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Candlestickpattern

How to identify a multibagger stock?Ways to identifty a multibagger and a good stock for positional trade: The stock should fulfill the following criteria 1.It should be from a booming sector and the broader index should be uptrending 2.The relative strength of the stock to Nifty 50 should be in uptrend 3.RSI should be above 40 4.The stock should be in a stage 2 uptrend structure (breakout with good volumes + consolidation --> breakout with good volumes as shown in the structure of sun pharma) 5.The stock should have low volume consolidation. Many more examples are there from the realty sector and few from the financial sector and I will be uploading them very soon FOLLOW me to get notified when i upload a new idea Till then, Happy Trading :)
NSE:SUNPHARMAEducation
by keshevdugar
106
Option's Trading With CandleStick Pattern's🤑💲💰💸❤#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA The long black candlestick is 'the mother' and the small candlestick is 'the baby'. The smaller the second candlestick, the stronger is the reversal signal. The shadows of the second candlestick do not have to be contained within the first candle's body. Which candle is best for option trading? Here are the top 5 candlestick patterns that traders must know: Doji. The Doji pattern is formed when the Open Price and Close Prices are the same or almost the same, and there is Low and High Price, so the candle has nearly nobody with a lower and upper wick. ... Hanging Man. ... Hammer. ... Morning Star and Evening Star. Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai
NSE:BANKNIFTYEducation
by ISL-TREND
8
Candlestick pattern: Shooting starShooting Star is a bearish candlestick reversal pattern. It signifies the end of an uptrend and the potential start of a downtrend. Its opposite is the Morning Star. When analyzing this pattern, we should observe if the confirming candle closes within the lower third of the range formed. This condition acts as a filter when deciding whether to initiate a trade or not. This filter makes sense because a stronger confirming candle indicates greater rejection of the uptrend continuation, thus increasing the likelihood of the pattern's success and the formation of a new downtrend. On the other hand, if the confirming candle does not close below two-thirds of the range formed, it could indicate weakness in the direction of the trend and decrease the probability of the start of a new downtrend.
NASDAQ:AAPLEducation
by JRiquelmeTrading
The importance of using different TimeframesWhen visualizing the market and conducting technical analysis, it is crucial to interpret different timeframes. Multi-timeframe analysis can enhance the probability of success in our trading by utilizing support and resistance levels from higher timeframes than our base timeframe. It is also useful for identifying candlestick patterns in other timeframes and assessing their alignment with other signals observed in our analysis.
BMV:CEMEX/CPOEducation
by JRiquelmeTrading
Chart pattern: Head and Shoulders (H&S)The Head and Shoulders, from now on referred to as H&S, is a chart pattern used in technical analysis of stock markets. It is a pattern that indicates a reversal, signaling the end of a trend and the beginning of a new trend in the opposite direction. It is one of the most important and widely used patterns due to its high reliability and the number of required implications. However, this does not mean it is infallible, as its success rate is around 70%. Regarding its potential projection, if the price breaks below the support line after the formation of the Right Shoulder (RS), the range between the maximum price of the Head (H) and the support line is measured. This distance is then applied to the breakout point, as shown in the image, to obtain the minimum pattern projection.
