This is first introduced by Japanese long back. It is very much useful for easily identifying demand and supply, accordingly trading decision can be taken.Trend Reversal can be easily identified basis candle stick pattern. Day candle is highly recommended as it is always reliable in line with daily volume.Candle stick analysis gives us clear picture of demand and supply and reversal point in trend with comparison of Volume Analysis.Engulfing Pattern is candle formed after a significant downtrend/uptrend. Conditions are below: 1) It covers full body of previous bearish candle. 2) Upper tail should not be long one. 3) Volume should be higher during this candle formation. 4) It should be bullish candle.Piercing pattern is formed rarely after significant downtrend or uptrend. Conditions: 1) It should cover half of the body of previous bearish candle. 2) Price start gap down, however covers the gap and half of body of previous candle. 3) Volume should be higher during this formation.Doji means neutral. Both Buyers and Sellers are equally fight each other. Formation of doji after a significant downtrend or uptrend with high volume can be considered. Doji formed during side way market is not a valid one to be considered.The Morning Star candlestick pattern is a reversal pattern in technical analysis. The pattern has three candles. It forms at the bottom of a downtrend. The first candle is always bearish candle and next two candles are bullish. Evening Star Pattern is straight opposite to this pattern.
Entry above third candle is for morning star and entry below third candle for evening star pattern. Stop loss is below of second candle for uptrend vice versa above second candle for downtrend position.

  • : This is first introduced by Japanese long back. It is very much useful for easily identifying demand and supply, accordingly trading decision can be taken.
  • : Trend Reversal can be easily identified basis candle stick pattern. Day candle is highly recommended as it is always reliable in line with daily volume.
  • : Candle stick analysis gives us clear picture of demand and supply and reversal point in trend with comparison of Volume Analysis.
  • : Engulfing Pattern is candle formed after a significant downtrend/uptrend. Conditions are below: 1) It covers full body of previous bearish candle. 2) Upper tail should not be long one. 3) Volume should be higher during this candle formation. 4) It should be bullish candle.
  • : Piercing pattern is formed rarely after significant downtrend or uptrend. Conditions: 1) It should cover half of the body of previous bearish candle. 2) Price start gap down, however covers the gap and half of body of previous candle. 3) Volume should be higher during this formation.
  • : Doji means neutral. Both Buyers and Sellers are equally fight each other. Formation of doji after a significant downtrend or uptrend with high volume can be considered. Doji formed during side way market is not a valid one to be considered.
  • : The Morning Star candlestick pattern is a reversal pattern in technical analysis. The pattern has three candles. It forms at the bottom of a downtrend. The first candle is always bearish candle and next two candles are bullish. Evening Star Pattern is straight opposite to this pattern. Entry above third candle is for morning star and entry below third candle for evening star pattern. Stop loss is below of second candle for uptrend vice versa above second candle for downtrend position.
  • : Hammer is one such candle pattern. If it is formed after a continuous downtrend with high volume, it is said to be most reliable trend reversal. Hence, it more popular among traders.
  • : Exact exit and entry points for Morning Star and Evening
1 Comment
  1. Naresh 3 years ago

    Hi,
    A morning doji indicates bullishness
    Buy above the high price of a doji
    Keep the low of the doji as the stoploss

    Evening doji indicates bearishness
    Sell below the low price of a doji
    Keep the high of the doji as the stoploss

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