It is oldest form of technical analysis for trading for a weekly basis. Understand demand and supply provide short term trade.
A candlestick is a chart that displays the high, low, opening and closing prices of a security for a specific period. The wide part of the candlestick is called the “real body” and tells investors whether the closing price was higher or lower than the opening price.
When stocks close at the bottom of the range we conclude that the sellers are in control. When stocks close at the top of the range we conclude that buyers are in control.
Engulfing means covering the previous day body. Appears often in the trend. Indicates reversal pattern. Bullish engulfing pattern, trading volume may be high and the body should cover the previous day body. It should appear after price fall. It indicates buying is happening. Possible for trend reversal
Previous days decrease in trend. Appears rarely. It indicates a trend reversal. Green body should cover the previous day low. Bull body should cover atleast 50% of the previous day and upper tail should be small in size and volume on piercing day. Create long position if the price goes above the last 2 days high.
DOJI means neutral. Appearance after a price fall is a bullish signal. Volume to be high. Indicates trend reversal. DOJI after sideways means no significance
Morning star indicates a buy signal and evening star indicates a sell signal
Hammer is a sign of strength. Positive indication. Bullish variant. Hammer should appear after a significant price fall, it indicates a trend reversal. Lower tail should be 2 times of the body length and upper nail almost invisible. It should be green in colour, create a long position