Education
by JRiquelmeTrading
Rally Base Drop – Supply ZoneUnlike conventional Price Action Analysis, which relies on countless chart patterns, Supply Demand Strategy focuses only on four high-probability price formations. Rally Base Drop (RBD) is one of the four price formations which lay the foundation of the Supply Demand Trading Strategy. Rally Base Drop Pattern RBD is a reversal price pattern, which one can generally locate at market turning points. At areas where uptrends get exhausted and begin a new downward move. RBD occurs when prices have been rising, and peaking, followed by a sharp drop. This indicates that the sellers are now more aggressive and have overwhelmed the buyers to form a Supply Zone. Components of a Rally Base Drop Pattern This formation comprises three parts: 1. Leg-In Candle - Bullish Candle to the left-hand side of the base structure. It need not be an explosive candle. 2. Base Candles - Narrow range small-bodied candles which indicate that orders are potentially being accumulated by the institutions. 3. Leg-Out Candle – Huge Explosive Red candle with a sharp drop in price, which indicates the footprint of Institutional Selling activity. Steps to Identify a Rally Base Drop Pattern 1. Start with the Current Price on the Chart and go from Right to left 2. Look up and left until you find a strong Drop in the Price 3. Identify whether the formation is an RBD 4. Mark the Zone When marking the Zone, we need to watch for freshness and the strength of the Leg-Out Candle. Fresh Supply Zones are those where the price has never retraced after formation, they have the highest probability of having unfilled sell orders. Strong Explosive Red Leg-Out Candle indicates that supply and demand are totally out of balance and institutions have been aggressive sellers at that price zone. Trade Action at a Rally Base Drop Supply Zone RBD pattern is the footprint of Institutional selling activity, formed due to the sheer size of their sell orders. This implies that, when prices retrace back to the area, there is a strong likelihood that there will be a large number of pending sell orders. After identifying the supply zone, we as retail traders must wait for the price to retrace to the zone. The first retracement to the RBD supply zone is a high-probability sell opportunity. We can initiate a short trade on the pullback to the zone and in doing so participate along with the Institutions to the short side. Some past examples: Although RBD is a very powerful supply zone formation, it is highly recommended that one mustn’t trade it in isolation. Combining it with factors like a trend, trend exhaustion and location will improve the odds of the zones working in our favour.
NSE:POLYCABEducation
by MAKTradingSchool
'RESUME' the trend journey with a 'PAUSE' candleDefinition:- As the name suggests pause candle is the candle formed in between the trend, the change is usually opposite the trend i.e. if the underlined script is moving in an uptrend then the pause candle will be of negative change and the color will be red and vice-versa. The pause candle indicates a pause in fresh positions by market participants and an entry chance for players expecting reversals. Also, it's an opportunity for new players to enter the trend i.e. for those who have missed the initial trend. Rules or Characteristics of a pause candle:- 1. Prior candles should be aggressive i.e. large candles of the opposite color. 2. It is generally of very small size as compared to the previous one and of the opposite color. 3. Volume is considerably low as compared to previous candles. 4. The RSI level of the spot where this candle originates is usually between the band of 35-75. The psychology behind the pause candle:- In the market everything has a cause and a reason similar pause candle also conveys its message to the market players. The generation of the pause candle signifies that there is fatigue among the participants who were driving the stock or are taking some break. Also, it alerts that new hands have entered into the trend and are trying to offer resistance. Those who are looking for reversals spot this candle and enter into trade with the hope of reversals, they are generally weaker hands. Bigger hands those who were the driving force of the trend also want the new player to enter the trend so that they hunt them down and resume the rally at a lower price. How to trade pause candle:- Now, as small players, we don't know what goes inside but try to predict the message through the candle. If a pause candle is formed it doesn't mean the exhaustion of trend or reversal rather indicates a pause in fresh market position. But, here the aggressive trader enters with trades opposite to the trend. At this stage, two cases arise, note talking for an uptrend:- -> The next candle's high crosses above the high of the pause candle: Maximum times this is the case that arises, here the candle after the pause candle crosses the high of the pause candle now what does this indicate? The indication is that the trend drivers or bigger hands are active again and those who have taken a position against the trend are trapped and will try to escape hence, the move will be much sharper as compared to the initial trend. How to benefit in this case? When you spot such a pause candle that is formed after a continuous trend set it to alert candle and wait for the next candle to form. If the next candle crosses the high of the pause candle take the position along the trend and your stop would be the low of the pause candle which is generally too small and ride the sharper trend which is usually equal to the initial one. -> The next candle's low crosses below the low of the pause candle: Though not arises usually sometimes it does occur, here the candle after the pause candle crosses the high of the pause candle now what does this indicate? The indication is that the trend drivers or bigger hands are in the backseat and are not seeing further upside also there is a chance that they can book profits at this level. How to benefit in this case? When you spot such a pause candle that is formed after a continuous trend set it to alert candle and wait for the next candle to form. If the next candle crosses below the low of the pause candle take the position against the trend and your stop would be the high of the pause candle which is generally too small and ride the reversal trend which is usually half of the initial one. This case comes under the reversal candlestick patterns on which earlier an article was published by me but here we are concerned about a pause candle after which rally resumes. Here, is an example of a different scenario though it doesn't match the above said cases but still the background is of a pause candle. HIL was trading above a rising trendline and suddenly breakdown the line after which we see continue 2-3 red candles following the candles a pause candle is formed with all the above-discussed properties but rather than showing the sharp downfall it again forms a pause candle but note stop loss is not triggered. Here 3-4 pause candles are formed and finally it breakdown all the low with a big red candle and then afterward we saw a huge, sharp downfall. The motive to explain the above example was that though sometimes we don't see rapid action but if your stop is not triggered and the candles are with the low volume then you can assure that a sharp move is pending and sooner or later it will happen. Note: The only constraint is to identify the correct pause candle for which you can refer to the above-said rules are very important. Sometimes the candle after the pause candle crosses both the high and low of the pause candle in that circumstance you have to check the color of the candle, for uptrend it should be green then you can take the position else if it's red then wait for the next candle, and vice-versa for the downtrend.
