Candlestick analysis is the Japanese way of understanding demand and supply and adopted later by western. Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyses a small portion, hence this can be used for weekly trading.

  • : Candlestick analysis is the Japanese way of understanding demand and supply and adopted later by western. Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyses a small portion, hence this can be used for weekly trading.
  • : Candlestick analysis is very effective for a weekly forecasting.
  • : Weekly trader can use the candle stick analysis and the significant volume change plays a role in candlestick analysis, since there are reversal patterns.
  • : In the candlestick view, after significant rise or fall, when the previous day body is completely covered by today's body with the reversal colour and significant volume, then it can be identified as engulfing pattern. Bullish: It is a reversal pattern after a recent price fall. The green body of the engulfing pattern should cover the entire previous day body. Increase in the volume is expected. Buy: when the price goes above the previous high and stop loss when it goes below the previous low. reward = risk taken. Bearish: It is a reversal pattern after a recent increase in price. The red body of the engulfing pattern should cover the entire previous day body. Increase in the volume is expected. Sell: when the price goes below the previous low and stop loss above the previous high.
  • : Piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. The pattern is made of two candle-lines, the first candle is bearish in nature and the second is bullish in nature. Bullish: Reversal pattern after a recent price fall. The price opens low and manage to move up covering the 50% of the previous day body and the upper tail should be small. Slight volume difference is expected. Buy: When it crosses previous high and stop loss will be the days low. Reward will be the amount of risk taken. Bearish: Reversal pattern after a recent increase in price. The price opens high and manage to move up covering the 50% of the previous day body and the lower tail should be small. Slight volume difference is expected. Sell: When it crosses previous low and stop loss will be the days high. Reward will be the amount of risk taken.
  • : Doji is a candlestick pattern that looks like a cross as the opening price and the closing prices are equal or almost the same. When looked at in isolation, a Doji indicates that neither the buyers nor sellers are gaining – it's a sign of indecision. DOJI is the indication of reversal trend and can be used for creating long/short position based on whether it is bullish or bearish.
  • : Morning star – appearance of doji after a price fall which is a bullish trend. volume should be high. morning star appears after a dark night but gives a bright day. buy after the price crosses the highest price of the previous day. target is a+ 2 times of risk. Evening star – evening star is when after a bright day a star appears and then doji is seen which means negative things happen. buy after the price crosses the highest price of the previous day. target is a+ 2 times of risk.
  • : Hammer: It is a reversal trend with the recent price fall. Hammer lower tail should be two times of its body size and the upper tail should be invisible. Green in colour with a high volume indicates bullish movement. Buy when the price exceeds the days high and stop loss below the days low. Hanging man: It is a reversal trend with the recent increase in price. Hanging man upper tail should be two times of its body size and the lower tail should be invisible. Red in colour with a high volume indicates bearish movement. Sell when the price goes below the days low and stop loss above the days high.
1 Comment
  1. Naresh 7 months ago

    Excellent work…We really appreciate your consistency

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