Candlestick: Torēdā wa yorokobu

Candlestick analysis was first used by Japanese to trade rice. Introduced into the western world only since 1980’s. It helps short term traders to take trading decisions that might last upto a week. Engulfing pattern appears rather frequently compared to others. Piercing pattern acts a trend reversal pattern. Doji is a strong formation and appears after a significant rise or fall in prices. Doji after a side ways trend is considered insignificant. Hammer/hanging man displays strong buying/selling sentiment and is displayed by a long tail and small body. Volume acts as a trend confirmation