NSE:NIFTYEducation
by Chaser30
5
How the hammer candle stick pattern is formed ??Educational Post Hammer candle stick pattern is important pattern shows counter attack of bulls. This pattern has significance when price is near crucial support or near long term moving average. Hammer shows that bears are unable to beat the bulls and not able to make close in bulls territory. Bulls also shows their presence when price enters in their territory. Please like, share and folloew for more such educational posts. Have a Happy Trading :) !!!
TVC:SILVEREducation
by Darshan_Panchal
BACKTESTED PIVOT INTRADAY STARTEGY [INDIA MARKET TIMING]A Back-tested Profitable Strategy for Free!! A PIVOT INTRADAY STRATEGY for 5 minute Time-Frame , that also explains the time condition for Indian Markets The Timing can be changed to fit other markets, scroll down to "TIME CONDITION" to know more. The commission is also included in the strategy . The basic idea is when , 1) Price crosses above ema1 ,indicated by pivot high line in green color . 2) Price crosses below ema1 ,indicated by pivot low line in red color . 3) Candle high crosses above pivot high , is the Long condition . 4) Candle low crosses below pivot low , is the Short condition . 5) Maximum Risk per trade for the intraday trade can be changed . 6) Default_qty_size is set to 60 contracts , which can be changed under settings → properties → order size . 7) ATR is used for trailing after entry, as mentioned in the inputs below. // ═════════════════════════// // ————————> INPUTS <————————— // // ═════════════════════════// Leftbars ——————————> Length of pivot highs and lows Rightbars —————————> Length of pivot highs and lows Price Cross Ema —————> Added condition ATR LONG —————————> ATR stoploss trail for Long positions ATR SHORT ————————> ATR stoploss trail for Short positions RISK ————————————> Maximum Risk per trade for the day The strategy was back-tested on RELIANCE ,the input values and the results are mentioned under "BACKTEST RESULTS" below . // ═════════════════════════ // // ————————> PROPERTIES<——————— // // ═════════════════════════ // Default_qty_size ————> 60 contracts , which can be changed under Settings ↓ Properties ↓ Order size // ═══════════════════════════════// // ————————> TIME CONDITION <————————— // // ═══════════════════════════════// The time can be changed in the script , Add it → click on ' { } ' → Pine editor→ making it a copy [right top corner} → Edit the line 25 . The Indian Markets open at 9:15am and closes at 3:30pm . The 'time_cond' specifies the time at which Entries should happen . "Close All" function closes all the trades at 3pm , at the open of the next candle. To change the time to close all trades , Go to Pine Editor → Edit the line 103 . All open trades get closed at 3pm , because some brokers don't allow you to place fresh intraday orders after 3pm . NSE:RELIANCE // ═══════════════════════════════════════════════ // // ————————> BACKTEST RESULTS ( 128 CLOSED TRADES )<————————— // // ═══════════════════════════════════════════════ // INPUTS can be changed for better back-test results. The strategy applied to NSE:RELIANCE ( 5 min Time-Frame and contract size 60) gives us 61% profitability , as shown below It was tested for a period a 6 months with a Profit Factor of 1.45 , Net Profit of 21,500Rs . Sharpe Ratio : 0.311 Sortino Ratio : 0.727 The graph has a Linear Curve with consistent profits. The INPUTS are as follows, 1) Leftbars ————————> 3 2) Rightbars ——————— > 5 3) Price Cross Ema ———> 150 4) ATR LONG ——————> 2.7 5) ATR SHORT —————> 2.9 6) RISK —————————> 2500 7) Default qty size ——> 60 NSE:RELIANCE Save it to favorites. Apply it to your charts Now !! FOLLOW US FOR MORE ! Thank me later ☺
NSE:RELIANCEEducation
by The_Algo_Engineer
1
Intraday Consolidation Breakout ExplainedOK let's get started , A Day Trading (Intraday) Consolidation Breakout Indication Strategy that explains time condition for Indian Markets . The commission is also included in the strategy . The basic idea is , 1) Price crosses above upper band , indicated by a color change (green) is the Long condition 2) Price crosses below lower band , indicated by a color change (red) is the Short condition 3) ATR is used for trailing after entry // ═══════════════════════════════// // ————————> TIME CONDITION <————————— // // ═══════════════════════════════// The Indian Markets open at 9:15am and closes at 3:30pm. The time_condition specifies the time at which Entries should happen . "Close All" function closes all the trades at 2:57pm. All open trades get closed at 2:57pm , because some brokers dont allow you to place fresh intraday orders after 3pm . NSE:NIFTY1! // ═══════════════════════════════════════════════ // // ————————> BACKTEST RESULTS ( 114 CLOSED TRADES )<————————— // // ═══════════════════════════════════════════════ // LENGTH , MULT (factor) and ATR can be changed for better backtest results . The strategy applied to NIFTY ( 3 min Time-Frame and contract size 5) gives us 60% profitability , as shown below It was tested for a period a 8 months with a Profit Factor of 2.2 , avg Trade of 6000Rs profit Sharpe Ratio : 0.67 The graph has a Linear Curve with consistent profits. NSE:NIFTY1! // ═════════════════════════// // ————————> INPUTS <————————— // // ═════════════════════════// For the Back-Tested results : LENGTH ————————> 30 MULT_STDEV ——————> 3 ATR TRAIL ————————> 2 Save it favorites. Apply it to your charts Now !! Thank me later ;)
