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Doji

How to trade doji candle like a legendhello everyone, It's been a long that we haven't discussed anything here.. so our today's topic of discussion is how to trade/play with signs similar to Doji/ dragonfly/hanging-man etc so we know the sign very well. we are referring here to the candlestick pattern, where there is some conflict between buyers & sellers & both keep trying to push/pull each other resulting in forming a candle where we usually see a small body candle having wicks on both sides. so our next question is how to trade them.. 1. Trend: before trading such patterns the trend should be known very well. 2. Once we have got the trend then wait for the small body candle. 3. Once we have got the candle, mark the high/low of the prior candle of the doji candle. 4. Wait for the next candle to form after the formation of doji candle. 5. once, the marked candle high/ low is breached on a closing basis you are all set to go! examples shared Example -1 Example-2 Example-3 Example-4 Example-5 Example-6 Example-7 Example-8 Example-9 I have shared multiple examples regarding the same & hope I be able to add some logic also.. Please note time frame must be kept the same while analyzing this setup. I have shared entry & stop-loss levels only. will share stop loss technique in another post Thanks for reading!!
NSE:WHIRLPOOLEducation
by ShubhamKatiyar
13
Some Major Candlestick Pattern Bullish Engulfing: The bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows. This pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle. On the second day of the pattern, the price opens lower than the previous low, yet buying pressure pushes the price up to a higher level than the previous high, culminating in an obvious win for the buyers. Bearish Engulfing: A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle). Tweezer Top: A tweezers top is when two candles occur back to back with very similar highs. A tweezers bottom occurs when two candles, back to back, occur with very similar lows. The pattern is more important when there is a strong shift in momentum between the first candle and the second Tweezer Bottom: A Tweezer Bottom occurs during a downtrend when sellers push prices lower, often ending the session near the lows, but were not able to push the bottom any further. Tweezer Bottoms are considered to be short-term bullish reversal patterns that signal a market bottom Doji: A Doji is a candlestick pattern that looks like a cross as the opening and closing prices are equal or almost the same. The word Doji is of Japanese origin which means blunder or mistake that refers to the rarity of having the open and close price be exactly the same Evening Star: An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle. Morning Star: An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle. Hammers: The hammer candlestick is a bullish trading pattern that may indicate that a stock has reached its bottom, and is positioned for trend reversal. Specifically, it indicates that sellers entered the market, pushing the price down, but were later outnumbered by buyers who drove the asset price up. Inverted Hammers: The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend-reversal signal. The inverted hammer looks like an upside-down version of the hammer candlestick pattern, and when it appears in an uptrend is called a shooting star: What Does the Shooting Star Tell You? Shooting stars indicate a potential price top and reversal. The shooting star candle is most effective when it forms after a series of three or more consecutive rising candles with higher highs. Spinning Top: A spinning top is a candlestick pattern that has a short real body that's vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of the asset. It means that neither buyers nor sellers could gain the upper hand. Three Black Crows: What Are the Three Black Crows? Three black crows is a phrase used to describe a bearish candlestick pattern that may predict the reversal of an uptrend. Candlestick charts show the day's opening, high, low, and closing prices for a particular security. For stocks moving higher, the candlestick is white or green. Three White Soldiers: Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high Three inside up: the pattern is a bullish reversal pattern composed of a large down candle, a smaller up candle contained within the prior candle, and then another up candle that closes above the close of the second candle Three Inside Down: The three inside down pattern is a bearish reversal pattern composed of a large up candle, a smaller down candle contained within the prior candle, and then another down candle that closes below the close of the second candle.
NSE:WIPROEducation
by TECHDARSHRESEARCHER
How to trade like a PRO on the basis of Technical Analysis. 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 Control It's the Big guys who moves and manipulate the market, The Retail Traders can't. This is Not investment advice. It's just for learning purpose. Invest your capital at your own risk. Please like, share & follow.
NSE:METROPOLISEducation
by TheGopal
32
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
Tail and look at different things than the long term traders There're 4 tails at the value high and, 2 tails are detected at value low for a major channel . When the price is higher above the value high, We found the tail as price reject and reversal. For instance, you can observe the trend is up before the tail(1) created. U-Turn has been seen after the tail formed. The same thing happened for the tail (1) to (4) in the chart. Vice-versa, Trend is turned up after creating a tail at value low. Conclusion: Find some stocks which usually create TAILS and observe it. And You can also comment or PM me if you find the stocks. I will lead for trade setup on it.
NSE:JUBLFOODEducation
by Trade-Technique
10
Tails and When to use it?TAIL, This is a reversal of prior trend pattern that shows up as one candle reaching out well beyond normal price action. Sometimes referred to as a Hammer which is used to spot signs of a reversal indication . For Example, 1 Tail at a value low and Psychologically, this can signal exhaustion in the selling mentality and a developing appetite for long exposure among traders. Being able to read this market behavior will add value to a trader’s analysis. Furthermore, the same sort of reversal in emotion can be seen in the other direction. Vice versa, 3 Tails at Value high and seen price rejection and change in direction. The " volume " surged 2x from average volume when TAIL is created. 3 Tails at " Value High " of the channel and 1 Tail at the " Value Low " of the channel.
