Get started

Candlestick Analysis

Strong Bullish Momentum with RSI Breakout📈 Stock: BSE Ltd (NSE:BSE) 🔍 Closing Price: 5631 📊 Patterns: Bullish Engulfing, Bullish Marubozu, Strong Bullish Candle 📉 Technical Signal: RSI Breakout Key Observations: ✅ Bullish Engulfing & Marubozu indicate strong buying pressure. ✅ RSI Breakout, signaling increased bullish momentum. ✅ Strong price action with a decisive close near the high. Key Levels to Watch: 🔹 Support Zones: 5295 – 6009 – 6345 🔹 Resistance Zones: 5295 – 4960 – 4770 Trading Plan: 📌 Sustaining above 5675, potential upside towards 6009 and 6345. 📌 Below 5295, a pullback towards 4960 could be possible.
NSE:BSELong
by simpletradewithpatience
2
Three Black Crows: How to Spot and Profit from Bearish ReversalsHello Traders! I hope you’re all doing great! Today, we’ll discuss the Three Black Crows candlestick pattern, one of the most reliable bearish reversal patterns you can find in technical analysis. If you're serious about identifying potential trend reversals, understanding this pattern is essential. The Three Black Crows is a powerful bearish signal that typically marks the end of an uptrend. It consists of three consecutive long red (or black) candles that close progressively lower, showing strong selling pressure and a shift in momentum. This pattern is particularly effective when it forms at a key resistance level, and it can lead to significant price declines. What is the Three Black Crows Pattern? The Three Black Crows candlestick pattern signals the reversal of an uptrend. The pattern forms when: The first candle is a large red candle, closing near the low of the day. The second candle opens below the first one and closes lower. The third candle opens lower than the second one and closes near its low. Each candle in the sequence is characterized by strong bearish price action, and their alignment suggests that bears are gaining control. Key Characteristics of the Three Black Crows Pattern Bearish Trend Reversal: Three long red candles following an uptrend suggest a shift in momentum from buyers to sellers. Strong Resistance Zone: The pattern is more reliable when it forms near a strong resistance level, where the price has struggled to move past in the past. Closing at the Low: Each of the three candles closes near their respective lows, showing increasing selling pressure. Volume Confirmation: Volume should ideally increase with each successive candle, confirming that bears are taking control. How to Trade the Three Black Crows Pattern Entry Point: After the formation of the third candle, consider entering a short position once the price breaks the low of the third candle. This confirms the bearish trend. Stop Loss: Place your stop loss just above the high of the third candle to minimize risk in case of a false breakout. Profit Target: Measure the distance from the high of the pattern to the low of the third candle. Project this distance downward from the breakout point to estimate your profit target. Real-World Application: Tata Consultancy Services Case Study In the chart of Tata Consultancy Services (above), we can see a classic example of the Three Black Crows pattern. The price formed a resistance zone and then saw the three consecutive bearish candles break the support, confirming the bearish trend reversal. The huge fall after the pattern’s confirmation indicates the power of this candlestick formation. Risk Management Considerations Position Sizing: Adjust your position size based on your risk tolerance and make sure it fits within your overall portfolio strategy. Stop Loss Placement: Place your stop loss above the third candle to avoid potential losses from a false breakout. Confirmation with Volume: Always wait for volume confirmation before entering the trade. Volume should increase as the pattern forms. What This Means for Traders The Three Black Crows is an excellent pattern to spot potential trend reversals, especially after an uptrend. This pattern works best when combined with other technical indicators like trendlines, support and resistance, and moving averages to confirm the trend reversal. Look for the pattern at resistance levels to identify high-probability bearish reversals. Confirm with volume to increase the reliability of the pattern. Use proper stop loss placement to manage your risk and ensure a favorable risk-to-reward ratio. Conclusion The Three Black Crows candlestick pattern is a reliable bearish reversal signal that can help traders capitalize on price declines. By identifying the pattern correctly, waiting for confirmation, and applying solid risk management strategies, you can improve your trading success. Have you traded using the Three Black Crows pattern? Share your experiences in the comments below! Let’s keep learning and growing together!