NSE:NIFTY1!Education
by The_Algo_Engineer
One candlestick pattern - The MarubozuHey everyone! In this post, we are going to talk about a candlestick pattern known as Marubozu, along with a few exhibits that may help you solidify your understanding of this pattern. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! The candlestick charts offer a quick picture into the psychology of buyers and sellers. Before proceeding further, a few things to keep in mind: → A bearish candlestick indicates the opening price of the session being higher than the closing price. → Similarly, a bullish candlestick indicates the opening price of the session being lower than the closing price. → The shadow at the top and bottom represent the high and low for the session. → The size of the real body is indicative of the strength of the trend. What is a Marubozu pattern? A Marubozu is a candlestick with a full real body and no shadows. This solid body indicates a strong trend, be it in any direction. The name Marubozu comes from the Japanese and means "close-cropped", indicating a candle with no shadow. Marubozu can be divided into two types, depending on the bias. ∎ Bullish marubozu ∎ Bearish marubozu A Marubozu can appear anywhere in the chart irrespective of the prior trend; the trading implication remains the same. ⚠️ Please notice the textbook definition of a Marubozu is a candle with no shadows. However, in practice, the ideal setups rarely occur. Hence, there is a little bit of wiggle room on either side. 🟩 Bullish Marubozu → In a bullish Marubozu, the lack of the upper and lower shadow indicates that the low and high are equal to the open and close, respectively. However, there may be some shadows in reality, therefore we must be versatile within limits. → A bullish Marubozu indicates that market participants are willing to buy the stock at any price point throughout the day. As a result, the stock closes near the session's high. → In general, the occurrence of a bullish Marubozu indicates that the sentiment has strongly shifted to the upside and we can see higher prices in the coming sessions. Hence a trader should look for buying opportunities whenever the price pulls back to lower levels. Exhibit 1: Bullish Marubozu Exhibit 2: Bullish Marubozu with subsequent uptrend 🟥 Bearish Marubozu → In a bearish marubozu, the open price is almost equal to the high whereas the session closes near the low price. → A bearish Marubozu indicates a strong bearish sentiment because the market participants are willing to sell the stock at any price point throughout the day. → In general, the occurrence of a bearish Marubozu indicates that the sentiment has strongly shifted to the downside and we can see lower prices in the subsequent sessions. Hence a trader should look for selling opportunities whenever the price pulls back to higher levels. Exhibit 1: Bearish Marubozu Exhibit 2: Bearish Marubozu with subsequent down trend Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , Telegram , and YouTube for more awesome content! 💘
NSE:TITANEducation
by TradingView
8
The Most Powerful CandlesticksHello Everyone 👋 Before Starting I want to tell you all the names of the Candle sticks in this Part 1:- These are:- 1. Evening Star 2. Morning Star 3. Bullish Engulfing 4. Bearish Engulfing 5. Three white soldiers 6. Three black crows 7. Three Identical Crows 8. Bullish Meeting Lines 9. Bearish Meeting Lines 10. Bullish Breakaway 11. Tweezers Top 12. Bearish Breakaway 13. Tweezers Bottom 14. Falling Three Method 15. Matching Low 16. Rising Three method 17. Matching High --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Evening Star:- Definition:- An Evening star is a bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up a Green candle after it is a small Doji and after it a Red candle as shown in the Thumbnail. The Doji opens up in a gap with the green candle and with a gap, the red candle also gets closed. When to trade:- So to trade this we have to wait until it breaks the low of the Red candle with a confirmation when you have got the confirmation just take trade and enjoy the profit. Important The evening star pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that an evening star pattern has occurred and confirmed or not. It is very popular between traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2. Morning Star:- Definition:- A Morning star is a Bullish candlestick consisting of three candles used by technical analysts to detect an uptrend. It holds up a Green candle after it is a small Doji and after it a Red candle as shown in the Thumbnail. The Doji opens up in a gap with the green candle and with a gap, the red candle also gets closed. When to trade:- So to trade this we have to wait until it breaks the high of the green candle with a conformation when have got the confirmation just take trade and enjoy the profit. Important The morning star pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that