Candle stick -Analysis

A candlestick analysis is a technical analysis used to determine the price movement of the stocks/securities.
Candlestick charts have been developed in the 18th century by Munehisa Homma, Japanese rice trader of financial instruments.
Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow (wick): the area between the open and the close is called the real body, price excursions above and below the real body are called shadows. The wick illustrates the highest and lowest traded prices of a security during the time interval represented.he body illustrates the opening and closing trades.
It is very effective as a daily basis and also more effective in weekly basis
Candlestick analysis is very effective for a weekly forecasting and it is very useful tool for the positional traders.
Candle stick analysis can be used by a position trader. Candle stick being a reversal pattern, Volume plays a key role in deciding the direction of the movement, we can confirm the reversal movement if and only there is a huge volume of stocks are trad
In the candlestick view, after significant rise or fall, when the previous day body is completely covered by today’s body with the reversal colour and significant volume. Bearish engulfing:Increase in price trend observed for past few days & Latest Red body is covering the previous day green body with significant trading volume.
Piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. The pattern is made of two candle-lines, the first candle is bearish in nature and the second is bullish in nature.
The Doji is a commonly found pattern in a candlestick chart,it is characterized by being small in length—i.e,a small trading range, with an opening and closing price that are virtually equal.