V.VEDANAYAGAM

[V.VEDANAYAGAM]

DEAR SIR /MADAM
SORRY I again given my opinion regarding seq 2 in your chart

[V.VEDANAYAGAM]

DEAR SIR/MADAM
IN BEARISH PIERCING PATTERN the second day (red candle) must open only ABOVE the CLOSE of the previous day(green candle)candle.
Here the upper shadow ie high of the first day (green candle )candle will not come in to the analysis

[V.VEDANAYAGAM]

DEAR SIR /MADAM
Please avoid those engulfing patterns where the engulfed (first day candle )candle is a variation of DOJI
IN the chart the engulfed candle is a spinning top and so the pattern can be considered as morning star rather than hammer
HOWEVER the trade plan is common and can be successful

[V.VEDANAYAGAM]

DEAR SIR/MADAM
Trade plan is successful
However the hammer can be considered only if it is found AT THE BOTTOM of an existing DOWN TREND
IN the chart it is formed in the middle of an up trend of the scrip and hence cannot be taken into account

[V.VEDANAYAGAM]

DEAR SIR /MADAM
DOJI being a single day reversal pattern requires confirmation on the next day
IN the chart there is no confirmation and moreover the STOP LOSS point is reached on the next day it self
Hence we cannot rely on the pattern
NO DOUBT after the pattern some time the scrip will not move as per our analysis/expectation
but here the conditions for the reliability of the pattern itself are absent hence we can not make any decision about the DOJI

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