an evening star pattern has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3. Bullish Engulfing:- Definition:- A Bullish Engulfing is a Bullish candlestick consisting of two candles used by technical analysts to detect an uptrend. It holds up a Small Red candle and after it a Big Green candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the High of the green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bullish Engulfing pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that a Bullish Engulfing has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4. Bearish Engulfing:- Definition:- A Bearish Engulfing is a Bearish candlestick consisting of two candles used by technical analysts to detect a downtrend. It holds up a Small Green candle and after it a Big Red candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Low of the red candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Engulfing pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Engulfing has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5. Three White Soldiers Definition:- A Three white soldiers is a Bullish candlestick consisting of three candles used by technical analysts to detect an Uptrend. It holds up three Green candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three white soldiers pattern is also known as one of the most reliable indicators to know that the uptrend is strong and confirmed or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6. Three Black Crows Definition:- A Three Black Crows is a Bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up three Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three Black Crows pattern is also known as one of the most reliable indicators to know that the downtrend is strong and confirmed or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7. Three Identical Crows Definition:- A Three Identical Crows is a Bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up three Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three Identical Crows pattern is also known as one of the most reliable indicators it is better than both " Three white soldiers and Three black crows. To know that the downtrend is strong or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8. Bullish Meeting Lines:- Definition:- A Bullish Meeting Lines is a Bullish candlestick consisting of two candles used by technical analysts to detect an Uptrend. It holds up a Green candle and after it a Red candle. Both of them Meet at the close of Red and the Opening of Green as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Red candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bullish Meeting Lines pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that a Bullish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 9. Bearish Meeting Lines:- Definition:- A Bearish Meeting Lines is a Bearish candlestick consisting of two candles used by technical analysts to detect a downtrend. It holds up a Red candle and after it a Green candle. Both of them Meet at the close of Green and the Opening of Red as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Meeting Lines pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 10. Bullish Breakaway:- Definition:- A Bullish Breakaway is a Bullish candlestick that can consist of many candles used by technical analysts to detect an Uptrend. It holds up a Green candle but before it makes a group of Red candles which are small as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Meeting Lines pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 11. Tweezers Top:- Definition:- A Tweezers Top is a Bearish candlestick consisting of two Dojis or Hammer or Hanging man used by technical analysts to detect a downtrend. It holds up a Green candle and after it a Red candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the shadow price of both of the candles with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Tweezers Top pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Tweezers Top has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 12. Bearish Breakaway:- Definition:- A Bearish Breakaway is a Bearish candlestick that can consist of many candles used by technical analysts to detect a downtrend. It holds up a Red candle but before it makes a group of Green candles which are small as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green Candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Breakaway pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Breakaway has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 13. Tweezers Bottom:- Definition:- A Tweezers Bottom is a Bullish candlestick consisting of two Dojis or Hammer or Hanging man used by technical analysts to detect an Uptrend. It holds up a Red candle and after it a Green candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the shadow price of both of the candles with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Tweezers Bottom pattern is also known as one of the most reliable indicators to know that an Uptrend has begun. To make it more reliable traders use trendlines to confirm that a Tweezers Top has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 