Step 7

Candlestick analysis is the Japanese way of understanding demand and supply and adopted later by western. Candlestick analysis provides short term trend analysis and studies in detail based on the daily candlesticks patterns and analyse a small portion, hence this can be used for weekly trading.
Intraday traders will candlesticks analysis. Candle stick analysis can be used by a position trader. 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
Engulfing candlestick patterns takes two candlesticks to be identified. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body
Piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. It is a complex pattern made of two candlelines. The first candle is bearish in nature and the second is bullish in nature. It has its name because the prices pierces up through the falling market.
A doji is a name for a session in which the candlestick for a security has an open and close that are virtually equal and are often components in patterns. Doji candlesticks look like a cross, inverted cross or plus sign. Alone, doji are neutral patterns that are also featured in a number of important patterns
Bullish and Bearish DOJI is called as morning and evening star by western. the star should be seen after rally and not at sideways.
A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The hanging man is characterized by a small “body”