Candle Stick – The Light of Weekly Traders

Candle Stick analysis is one type of technical analysis. It is discovered by Japanese 200 years ago to trade rice and later adopted by Western Stock traders. Forecasting duration of Candle stick analysis is for a shorter term and usually about a week.Traders who trade weekly should use Candle Stick analysis. The role of volume in Candle stick analysis is insignificant.The body of candle stick covering the whole body of previous day candle stick is called Engulfing. It can be Bullish and Bearish.
Long position to be taken at Highest point of two days of Bullish engulfing. Piercing pattern This is candle stick pattern indication of trend reversal.
The latest Green body should cover the previous day’s low.
The Bull body should cover at least 50% of the previous day’s body.
The Upper tail should be small in size. Volume may increase.DOJI means neutral and it is a powerful and reliable candlestick pattern. DOJI appears after significant rise or fall in price with high volume. This candlestick pattern will be in the form of star, where the starting and ending price of the day is almost the same. DOJI is the indication of reversal trend and can be used for creating long/short position based on whether it is bullish or bearish. This is candle stick pattern indication of trend reversal.
The latest Green body should cover the previous day’s low.
The Bull body should cover at least 50% of the previous day’s body.
The Upper tail should be small in size. Volume may increase.