14. Falling Three Method:- Definition:- A Falling Three Method Jaisa Naam waisa kaam it is a Bearish candlestick consisting of Five candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End and Between them are three small Green candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Falling Three Method pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 15. Matching Lows:- Definition:- A Matching Low is a Bearish candlestick consisting of two candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End but the end one is small as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Matching Low pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 16. Rising Three Method:- Definition:- A Rising Three Method Jaisa Naam waisa kaam it is a Bullish candlestick consisting of Five candles. It is used by technical analysts to detect a downtrend. It holds up a Big Green candle at the start and the End and Between them are three small Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Rising Three Method pattern is also known as one of the most reliable indicators to know that an uptrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 17. Matching Highs:- Definition:- A Matching High is a Bearish candlestick consisting of two candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End but the end one is small as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Matching High pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. Hope you all like it 👍 Bye-Bye ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NSE:NIFTYEducation
by MAYANKTECHRESEARCHING
2
CANDLE PATTERN 2 - BEARISH ENGULFINGPattern 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 behind it : 1)The Bulls lose momentum & the Bears take charge and managed to close below the Green candle. 2)It implies the bears have fully override the bulls. How to trade it ? 1)Look for the Bearish Engulfing at the Top of the Uptrend. 2)Upon confirmation, open a Short position in the 3rd Candle. 3)Place a Stoploss above the high of the Red candle.
HEducation
by Divyaapugal
7
Shooting Star - Complete GuideWhat 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 candlestick for it to be considered a shooting star. And, it must appear at the top of an uptrend. As a result, the shooting star candlestick pattern is often thought to be a possible signal of bearish reversal. This means an uptrend might not continue (prices may fall). Traders should be careful not to confuse the shooting star pattern with an inverted hammer candlestick pattern. They both have a longer upper wick and small body. But the inverted hammer indicates bullish as opposed to bearish reversal. Also, the inverted hammer is often seen at the bottom of a downtrend. How to recognize it: i) Little to no lower shadow ii) The price closes at the bottom ¼ of the range iii) The upper shadow is about 2 or 3 times the length of the body What does Shooting Star tells you ? i) Shooting stars signals a potential downside reversal ii)A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions. At the end of the trading session, the sellers push the price down near the open. or At the buying climax, huge selling pressure stepped in and pushed price lower. The selling pressure is so strong that it closed below the opening price. In short, a Shooting Star is a bearish reversal candlestick pattern that shows rejection of higher price. Before trading with the shooting star, one should remember the following points: Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend. Entry is below the Shooting Star candle low. Stop Loss: Place Stop Loss just above the high of Shooting Star candle or above recent high. Taking Profits: Minimum target is the size of the Shooting Star candle. I generally prefer 1:2 as first target. Best way to ride the move is to sit till any bullish signal is sensed. You can target previous swing lows or support zone. Examples- TATAMOTORS NIFTY NAUKRI High Probability Scenario:- i)Focus on the major Resistance levels, that’s where traders get trapped When you trade The Shooting Star candlestick pattern, you want to focus on trading the major Resistance levels (the ones which can be seen on the higher timeframe).When a level is obvious and the price breaks out of it, many traders will hop on the bandwagon and buy the breakout (hoping to catch a piece of the move).However, if the price makes a false breakout, this group of traders is trapped, and their stops will trigger strong selling pressure. Now, this is to your advantage because The Shooting Star candlestick pattern allows you to trade the false breakout and profit from “trapped” traders. So the more obvious the level, the more traders will get trapped — and you make more money. Conclusion So here’s what you’ve learned today: The Shooting Star candlestick is a bearish reversal pattern that shows rejection of higher prices. Just because you a spot a Shooting Star candlestick pattern doesn’t mean you go short immediately because you must also consider the context of the markets. Confirmation to go short is always below shooting star candle's low. Set your stop loss slightly above shooting star candle or above previous highs.
