Candlestick analysis is the japanese way of understanding the demand and supply. It is used to identify the short term trend.
It is simple and powerful analysis and oldest form of analysis.

  • Candlestick analysis is the japanese way of understanding the demand and supply. It is used to identify the short term trend.
    It is simple and powerful analysis and oldest form of analysis.

  • The general forecasting duration is recommended for weekly traders.

  • Volume is major role in candlestick analysis. weekly trader the candlestick is more powerful.

  • Engulfing pattern is pattern covering the previous body. It can be bullish engulfing/ bearish engulfing.
    Condition
    1) Latest body should cover the previous body
    2) Trading volume might increase during engulfing day
    3) bullish engulfing should appear after a price fall and bearish engulfing should appear after a price rise.
    Bullish engulfing
    * Direction - Long
    Buy - last candle high
    Target - Risk taken
    Stop loss - Last candle low

  • Piercing pattern is pattern covering the previous body by 50%. It indicated the trend reversal. It is very rare to appear
    Condition
    1) Latest green body should cover the previous day loq
    2) Bull body should cover 50% of previous day
    3) The upper tail should be small in size and volume should be increasing
    when to buy/sell
    * Direction - Long
    Buy - previous day high
    Target - Risk taken
    Stop loss - Last candle low

  • DOJI means Neutral. In DOJI open and close are same. Good DOJI appear rarely but very powerful. Appearance of DOJI after a significant price fall. volume should be high during DOJI days indicate the trend reversal. DOJI after a side way trend may not indicate anything.

  • Morning Star - Appear after a dark night, but gives a bright day that show a positive.
    Evening Star - Appear after a bright day, but gives a dark night that show a negative
    Direction - long
    Buy - Breakout of DOJI
    target - 2 times risk taken or at-least 1.5 time.

  • Reliable, powerful and rarely appear.
    Hammer is a sign of strength in bullish variant. Hammer should appear only after a significant price fall. Lower tail should be minimum 2 times of the body size with no upper tail. Body should be green in color and volume should be high.
    Direction - Long
    Target - 2 or 1.5 time risk taken
    Buy - Breakout of previous candle.

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