Candle stick analysis is a key tool in Technical Analysis, its a graphical representation of price movement .the bearish/ bullish movement can be easily identified by its colour code Red / green.
It indicates opening price, day’s high and low, closing price and its very effective analysis for short term analysis and intra day . Even the slight increases in trading volume indicates trend reversal.
Bullish Engulfing :
This pattern is characterized by a large Bull body engulfing a preceding smaller Bear body, which appears during a down trend.
Volume should be high .
Entry level : buy the share at the highest point of the tail of two candles.
Exit level : sell at the lowest point of the tail of two candles.
Bearish Engulfing :
This pattern is characterized by a large Bear body engulfing a preceding smaller Bull body, which appears during an upward trend
Sell/Stop Loss Level
Sell/short : Last candle Close price
Stop Loss : Last candle High Price
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Piercing Pattern: Bullish
A bear candlestick appears on the day 1 while a down trend is in progress. The second day opens at a new low, with a gap down and closes more than 50% into the prior bear body, leading to the formation of a strong bull candlestick.
Buy: During Bullish Reversal and Sell: Bearish Reversal
DOJI means neutral, the price remains the same while open and close of the day, early indication of price reversal. The trader should wait and it looks like a star.
Long – Morning star and Short – Evening Star
Hammer / Hanging Man
Buy : Hammer Close price
Stop Loss : Hammer Low Price
Sell : Hanging Mid point
Stop Loss : Hanging Open price