Candlestick Analysis

Weekly traders can use candlestick patterns for analysis . Significant volume plays a good role in candlestick analysis

Engulfing Pattern
Latest green body should cover previous red body. Trading volume might increase during engulfing day
Bullish engulfing should appear after a price fall. Reliable and appear frequently. Suitable for long position.
When to buy? When the price goes above the engulfing pattern’s higher end. Stop loss: when the price goes below the lowest end in the engulfing pattern.

Piercing Pattern
Appears very rarely and indicate trend reversal. Reversal pattern is good for weekly traders
Pattern: Latest green body should cover previous days low. The bull body should cover atleast 50 % of previous day. Upper tail should be small in size and volume may increase. Good to create long position.
When to buy? When the price goes above previous red candle’s higher price. Stop Loss. When the price goes below the lowest end of the piercing pattern.

DOJI

Japanese word nothing but neutral. Good Doji appear very rarely and powerful
Criteria
Appearance of DOji after a price fall. Thin body start shaped candle is DOJI. Volume should be high during Doji days indicate reversal
Doji after sideways trend may not indicate anything. Long position can be taken. Target can be 2 times of risk taken.

Morning and Evening Star
Bullish DOJI is morning start and bearish DOJI is evening star.
When to buy is? When the price goes up DOJI’s top end. When to sell is when the price goes below the DOJI’s lower end
Hammer Pattern
Hammer is the sign of strength. Bullish variant. Hanging Man is negative indicator. Inverse of hammer. Bearish variant. Reliable, powerful and rarely appear.
Criteria
Hammer should appear only after significant price fall.