NSE:SBINEducation
by Trade-Technique
9
ADANI PORTS - JOURNEY OF THE SINKING PORTGuys today we are going to discuss about Adani port initially I would would discuss how it was in a uptrend, there after I will show that how we could have identified that it will turn into a down Trend. (Please open this post in a Separate Tab. And using mouse click on the chart and move cursor to the left to see the remaining part of the chart) Adani port was in a uptrend starting from 2017 initially creating series of higher highs and Higher Lows. In this chart, the first two are the base low and base high. The Lows and High thereafter created are used to draw trend lines / channel which is being followed. The points of reversal have been highlighted along with corresponding pattern they are forming. The share followed a fixed channel for 11 Straight months. The details of Highs and Lows during these 11 months are as below: (refer chart as well) Higher Low 1 – No Specific Pattern here. Normal reversal was here. Since we now have 2 Lows (Base Low and Higher Low) these are used to create a trend line . Higher High 1 – The share was near its its historic resistance and created Hangman pattern (Reversal Pattern) and thereby reversed from here. Higher Low 2 – The Share was near its Lower Channel and created an Inside Bar Pattern which indicated reversal. The share moving up thereafter. Higher High 2 – The share was near Its upper channel and created a Doji (Confusion after a series of uptrend) near the resistance, which indicated Confusion after a series of uptrend. Traders were unsure whether the share will continue its upward trend or not and there share started reversing from here. Higher Low 3 – The shared touched the lower channel and the immediately next candle made a Doji / Hammer but it was formed below the Lower Channel. Doji / Hammer indicates weakness in the ongoing trend. So, though share was trading below lower channel, same could not be considered as a breakdown. Also, the share reversed post this. Higher High 3 – The share showed certain consolidation and confusion in the market. So no specific pattern formed here. Higher Low 4 – In the process to make next Low. The share breached Channel and the next 2-3 candles including one big red candle) was formed below the channel thereby confirming breakdown. The share thereafter created Hammer Pattern and reversed from here. Now although On First December it created a higher Low (which indicates uptrend) it gave a channel breakdown. Thereby giving hints of further breakdown. But Since we always follow multiple confirmations, we would not trade a simple breakdown and would require more surety to ensure the same. The share further moved on make a Higher High 4 and reversed with Bearish Engulfing Pattern. The share then continuously moved down and created a Lower Low. As mentioned in the first part, the first indication was the Channel Breakout and Lower Low gave the second confirmation of downfall coming up. Here we should rely on the confirmation and find a good level to short the share. Since the share is near its crucial support, it would be correct to short this share if : 1. It breaks support with Volume 2. If reverses from Support, we should short near next resistance. The share as expected took support of the major support at 350 and reversed from here creating a Bullish Belt Hold Pattern. Since then the share has formed a channel between support and resistance and moving in between. Shorting near resistance and Going long near Support would have been a good strategy. On 22nd the share broke the support with Volume , there confirming the further breakdown.. Historic Support and Resistance have great significance and such levels are always respected by the shares. Further double confirmation should be used while taking position. Every person has different way of analyzing shares. Some follow Candlestick Patterns, Some follow trend-lines, some follow Elliot Wave and there is nothing wrong with any of these methods. Each of these methods is successful in their own and you need to believe in the strategy you believe and religiously follow it. Just to hold onto your faith and continue with your strategy. Even the basic Candlestick patterns have the ability to reap you awesome results. Thanks, i hope this is Helpful. Keep sharing the list of shares you want an analysis on. Thanks :) PS : All views welcomed if they intend a fruitful discussion. And If Warren Buffet says he still learns, who are we to say or believe that we know all. Lets learn together and Earn together. #JOURNEYOFATRADE
NSE:ADANIPORTSEducation
by prathamaggarwal
7
Mahi Mahi: If A Stock Is Down 2%, It Can Be Down by 4 %That's true..down 2% doesn't mean it can not go down further. But the conditions are that: It should be in a strong downtrend on a higher time frame; and we should have proper tools and system to manage our trade. M&M has been in a strong downtrend on Daily, 4H and H. So I thought it could be nice short. But by the time I could open my lappy, stock was already down 2%..how lame. I opened up my Ichimoku System and saw that stock had given a fresh break down below the cloud with higher volumes on 15 min chart (See candle A) and it was already in bearish territory on higher time frames. All I need to do was to find a better opportunity to enter. Candle B went deep into the cloud and then sold off quickly. I placed a sell order below the small swing @ 1319.50 and got hit in the very next candle C. My initial stop was above the high of candle B. Then I kept on trailing. The doji pointed in the chart had a nice volume but price was able to breach only a few paisas above this doji, and I was not stopped. # I always give some room above the high of the candles when I trail so that I am not hit easily. Finally I was thrown out of the trade @ 1303.60. It was a nice 16 point trade or 1% of the stock value. Whenever I get 1% of the stock value as profit I call it a good trade. Without a good system in hand, I might not have touched the stock. Above trade does not mean that I dun lose. I had a small loss in SRT buy, which I covered later in the session by shorting it. Sometimes it takes time for daily trend to clarify itself. I was breakeven in Tataglobal and you all know about Mindtree :) The above experience would definitely help me to be more disciplined in future. I hope the same for all traders. Have Fun, and happy weekend. Hit like and comment. Regards Bravetotrade
NSE:M&MEducation
by Bravetotrade
8