The Canddle stick patterns are Japnese invented analysis used to trade rice back 2 centuries . The candle stick analysis is very useful for short time traders like intraday / weekly . There are many canle stick patterns but very imp are Engulfing, Pierecing, Doji, Morning star, evening star, Hammer , hanging man.
Engulfing pattern is entire covering including tail of the previous candle
( opposite colour) .
Piercing pattern is similar to engulfing but short of covering entire candle .
Doji is a neutral candlestik the doji signifies trend reversal .
Morning star and Evening star are nothing but Bullish doji and Bearish doji respectively. If the market is bearish and continously falling and a doji appears with big volume follwed by opposite candle then it indicates the buyer are in action and trend changes this is called as bullish Doji. This is viceversa for bearish Doji .
The Hammer is bullish candle with a long tail with no shadow at the top of candle, it appears after bearish trend followed by volume support. It is measure of starting a Bullish trend/ rallay . Where as the hanging man is also a hammer shape but bearish colour code , it appears at the top of bullish trend.
, , Candlestick Analysis, doji, Engulfing, evening star, hammer, hanging man., morning star, Pierecing
