Dow is used for a trend analysis for 2-3 months , but candle stick analysis is used for a weekly trend analysis. have also learned about the engulfing pattern , Doji, Piercing pattern, etc.
- : Probably the oldest form of technical analysis wherein the representation gives the details of opening , closing , day high and day low price values. The application is used for trading on weekly basics. it helps , if we need to examine what has happened within a particular top and bottom.
- : It is used for studying short term buying and selling , like a few days (3-4 days eg.) . Which means it is good for a weekly trader. This is because, for longer periods , the trend will not be even visible. it is also not good for intraday trading also because the prices are not closed.
- : Candle stick analysis is normally used for weekly trading. The volumes are not that important or mandatory ( unlike Dow) though it can be used for the analysis .
- : This reversal pattern means , covering the previous body pattern . A Bullish engulfing patter means when the latest green body (bullish body) covers the previous red body (bearish body) and the volume might increase ( not necessarily). here the direction should be long . If the price goes above the highest point , the we can buy. A Bearish engulfing happen when a bearish body covers a previous bullish body to start a new downward trend. Selling can be done when the prices are lower than the previous days lowest point.
- : It is a trend reversal pattern which appears rarely ( good for weekly traders). In this (bullish piercing) the latest green body should cover the previous day low ,this bull body should also cover at-least 50% of the previous day and the upper tail is small in size accompanied by volume increase in the piercing day. For bullish piercing , the direction is long and buying can be done if the price goes above the previous day's highest value.
- : Doji means neutral. it is also a price reversal trend wherein the opening and the closing is at the same level , creating a small candle or star shape ( no body). If we have a Doji , we can set the target considering 2 or 1.5 times the risk taken .
- : morning star (bullish Doji) - Appearance of DOJI after a significant price fall may be due to lack of selling or new buying.the star shape or small body accompanied by high volume which indicates trend reversal. but DOJI after sideways should not be considered. the direction should be long. buying to be done if on the next day if the price goes high above the Doji day high . Stop loss at Doji day low point. Evening Star ( Bearish Doji) -Appearance of DOJI after a significant price increase may be due to lack of buying or new selling.the star shape or small body accompanied by high volume which indicates trend reversal. but DOJI after sideways should not be considered. the direction should be short. selling to be done if on the next day if the price goes below the Doji day low .
- : Hammer is a sign of strength ( bullish variant). It is expected to happen after a significant price fall (3 - 4 days). Lower tail should be min 2 times of the body size with no upper tail . body should be green and high trading volume ( hammer with red may not be a powerful one, to be neglected). buying can be done on the next day when the price goes above the hammer day high. stop loss should be at the lowermost point of the hammerday. target can be 2 times the risk taken. Hanging man-is a sign of weak trend ( bearish variant). It is expected to happen after a significant price increase (3 - 4 days). Upper tail should be min 2 times of the body size with no lower tail . body should be Red and high trading volume ( hanging man with green may not be a powerful one, to be neglected). selling can be done on the next day when the price goes below the hanging day low. stop loss should be at the highest point of the hangingday. target can be 2 times the risk taken. this is to be used for within a week.
- : hammer video , slide 4.21 sec says morning star