NSE:NIFTYEducation
by Omahto
8
High Probability Candlestick Pattern 1: Three Line StrikeAs 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 2021 Adding Another Example here of Reliance Note: Candlestick patterns alone are not reliable sometime, so combine them with some indicators like RSI to spot positive divergence on same or lower time frame OR MACD crossover and histogram positive as shown in below example DISCLAIMER: There is no guarantee of profits or no exceptions from losses. The stock and its levels discussed are solely the personal views of my research. You are advised to rely on your judgement while investing/Trading decisions. Seek help of your financial advisor before investing/trading. Investment Warnings: We would like to draw your attention to the following important investment warnings. -Investment is subject to market risks. -The value of shares and investments and the income derived from them can go down as well as up. -Investors may not get back the amount they invested - losing one's shirt is a real risk. -Past performance is not a guide to future performance. -I may or may not trade this analysis --------------------------(((((LIKE)))))-------------------------------
NSE:NIFTYEducation
by Niftydirection
18
How to identify Breakout - Price ActionFor the purpose of demonstrating how one can identify a trend change using Support - Resistance and Price Action, I have taken the daily chart of IEX. I had also identified and posted about it before the recent rally. The first step is to establish a clear support and resistance line. In case of a breakout, I like to keep my target at around the same price difference range between old support and old resistance after it bounces from the resistance. The crucial thing lies in identifying the candlestick pattern around the support - resistance. In our case, when the price first hit the resistance, it formed a clear Bearish Engulfing and the next time, it formed a healthy dark cloud cover followed by an engulfing. These are clear red flags when a trader should start booking profits. Similair bullish patterns can be identified at support region like the Morning Star pattern as in the above chart. In order for the price to give a breakout, Volume & Momentum play a very crucial role. A rising volume with price rise builds momentum, and increases the chances of a breakout. Another important observation is to see HOW STRONG did the PRICE BOUNCE from the support. Long wicks, very less or almost no consolidation around the support and a bounce back from an area above the support instead of retracing all the way back to the support are clear indications of trend reversal from Bearish to Bullish. Also notice how the candle formed a Morning Star during the bounce, this further strengthens our conviction that the trend is changing. Observe how the red candles grow smaller and smaller as they approach support, this indicates weakening of the bearish momentum. Also the Resistance was approached in a very aggressive foray this time with clear long green candles indicating a very strong pent up demand. I hope this analysis provides some insight into how the Price action gives an early indication of the future price movement. Thanks for reading! Keep Learning :)
NSE:IEXEducation
by Aayush_Rungta
36
TOP/BOTTOM REVERSAL CANDLE PATTERNSHi Its been a while since my last post. In this post I have represented selective candlestick reversal patterns. In a candlestick, "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM. In most of these patterns only bodies are important. There are no conditions for wicks unless specifically mentioned like in abandoned baby star and (first two candles of) shooting star pattern. In an abandoned baby star pattern the wicks of the second day should not overlap with the wicks of first and third day. But there can be wick overlapping in morning and evening stars where the condition is for bodies only. Similarly in shooting star, the second day should not overlap with the first day (not even wicks) whereas the third day may have some overlapping. One should always try these patterns with some sort of confirmation in the form of volume or overbought/oversold scenarios etc. While taking a trade based on these patterns one should follow money management and trade management principles. I hope this post will update your knowledge in one way or the other. Do not forget to like and comment (for any doubts) to encourage writing on trading view. Regards JJSingh
