Candle stick analysis can be used for short term trading, duration within a week. It must be a daily charts and not a weekly charts, because closing is not available in weekly charts.

Some of the patterns applicable are Engulfing pattern, pearsing pattern, Doji, Hammer or hanging man.

  • : Its oldest form form technical analysis introduced by Japanese, It can be used for short term trading, duration within a week. It must be a daily charts and not a weekly charts, because closing is not available in weekly charts.
  • : Around a week.
  • : Trading trying to make profit during very short term moments within a week, Volume plays a significant role in identifying trend reversal
  • : Its a trend reversal pattern. It appears very often. Bullish engulfing appears after a price fall. Price open way lower than the previous low and manage to cover entire previous candle. Volume is might or might not be high. On Bullish engulfing, buy at the top of latest 2 candles. Stop loss is set at lowest bottom of the 2 candles. Profit - Highest point of the 2 candles + risk taken
  • : Its a trend reversal pattern. It rarely appears. Price fall must be expected. Bullish candle body should completely cover the previous candles low, and the body should be at least manage to reach 50% mark of the previous candle and very small top is witnessed. volume should be high on piercing day If all the conditions are met, the create a long position on top of the previous candle. Stop loss is at bottom of the 2 candles. Expected profit is buy price + risk taken.
  • : Doji means neutral, stock opens and closed at the same level. Doji appears very rarely and its very powerful. Its a trend reversal pattern. If doji appears after a significant rally then its sign of price fall. If doji appears after a significant price fall then its a sign of price moving high. If doji appears during sideways movement then it must be ignored.
  • : Morning start is a bullish doji Evening star is a bearish doji When Price breaks out and goes higher above the upper tail then take a long position. When Price breaks out and goes below the bottom tail then take a short position. Volume should be very high during doji
  • : Its a price reversal pattern, it rarely appears. Duration is less than a week Its appears after significant price fall. Lower tail should be at least 2 times of the body.No to very small upper tail.High volume is expected.Hammer should be green in color. When the price break out above the upper tail, take a long position. Risk is up to the level of the bottom tail. Profit is 1.5 to 2 times of the risk. Hanging man is reversal of the hammer and its red is color, its sign of bearish trend.
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