Candle stick is often considered for short time swings analysis that determine the price pattern of stock market by understanding demand and supply
- : Candle stick is often considered for short time swings analysis that determine the price pattern of stock market by understanding demand and supply
- : The duration for candle sticks analysis is generally within days to a week.
- : Short term traders use candle stick analysis.High volume indicates the strength of the market.
- : The latest body should cover the previous day entire body.The volume should be high during engulfing day.Long position is considered when the price goes above the two previous candles and short if the price goes below the two previous candles.
- : The latest body should cover atleast 50% mark of previous body with high volume.The upper tail should be small in size. Long position is considered when the latest candle forms above the previous candles and viceversa for short position.
- : The dojo with high volume indicates trend reversal.The dojo is often a candle with very small body. Dojo after a consistent rally/fall indicates temporary pause.
- : The morning and evening star are often considered important reversal signals The morning star is a bullish candlestick pattern in price and evening star a viceversa.
- : Hammer candle is a bullish pattern in price that is green in color .The hammer tail should be min two times of its body size and the upper tail should tail should be very small or invisible.The vloume should be high during hammer day.Long position is considered. Hanging candle is a bearish pattern in price that is red in color .The hanging head should be min two times of its body size and the lower tail should be very small or invisible.The volume should be low during hanging day.Short position is considered