candle stick analysis- bullish/ bearish engulfing = strong buyers presence, bullish/ bearish piercing= it also indicates strong buyers presence, doji-morning star/evening star, hammer/hanging man.
- : it is a simple and powerful technical analysis, which was discovered by Japanese and followed by western people later. it is very useful for weekly traders.
- : 1 week
- : weekly traders can use candle stick analysis. it is not meant for intraday traders. generally, the volume of trade may be high on bearish engulfing or bullish piercing pattern. but high volume is not mandatory.
- : in a week-long bearish trend, day before yesterday's candlestick red body should be covered fully by the previous day green candlestick. conditions: 1. recent fall in price. 2. the last day bullish body should cover the previous day bearish body. 3. slight increase in trading volume is expected in the past 2 day. (Not mandatory). then we should go for long. buy- at the point where the price crosses the previous bullish candlestick head. stop loss/sell- at the tail of the previous bullish candlestick.
- : previous day red body candlestick should be covered 50% by today's body. it tells the reversal trend. gives us the positive outlook of the upcoming week to be bullish along with some increase in volume. conditions: 1. the body should cover previous day's LOW. 2.today's body should cover at-least 50%of previous body. 3. today's upper tail should be small in size. buy- when the price crosses the last 2 day's highest upper tail. sell/ stop loss- lower tail of the last day.
- : DOJI means neutral. it is the price opening and ending at the same point in a falling price trend of a week. it tells us the reversal trend which is going to happen with high volume on doji day. we can keep our target for 1.5 times or 2 times of the risk take
- : morning star is the DOGI happening after a week-long falling price (dull night). morning star indicates the strong bullish trend with high volume on the doji day. sideway doji doesn't indicate anything. morning star buy- above doji day high. sell/ stop loss- at doji day low. evening star is the doji happening after bright day. i.e. a doji happen after a positive high price trend/ bullish trend. it tells us about the upcoming price fall/ bearish trend.
- : hammer- it looks like a real hammer like appearance. occurrence is rare. but when they appear, they are more powerful and reliable. conditions: 1. lower tail of hammer should be minimum 2 times of its body size. 2. hammer should be green in color. (Hanging man should be in red color) 3. the upper tail should be invisible or very small in size. 4. volume should be high during the hammer day. 5. hammer should happen during the recent fall in price trend of a week/ more than 3-4days. buy- above the head of the hammer. sell/ stop loss- at the tail of the hammer price. target can be kept 1.5 - 2 times the risk taken between the entry and stop loss. hammer tells us about the strong bullish trend while hanging man tells the vice versa.