NSE:TCSEducation
by TraderRahulPal
Mastering the Three White Soldiers Pattern: A Bullish ReversalHello Traders! I hope you're doing great in your trading journey! Today, we will be diving into the Three White Soldiers chart pattern, a powerful bullish reversal pattern that can help you spot a potential trend shift. This pattern typically occurs after a downtrend, signaling a strong reversal. If you can spot it early, it offers a high-reward trading opportunity. Let’s break down the pattern and how to use it effectively. What is the Three White Soldiers Pattern? The Three White Soldiers pattern consists of three consecutive long bullish candles that close progressively higher. This pattern typically appears after a downtrend and signifies a potential reversal. The pattern shows a strong shift in market sentiment, where buyers are stepping in to push the prices higher. Key Characteristics of the Three White Soldiers Pattern Trend Reversal: The pattern forms after a strong downtrend, signaling a potential trend reversal. Three Consecutive Bullish Candles: The pattern consists of three long bullish candles, each closing higher than the previous one. Strong Closing Prices: Each candle should close near its high, indicating strong buying pressure. Volume Confirmation: The pattern is more reliable when accompanied by increasing volume, showing strong interest in the reversal. How to Trade the Three White Soldiers Pattern Entry Point: Consider entering a long position once the third candle closes, confirming the reversal. Stop Loss: Place your stop loss below the low of the first candle in the pattern to limit potential losses. Profit Target: For setting targets, measure the height of the pattern (distance between the low of the first candle and the high of the third candle) and project this distance upwards from the entry point to set your profit target. Real-World Application: TCS Case Study In the chart of Tata Consultancy Services (TCS) , we see a clear Three White Soldiers pattern forming after a downtrend. The price closed progressively higher over three consecutive days, breaking key resistance levels and signaling a potential bullish trend. Traders entering after the confirmation of the pattern would have witnessed a substantial upward move, with a clear Stop Loss and Profit Target in place. Risk Management Considerations Position Sizing: Adjust your position size according to your risk tolerance and overall portfolio. Stop Loss Placement: Place your stop loss below the low of the first candle to manage risk in case the pattern fails. Volume Confirmation: Confirm the pattern with increasing volume to ensure the strength of the reversal. What This Means for Traders The Three White Soldiers pattern is an excellent tool for identifying trend reversals and can be a powerful signal when used in conjunction with other technical indicators. Remember to always look for confirmation with volume and manage your risk effectively. Look for the pattern after a significant downtrend to identify potential bullish reversals. Use volume to confirm the strength of the pattern and increase the reliability of your trade. Implement stop loss placement to minimize risk while targeting a favorable risk-to-reward ratio. Conclusion The Three White Soldiers pattern is a reliable bullish reversal signal that can offer excellent trading opportunities when combined with other technical indicators. By understanding its key characteristics, waiting for confirmation, and managing risk appropriately, you can increase your chances of making profitable trades. Have you traded using the Three White Soldiers pattern? Share your thoughts and experiences in the comments below! Let’s keep learning and improving our trading strategies!
NSE:TCSEducation
by TraderRahulPal
Showing Strength with RSI Breakout📈 Stock: Voltas (NSE:VOLTAS) 🔍 Closing Price: 1284.10 📊 Pattern: Bullish Engulfing after Bullish Piercing (17.02.2025)-Bulls taking charge! 📉 Technical Signal: Strong Bullish Candle + RSI Breakout Key Observations: ✅ Bullish Engulfing confirms buyer strength. ✅ RSI Breakout, signaling strong momentum. ✅ Attempting to move out of the weak zone. Key Levels to Watch: 🔹 Support Zones: 1311 – 1338 – 1388 🔹 Resistance Zones: 1234 – 1185 – 1158 Trading Plan: 📌 Sustained move above 1311 could trigger further upside toward 1338 and 1388. 📌 Weakness below 1234 may bring downside pressure.
