A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. Evaluation using candlestick is more effective to predict for a short term like a weeks time.

  • : A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. Evaluation using candlestick is more effective to predict for a short term like a weeks time.
  • : candlesticks are used to forecast within a week
  • : Weekly trader can use the candle stick analysis and the significant volume change plays a role in candlestick analysis, since there are reversal patterns.
  • : An engulfing pattern is formed by using two candles, with the first candle “engulfed” by the second candle on the chart. The latest bullish body should cover the previous day's bear body. bullish engulfing – latest green body should cover the previous days red body completely, trading volume might increase, the bullish engulfing should appear after a price fall. buy when you see the price crossing the engulfing days high, profit will be risk taken. bearish engulfing – red body should cover the previous days green body completely, trading volume might increase, the bearish engulfing should appear after a rise in prices, sell when the prices crosses the previous days low.
  • : A piercing pattern is a two-day, candlestick price pattern that marks a potential short-term reversal from a downward trend to an upward trend. The body should cover the previous day's low i.e. at least 50% mark of previous body. The upper tail should be small in size.
  • : A doji candlestick is formed when the market opens and bullish traders push prices up while bearish traders reject the higher price and push it back down. DOJI is the indication of reversal trend and can be used for creating long/short position based on whether it is bullish or bearish.
  • : Morning star is a bullish pattern which occurs at the bottom end of the trend. The evening star is a bearish pattern, which occurs at the top end of an uptrend. Morning Star: When to buy: Long position can be created when the price goes above the highest price of star(A) and stoploss is the lowest price of the star(B). Risk = A~B and Target: A+(1.5 or 2 times of risk). Selling should happen at the target or stoploss( price goes below B). Evening Star: When to Sell: Short position can be created when the price goes below the lowest of the star(A) and stop loss is the highest price of the star(B). Risk = A~B and target :A+(1.5 or 2 times of risk). Selling should happen at the target or at stop loss(Price goes above B)
  • : Hammer: It is a reversal trend with the recent price fall. Hammer lower tail should be two times of its body size and the upper tail should be invisible. Green in colour with a high volume indicates bullish movement. Buy when the price exceeds the days high and stop loss below the days low. Hanging man: It is a reversal trend with the recent increase in price. Hanging man upper tail should be two times of its body size and the lower tail should be invisible. Red in colour with a high volume indicates bearish movement. Sell when the price goes below the days low and stop loss above the days high.
1 Comment
  1. Naresh 6 months ago

    Hi,
    Thanks for Crystal Clear Explanation… You did that very well

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