In this study of candle stick analysis it shows the significance of the candle and types of candle their patterns evaluation and conditions for buying and selling it helps to more understanding of the trend reversal and price patterns of the market conditions helps to forecast the market and follow the market

  • : Candle sticks is the japanese form of analysis this is the oldest form of analysis this is simple and powerful analytical method it requires the basic understanding of demand and supply recommended for weekly traders and day candle is required
  • : For general forecasting of candle stick duration requires a duration of 2-3 months and basic understanding of demand and supply required and day candle is required for analysis
  • : candle stick analysis is used for short term or intraday trading the role of volume in candle stick resembles the no of buyers and seller based on the demand and supply recommended for weekly traders engulfing pattern ios covering the previoous pattern
  • : engulfing pattern is the reliable pattern is covering the previous body it appears very frequently , its a reversal pattern and its powerful reversal pattern are good for weekly traders criteria : Latest green body should cover the previous red body trading volume might increase during the engulfing day Bullish engulfing should appear after the price fall During engulfing recent price fall is witnessed and buy above the point A and sell at point B where
  • : The piercing pattern it appears rarely indicating the trend reversal this followed by engulfing pattern because it rejects the bottoms and tops criteria: green body should cover the previous day low should cover atleast 50% of the previous day low upper tail should be small in size and volume may increase shows the selling pressure Market should be in down trend and direction should be long and buy the stock at previous day high and stop loss should be previous day low
  • : Doji is small and its powerful it means its neutral and it looks like a star appearance of doji after a price fall it is bullish doji and volume should be high during the doji days and indicates the trend reversal but Doji after side ways may not indicate anything
  • : Morning star appears after a dark night gives you the bright day that shows a positive trend Evening star after a bright day star appears the negative movement appears should have price fall and volume should be high and expected direction should be long buy on next day price high and target should be previous day opening price asnd stop loss should be at the same day low
  • : Hammer is sign of strength and hanging man is inverted Hammer and negative and its is bullish and bearish hammer should appear after a price fall and hammer shows the trend reversal lower tail should be 2 times more of the body size with no upper tail and should be green in color and high trading volume is expected ensures the day closes in high price Hammer- long direction next day of the previous day hammer and stop loss at the same day low
2 Comments
  1. Naresh 3 months ago

    Hi,
    Good exercises… Keep up the great work.

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