NSE:NIFTYEducation
by Bravetotrade
41
Elgi Equipments ELGIEQUIP - Positional Trading I have based my analysis on Stan Weinstein's framework on Weekly chart where price structure, 30 weekly MA, volume and relative strength (not RSI) play a role in analysing the trend. Personally, I like stocks near ATH because it tells me that prior resistance has been broken. It is important for me to select stocks that have strong relative strength against a particular index such as Nifty Infra in this case (Elgi makes compressors and they are capital goods for industry) or Nifty 500 the broader market. The area where price is moving up (marked with a green upward arrow) is defined as Stage 2 structure according to Stan Weinstein. After this, we see a Stage 3 structure marked with a black box. During Stage 3 structure, price is rangebound and this period can be for many weeks or months. Remember, this is where we lose TIME. And for traders (and also Investors), TIME is important. I have marked a breakout candle (in orange) and that is where I like to enter provided I see confirmation on volumes (marked with orange in the volume histogram). Stan Weinstein says Positional Traders should ride the trend and exit stocks only when they start trading below the 30 weekly MA. He further says not to buy in LH LL structure because there is no way one can tell how far or how long can the fall be. See for yourself how often stock stays lower. The breakout candle of 10 August 2020 is of importance. Note the volume expansion. Also note that retracement is till the mid point of the 10 August 2020 candle and stock does not fall anymore. The candles of 9 November 2020 and 7 December 2020 are also very important. The latter breaks prior pre-pandemic resistance. Around this time the Relative Strength of the stock starts outperforming against the broader market i.e. Nifty 500. Analysis is easy on hindsight. What would I do if I were to take a buy call now? I will go long only when I see a breakout candle (marked in orange) confirmed by Volumes. Because Nifty is near ATH and in Stage 3 structure, there are two things that might happen. It may again start a new Stage 2 structure or form a Stage 4 structure which is start falling from the box. Hence in a market like this, I would shift to the Daily chart, add a 50 Daily MA and if the stock breaches 50DMA and goes lower, I will exit 50% of my holding. And if it breaches the nearest swing low, I will exit completely- the candle of 27 May 2021 on Daily chart. This is a variation from Stan Weinstein's framework. Disclaimer- This is not an investment or trading buy/sell advice. The purpose is to share knowledge and learn from the community. I am not invested in the stock as on date.
NSE:ELGIEQUIPEducation
by culturalDealer79974
2
Single Candlestick Chart Pattern - Bullish Hammer Hammers have a small real body and a long lower shadow. Hammers occur after a price decline. The hammer candlestick shows sellers came into the market during the period but by the close the selling had been absorbed and buyers had pushed the price back to near the open. The close can be above or below the open, although the close should be near the open in order for the real body to remain small. The lower shadow should be at least two times the height of the real body. Hammer candlesticks indicate a potential price reversal to the upside. The price must start moving up following the hammer; this is called confirmation. Confirmation - Hammers are most effective when they are preceded by at least three or more declining candles. A declining candle is one which closes lower than the close of the candle before it. A hammer should look similar to a "T". This indicates the potential for a hammer candle. A hammer candlestick does not indicate a price reversal to the upside until it is confirmed. Confirmation occurs if the candle following the hammer closes above the closing price of the hammer. Ideally, this confirmation candle shows strong buying. Candlestick traders will typically look to enter long positions or exit short positions during or after the confirmation candle. For those taking new long positions, a stop loss can be placed below the low of the hammer's shadow. Hammers aren't usually used in isolation, even with confirmation. Traders typically use price or trend analysis, or technical indicators to further confirm candlestick patterns.
BITSTAMP:ETHUSDEducation
by TraderLeVeR
36