Candle stick analysis is simple and powerful analysis used for weekly and short term trading, From past 200 years Japanese are using this analysis for trading rice and now it moves to western countries for most of the trading.
Engulfing pattern is considered when there is continuous down or up and the next day candle should cover whole body of previous trading stick. Trading should be done when the price reaches the highest point of engulfing candles and stop loss should keep at end price of the engulfing candles.If it is continuous after engulf lowest point should be taken.
Piercing pattern is considered when there is recent downfall and the next day candle should start lower than previous and should cover the half of the previous candle with small tail in volume should be moderate. Then long should be created at the highest price of previous candle and stop loss should be at the end of piercing candle. Same will be vice versa for in reversal trend.
DOJI is considered when there is a recent downfall the next day the opening closing of the market happens at the same price then it is called as bullish doji and long position is created highest price of the doji stick and stop loss should be lowest tip of doji stick. Same for recent price growth but vice versa.
Morning Star is the bullish DOJI when the star is formed after the continuous downfall and the long position should be created at the highest price of morning star and stop loss at lowest price of the candle and vice versa during evening star.
Hammer is a bullish variant and hanging man is a bearish variant, Hammer consider when there continuous down fall if next day candle with long tail twice the size of body and head

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