Revision of CANDLESTICKS ANALYSIS

candlesticks is Japanese way of identifying demand and supply. when compared to any other charts candlesticks provide us more information. accounts few days to study and provides a short term trend ie weekly basis. Weekly trader can use the candle stick analysis and the significant volume change plays a role in candlestick analysis, since there are reversal patterns. engulfing pattern is simple and reliable pattern, its reversal pattern good for weekly trades.
bullish engulfing – latest green body should cover the previous days red body completely, with increase in trade volume
bearish engulfing – red body should cover the previous days green body completely, trading volume might increase.
DOJI means neutral and it is a powerful and reliable candlestick pattern. DOJI appears after significant rise or fall in price with high volume. This candlestick pattern will be in the form of star, where the starting and ending price of the day is almost the same. DOJI is the indication of reversal trend and can be used for creating long/short position based on whether it is bullish or bearish.
The Morning Star candlestick pattern is a reversal pattern in technical analysis and the pattern has three candles which forms at the bottom of a downtrend. The first candle is any long and bearish candle. The second candle is a small and indecisive candlestick(Doji) and the third candle is any long and bullish candle.
The Evening Star candlestick pattern is also a reversal pattern in technical analysis and the pattern has three candles which forms at the top of a uptrend. The first candle is any long and bullish candle. The second candle is a small and indecisive candlestick(Doji). The third candle is any long and bearish candle.The hanging man and the hammer are both candlestick patterns that indicate trend reversal.