In this section learnt about the various candlestick patterns.
- : Candlestick pattern is evolved from Japan and can be very use full in analyzing short term trend.
- : one Day
- : For weekly traders. Not important for engulfing but for piercing & Doji it is must.
- : For bullish engulfing, the previous trend should be down trend and the body of red candle should be completely covered by the green bullish candle. vice versa for Bearish engulfing. Buy above the high of the engulfing candle and sell below the low of the engulfing candle.
- : Piercing pattern covers the previous candle low and more than 50% of the body . the upper tail in case of bullish piercing should be very low. Buy above the high of last two days. Sell below the low of last two days candle.
- : doji is a neutral candle. In a trending market it decideds the direction of the market after this point.
- : Moring star is nothing but a doji formed in a down trend & evening star is the doji formed in up trend. Buy above doji high & sell below the doji low
- : Hammer is a candlestick pattern with small body and long tail. Hanging man is the inverted type of hammer. Hammer appears in down trend indicating the bullish reversal. Hanging man is appears in the up trend and indicates a possible bearish movement. Buy above the high of the hammer and sell below the low.