Gave full and clear understanding on Candle stick analysis, DOHI, Hammer etc.
Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyse a small portion.
Yes, it's evaluation is real.
Candlestick analysis is very effective for a weekly forecasting and it is very useful tool for the positional traders.
Candlestick charts are used by traders to determine possible price movement based on past patterns.
Candle stick being a reversal pattern, Volume plays a key role in deciding the direction of the movement, we can confirm the reversal movement if and only there is a huge volume of stocks are traded.
A bullish engulfing pattern is a candlestick chart pattern that forms when a small black candlestick is followed the next day by a large white candlestick, the body of which completely overlaps or engulfs the body of the previous day's candlestick.
The body should cover the previous Day's low.
The current day body should cover at-least 50% of previous body.
The upper tail should not be very big.
When the price goes below previous day's lowest Point
A piercing pattern is a two-day, candlestick price pattern that marks a potential short-term reversal from a downward trend to an upward trend.
DOJI means neutral and it is a powerful and reliable candlestick pattern. DOJI appears after significant rise or fall in price with high volume.
Bullish and Bearish DOJI is called as morning and evening star by western.
From an auction theory perspective, doji represent indecision on the side of both buyers and sellers
Hammers have a small real body and a long lower shadow.
Hammers occur after a price decline.
The hammer candlestick shows sellers came into the market during the period but by the close the selling had been absorbed and buyers had pushed the price back to near the open.