Candlestick is powerful tool for people who would like buy and sell within a weeks time. It is been used by the Japanese for a very long time during the rice trading. Engulfing, piercing, Doji hammer are various patterns, which can be used to trade successfully.
- : Candle Stick Analysis was found by the Japanese and its currently adopted by the western. In a single candlestick we can get to know the high and low of the day and the opening and closing price of the stock. Candle stick can be used for day analysis
- : candlestick analysis are not good for intraday but can be used for people who want buy stock and sell it within a week.
- : volume plays a major part in the dow theory
- : when a previous day red candlestick is engulfed by the present green candlestick it is called engulfing and it is bullish in nature. Vice versa for the Bearish. Bullish engulfing happens after a price fall. buying above the highest point and selling below the lowest point.
- : indication of reversal pattern and good for weekly trades. the latest green body should cover the previous days low. bull body should cover atleast 50% of previous day low. upper tail must be small and volume may increase.
- : Doji in Japanese is neutral. it can be used to make long or short positions and it is quite powerful
- : thin body and star shaped candle is the indication of Doji. It appears after a significant fall. volume will be high. u can buy the price goes above the opening price of the previous day and stop loss can be kept at the closing price of the previous day and target might reach 1.5 times to 2 times.
- : hammer is a bullish variant and hanging man is a bearish variant. it occurs very rarely but when occurs it is very powerful.
- : What is the role of volume in candlestick analysis?