For the bearish engulfing pattern, there are 3 criteria:
1. Market has to be an in an uptrend. The VRL price was in an uptrend until it reached its high and then the bearish engulfing pattern formed.
2. The second body of the pattern must engulf the prior real body. Here, both the engulfing patterns marked in the chart, display these characteristics.
3. The...
1.Bullish Engulfing : The first candlestick is a red one, and the second is green. A green one “engulfs” the red one because the body has a lower opening price and a higher closing price
2. Evening Star : You need three candlesticks to see this Evening Star pattern, a green candle with a long body, a short green or red candle, and a red candlestick.
3. Dark...
Pattern name: Bearish Engulfing
Pattern Type : Bearish Reversal
No. of Candles : 02
How to Identify it ?
1)There must be a preceding Uptrend.
2)A short Green candle followed by a long Red candle.
3)The Red candle should opens higher & closes lower than the Green candle.
4)The Green candle should be completely engulfed by the Red candle.
Psychology...
What is the Shooting Star candlestick pattern?
A shooting star candlestick pattern is a chart formation that occurs when an asset’s market price is pushed up quite significantly, but then rejected and closed near the open price. This creates a long upper wick, a small lower wick and a small body.
The upper wick must take up at least half of the length of the...
Pattern: Bearish Reversal
1) There must be a prior uptrend.
2) Price opens above previous day close/high and makes a high higher than previous day.
3) The Red candle closes below previous day open/low
Trading this pattern
1) Look for this pattern after a big upmove.
2) Upon confirmation, open a short position on 3rd candle.
3) Place a stoploss above the high of...
Pattern Name: Bullish Engulfing
Pattern Type: Bullish Reversal
No. of Candles: 02
How to Identify it?
1)There must be a preceding Downtrend.
2)A short Red candle followed by a long green candle.
3)The Green candle should open lower & closes higher than the Red candle.
4) The Green candle should completely engulf the Red candle.
The psychology behind it :
1)The...
Pattern name: Bullish Engulfing
Pattern Type : Bullish Reversal
No. of Candles : 02
How to Identify it ?
1)There must be a preceding Downtrend.
2)A short Red candle followed by a long Green candle.
3)The Green candle should opens lower & closes higher than the Red candle.
4)The Red candle should be completely engulfed by the Green candle.
Psychology behind...
-> Definition of Inside Candle
As the name suggests, an inside bar chart pattern engulfs the inside of a large candle, some call it a mother bar. It’s a pattern that forms after a large move in the market and represents a period of consolidation.
The inside bar pattern can be a very powerful price action signal if you understand how to trade it...
As you read from image description that's pretty much all there is to learn on this pattern.
Thomas Bulkowski in his book "Encyclopaedia of Candlestick Charts" mentions that this pattern predicts higher prices with an 83% accuracy rate.
Do you Remember Nirmala Sitaraman Candle?
Yes that's three line strike which was formed after budget was announced on 1st Feb...
In this analysis we'll look how the Professional Trader explore the chart before executing their Trade.
Demand Zone -
Fib Retracement -
Candlesticks -
Divergence - Divergence warns that the current trend is getting weakening and it might possible that the trend get changed in up coming session.
Volume Profile - POC - Point Of...
Post covid IDFC FIRST has been moving up in an impulsive manner.Impulsive move advance's price in 5 waves of which 1,3 and 5 are in the direction of primary trend and 2 and 4 are counter trending.
Elliot wave Patterns discussed in this chart and it's rules.
*Elliot wave impulse pattern and rules:
#Impulse pattern
1)Wave 2 doesnt retrace wave 1...
The human Behaviour in Relation to money is always dominated by fear, greed and hope.
Candlestick analysis will help us to understand these changing psychological factors by showing us how buyers and sellers interact with each others.
1) It is considered as a visual representation of what is going on in the market.
2) By looking at candlesticks, we can get...
Dow has created Island reversal Candle stick pattern on its daily charts. This pattern suggest that the down trend will continue and bulls are trapped. As mentioned in the previous tutorials, 34100 is extremely crucial level for Dow . Closing below this may form a head and shoulder trend reversal pattern which will be much more worse than this pattern....
1] When Price is Open=high and also below pivot level, and rejected from previous day close .
2]Also broke Previous day low with strong candle - Indicates (bear are strong) bearish view and can go aggressively bear side.
3] When price gets rejected from previous day close , it stay bear side and less chance of reversal (week Bull) when it break...
I tried putting Elliot wave label on Asian paint daily,weekly and monthly chart and couldn't come to any logical conclusion,as the uptrend didnt followed any fib rule's neither did any major swing have an internal structure similar to elliot pattern cumulatively which could make an elliot pattern.
Never the less i have shown channel on the monthly chart which...
Why Fibonacci Tools?
Fibonacci tools can help traders to determine upcoming support and resistance areas.
Unlike other indicator which works on historical data and mathematical calculation considered to be as Lagging Indicator.
For Example: MACD, Stoch RSI, Bollinger Band etc.
Where as FIBONACCI tools does not come from any formula and historical data, it is...
In this Idea I'm going to share the simple price action trade which I have taken the May month in the stock D-MART.
Before taking any trade a trader must have find at least 3 confluences which align in the same direction so that we have a clear vision of the particular trade either it's a short trade or buy. By doing you are following a number of certain rules...
I'm trading from last 2 years, started from Indian Stock Market and join the cryptos and forex as well yeah may be you will think that I'm a newbie but trust me price action is the real king.
Today I am sharing one of my favourite strategy the gap with power candle confirmation, so in this tutorial I'm going to tell you How I personally trade gaps the strategy...
