Candle stick pattern is very helpful to analyse the stock in more detailed view. Its mainly used to forecasting the stock in a week or months time. The following are the various candle stick pattern techniques are used for analysis:
1. Engulfing pattern
2. Piercing pattern
3. DOJI pattern
4. Hammer pattern

  • : Candle stick analysis is very helpful to analyse the market in more detailed view. Candle stick formed based on four inputs: Low price, Open price, Close price & High price. Its mainly used to know the stock in short term basics.
  • : Forecasting duration will be around a week or months time.
  • : Candle stick is mainly used for short term investor. Volume plays a major role to know how the Demand/Supply for a particular pattern.
  • : Engulfing pattern should be in recent fall or high in price and the latest body cover the previous day body. Condition: Slight increases in trading volume is expected. Buy: Recent fall in price, latest Bullish body cover the previous day bear body. Sell: Recent high in price, latest Bearish body cover the previous day bull body.
  • : Piercing patter should be in recent fall or high in price and the latest body cover the previous body more than 50%. Condition: Upper tail should be small in size. Buy: Recent fall in price, latest Bullish body cover the previous day bear body at least 50%. Sell: Recent high in price, latest Bearish body cover the previous day bull body atleast 50%
  • : DOJI patter should be in recent fall or high in price and the latest body open and close price will be almost same. Condition: High Volume indicates Trend reversal Buy: Recent fall in price, DOJI have high volume, positive DOJI have open and close price should be almost same. Sell: Recent high in price, DOJI have high volume, negative DOJI have open and close price should be almost same.
  • : The Morning Star candlestick pattern is a reversal pattern in technical analysis and the pattern has three candles which forms at the bottom of a downtrend. The first candle is any long and bearish candle. The second candle is a small and indecisive candlestick(Doji) and the third candle is any long and bullish candle. We can create a long position when the third candle opens higher than the previous close of the second candle(Doji) with good volume. The Evening Star candlestick pattern is also a reversal pattern in technical analysis and the pattern has three candles which forms at the top of a uptrend. The first candle is any long and bullish candle. The second candle is a small and indecisive candlestick(Doji). The third candle is any long and bearish candle. We can create a Short position when the third candle opens lower than the previous close of the second candle(Doji) with good
  • : Hammer patter should be in recent fall or high in price and the latest body upper tail should be invisible or very small in size and lower tail should be two times of its body size Condition: Volume should be high. Buy: Recent fall in price, positive hammer have upper tail small in size and lower tail have twice more than its body size. Sell: Recent high in price, negative hammer have lower tail small in size and upper tail have twice more than its body size.
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