Here you can find the details about various candlestick pattern, a japanese analytical technique later adopted by western to predict the price movement for short term. It’s mostly used by weekly traders to perform short term trade. They predominately use candlestick patterns like engulfing, piercing, DOJI, hammer.
Engulfing – seen after a significant fall – latest body of candle should cover the body of previous day candle – indicates trend reversal from bearish to bullish.
Piercing – seen after a significant fall – latest body of the candle should have the lower tail and greater than or equal to 50% of body of previous day candle – indicates trend reversal from bearish to bullish.
DOJI – seen after a significant fall – starting price and ending price of DOJI will be same or minimal difference is seen – indicates trend reversal
Hammer – seen after a significant fall – lower tail of the hammer should be two times the body of the hammer. Upper tail will be or will not be present. It also indicates trend reversal.
For all the above patterns, you may see huge volume on the pattern day and its very previous days.
