We can know by seeing hammer the way the market is going.
We should use candle sticks pattern to analyse intraday.
The general forecasting duration using candlestick analysis is a week or two..
- : Candlestick pattern is simple and powerful analytical method, Analysis required the basic understanding of demand and supply. It is discovered by Japanese later adopted by western.
- : The general forecasting duration in candlestick analysis is days to a week or a two.
- : short term traders who is ready to buy and hold the share for a week or two can use candlestick analysis as a tool. Volume plays a vital role in candlestick analysis and high volume signifies the strength of the signal.
- : It is pattern in candlestick analysis and it signifies the trend reversal. Conditions: The recent candle should cover the entire body of the previous candle The volume might be higher during the engulfing day but its not madotory The previous trend should be up of down not a sideways trend If it is bullish engulfing we can buy when the price going above the previous two candles high price We can set a stop loss at the lower of the two candles The target should be equal to the risk taken that is Risk reward ratio 1:1 If it is bearish engulfing we can sell at the low.
- : It is also a trend reversal pattern like engulfing. Conditions: The latest candle should cover the Lower tail and more than 50% of the previous candle There should be a trend prior to the formation of piercing pattern The volume should be high on the piercing day We can buy when a third candle forms and it moves above the previous two candles high price if it is a bullish piercing We can sell the share when the price goes below the last two candles low if it is bearish piercing.
- : It is a star shapped candle formation, the body of the candle is almost nil which means opening and closing price are almost equivalent which signifies the demand and supply is almost neutral in the market. It is useful if the prior trend should be upwards or downwards If the prior trend follows a sideways then it is not useful it is not a signal The volume should be high on the next day of doji formation.
- : Morning Star: Doji formation after a dark night that is down trend it signifies the trend reversal we can take long position if the volume supports the signal on next day of doji formation. We can buy if the price goes above the doji high We can take risk exposure normally 1.5 to 2 times of the risk in doji Evening Star: Doji formation after a Bright day that is up trend in the market which signifies the sell signal if it is supported by the volume on the next day. We can sell the share if the price goes below the doji low
- : It is a hammer shapped formation of candle the upper tail should be as a low as possible which should not be viewed by naked eye and the lower tail should be atleast three times of its body and hanging man is just a reverse of the hammer. It is strong reversal pattern if the volume supports the hammer of hanging man We can buy when the price croses the hammers top We can take risk exposure up to 1.5 to 2 times of the risk normally We can sell the share when the price goes below the hanging man's low Risk exposure is 1.5 to 2 times