPLANATION-
The above chart is of BANK NIFTY FUTURE. As the above line depicts that price is making
higher low and the lower line shows that RSI is making lower low, hence we can see a hidden
bullish divergence.

13.4 HIDDEN BEARISH DIVERGENCE-

Whenever RSI makes a higher high & price makes a lower high then it is said to be Bearish
Hidden Divergence.

EXAMPLE-

EXPLANATION-
The above chart if of BANK NIFTY INDEX, the first line above shows us that the price is
making lower high, and the line below shows that RSI is making higher high. Also later in
the day we could see a significant decline, so there was a hidden bearish divergence present.

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 13.5 MULTIPLE DIVERGENCE-

 Whenever price makes a series of lower low n RSI makes a series of higher low it
known to be Multiple Simple Bullish Divergence.
 Whenever price makers a series of higher high n RSI makes a series of lower high it is
known to be Multiple Simple Bearish Divergence.
 Whenever RSI makes a series of lower low n Price makes a series of higher low it is
known to be Multiple Hidden Bullish Divergence.
 Whenever RSI makes a series of Higher high n Price makes a series of lower high it is
known to be Multiple Hidden Bearish Divergence.

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 14. CONCLUSION

 For one to take a decision while trading should do his analysis first with the help of
Divergences, Chart patterns and Candlestick patterns.
 For a long term, one can forecast the future movement using divergence.
 For a medium to short term, one can track the future moment, with the help of
candlestick patterns, but it is for a specific amount of time.
 For a short term and quick trading, one can trade using the chart patterns, which are for
a limited period of time.
 Many traders take their position accordingly looking at the charts.
 The one who can track the movement, can easily earn higher profits.

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 15. REFERENCES

BOOKS
 21 Candlesticks every trader should know

WEBSITES

 https://www.sharekhan.com/
 http://www.moneycontrol.com/indian-indices

APPLICATION
 Sharekhan trade tiger
 Sharekan mobile

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