Candlestick Analysis Ravi

  • : Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyse a small portion, hence this can be used for weekly trading. A candlestick analysis is a technical analysis used to determine the price movement of the stocks.
  • : Candlestick analysis can be used for weekly forecasting, i.e buying and selling within the week time. Candlestick analysis is very effective for a weekly forecasting and it is very useful tool for the positional traders. Forecasting can be done for 4-5 days using the candlestick pattern.
  • : Weekly trader can use the candle stick analysis and the significant volume change plays a role in candlestick analysis, since there are reversal patterns. Candle stick analysis can be used by a positional trader.
  • : A bullish engulfing pattern occurs in the candlestick chart of a security when a large white candlestick fully engulfs the smaller black candlestick from the period before. This pattern usually occurs during a down trend and is thought to signal the beginning of a bullish trend in the security. 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.
  • : Increase in price trend observed for past few days. Latest Red body starts above the highest of previous day and covers more than 50% of previous day's body with significant volume. The lower tail is small in size. Increase in price trend observed for past few days. Latest Red body starts above the highest of previous day and covers more than 50% of previous day’s body with significant volume. The lower tail is small in size. When to Sell: When the price goes below previous day’s lowest Point(A). Stop Loss: Latest Red Body’s highest Price(B). Risk = A~B and Target = A+ Risk. Buying should happen at target or at stoploss (Price goes above B). Recent price fall trend observed & Latest Green body starts below the lowest of previous day and covers more than 50% of the previous day’s body with significant volume. The upper tail should be small.
  • : A doji candlestick forms when a security's open and close are virtually equal for the given time period and generally signals a reversal pattern for technical analysts. In Japanese, DOJI means blunder or mistake, referring to the rarity of having the open and close price be exactly the same. BUY IF THE REVERSED TREND IS BULLISH AT THE TOP OF THE DOJI (STOP LOSS AT THE BOTTOM OF THE DOJI) SELL IF THE REVERSED TREND IS BEARISH AT THE BOTTOM OF THE DOJI(STOP LOSS AT THE TOP OF THE DOJI.
  • : An Evening Star candle pattern is the same in form as the Morning Star pattern except that they occur at the top of price swings. It occurs at the end of daylight (a move up) and before dark (falling prices). Candlesticks can be great trading signals if used within a structured trading plan. 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 appers 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.
  • : The hanging man and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish reversal, it is a hammer. Any stock that moves in a particular direction has to halt and change direction at one stage, the hammer and hanging man helps in identifying the reversal movement of the stock which gives a clear buy or sell signal upon the reversal trend, thus making it a popular indicator.When A Hammer is formed after the downtrend with significant volume, we can expect for the trend reversal and once the market opens higher than the previous close we can create a long position.
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