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.

  • : candlesticks is Japanese way of identifying demand and supply. it was been practised in japan more than 200 yrs ago which was later been taken over by the western people. its simple and powerful method to analyse. 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.
  • : candlesticks are used to forecast within a week
  • : Weekly trader can use the candle stick analysis and the significant volume change plays a role in candlestick analysis, since there are reversal patterns
  • : In the candlestick view, after significant rise or fall, when the previous day body is completely covered by today’s body with the reversal color and significant volume, then it can be identified as engulfing pattern. Condition to quality Bearish engulfing: Increase in price trend observed for past few days & Latest Red body is covering the previous day green body with significant trading volume. When to Sell: Create short position when the price goes below latest red body’s lowest price(A). Condition for bullish engulfing: Fall in price trend for few days observed & Latest green body is covering previous red body with significant volume. When to Buy: Create long position when the price goes above latest green body’s highest price
  • : Piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. The pattern is made of two candle-lines, the first candle is bearish in nature and the second is bullish in nature. Conditions to Qualify is as below : 1. The body should cover the previous Day’s low. 2. The current day body should cover at-least 50% of previous body. 3. The upper tail should not be very big. We can create a long position if the body covers more than 50% of the previous days bearish candle, provided a significant volume is noticed during the formation of piercing pattern.
  • : 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. We can create a long position when the third candle opens higher than the previous close of the second candle(Doji) with good volume. 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. We can create a Short position when the third candle opens lower than the previous close of the second candle(Doji) with good volume.
  • : The hanging man and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish reversal, it is a hammer. When A Hammer is formed after the downtrend with significant volume, we can expect for the trend reversal and once the market opens higher than the previous close we can create a long position. When A Hanging man is formed after the uptrend with significant volume, we can expect for the trend reversal and once the market opens lower than the previous close we can create a short position.
1 Comment
  1. Naresh 6 months ago

    Hi,
    Thank you for sharing the detailed information with us…..

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