Refer comments below
, , DOJI
, , DOJI
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Title: Evening Star or Doji Pattern – Nifty – 07Feb19
Trade plan:
• Recent price fall rise is witnessed. This is a reversal pattern.
• Thin body, star shaped candle formation after the recent price rise
• Volume is not high on the day of Doji pattern formation in this case. For the purpose of explanation I am ignoring it but please note that high volume is a strong signal indicating trend reversal. I would hesitate to enter into a trade without a high volume.
• Short position created. Risk:Reward is 1:1.
• Entry price set at the low of Doji (A) = Rs 11042
• Stop loss set at high of Doji (B) = Rs 11117
• Target to exit (Sell) at A – (A-B) = Rs 10967
• Risk = A-B
Correction above
• Target to exit (Buy) at A – (A-B) = Rs 10967
Hi sir,
Please avoid if the condition is not met. A candlestick reversal pattern on high volume carries more weight than a candlestick reversal pattern on low volume so, volume plays a significant role in the buying and selling of the stocks.
Noted Naresh.