NSE:VOLTASLong
by simpletradewithpatience
Strong Bullish Breakout📈 Stock: Tornt Pharma (NSE:TORNTPHARM) 🔍 Closing Price: 3120.55 📊 Pattern: Bullish Engulfing & Strong Bullish Candle 📉 Technical Signals: RSI Breakout | EMA 200 Crossover Key Observations: ✅ Bullish Engulfing confirms buying momentum. ✅ RSI Breakout signals strength. ✅ EMA 200 Crossover, indicating potential trend continuation. Key Levels to Watch: 🔹 Support: 3027 – 2934 – 2882 🔹 Resistance: 3171 – 3223 – 3316 Trading Plan: 📌 Above 3171, potential upside towards 3223 and 3316. 📌 Below 3027, caution as weakness may extend to 2934.
NSE:TORNTPHARMLong
by simpletradewithpatience
Strong Bullish Momentum with RSI Breakout📈 Stock: KEI Industries (NSE: KEI) 🔍 Closing Price: 3568.60 📊 Patterns: Bullish Engulfing, Bullish Marubozu, Strong Bullish Candle 📈 Momentum Signal: RSI Breakout Key Observations: ✅ Bullish Engulfing + Marubozu indicate strong buying pressure. ✅ RSI Breakout, signaling increasing momentum. ✅ Trying to move out of the weak zone, showing strength. Key Levels to Watch: 🔹 Support Zones: 3435 – 3302 – 3226 🔹 Resistance Zones: 3644 – 3720 – 3853 Trading Plan: 📌 Above 3644, price may extend toward 3720 and 3853. 📌 Below 3435, a pullback toward 3302 cannot be ruled out.
NSE:KEILong
by simpletradewithpatience
Deepak Fertilizers - Bullish Setup with EMA 200 Crossover📈 Stock: Deepak Fertilisers (NSE:DEEPAKFERT) 🔍 Closing Price: ₹1034.25 📊 Pattern: Bullish Engulfing 📉 Technical Signal: EMA 200 Crossover Key Observations: ✅ Bullish Engulfing pattern on the daily chart suggests buying interest. ✅ EMA 200 Crossover, indicating potential trend reversal or continuation. ✅ Strong volumes supporting the breakout. Key Levels to Watch: 🔹 Support Zones: ₹981 – ₹928 – ₹897 🔹 Resistance Zones: ₹1065 – ₹1096 – ₹1148 Trading Plan: 📌 Above ₹1065, potential momentum towards ₹1096 and ₹1148. 📌 Below ₹981, caution is advised, as weakness may extend toward ₹928.
NSE:DEEPAKFERTLong
by simpletradewithpatience
SRM CONTRACTORS - At Channel Support The stock has been travelling in an ascending channel respecting the borders in 4 previous instances. Within the channel, we have seen how the stock price action has been repeating itself. As the saying goes history repeats itself, this time again the stock has shown strength at the channel support which in my opinion seems to be indicating a possible rally towards the upper border of the channel. Only time will tell. Company has reduced debt. Company is expected to give good quarter 3 Years ROE 34 %
NSE:SRMLong
by CannySunny
4
Nifty 50: Market Structure Break on 60-Hour TimeframeMarket Structure Break: The 60-minute timeframe shows a clear structural break, pushing prices into a premium zone. Premium to Discount Retracement: Given the overextended nature of the premium zone, a retracement to a discount zone is expected. Potential Reversal: The retracement could lead to a reversal, where market momentum shifts, creating a more balanced trading environment. Consolidation Point: The market is likely to consolidate around the 23400 level, a critical juncture that corresponds with the FVG and discount zone, serving as a potential springboard for future upward movement. Traders should monitor the price action closely in the discount zone for signs of reversal confirmation.
NSE:NIFTY
by HighProbabilitySetups
1
BOMBAY SUPER SEEDS LTD [BSHSL]- DESCENDING CHANNEL PATTERN1. Pattern Analysis: What We See - Pattern Name: Descending Channel with Double Bottom Breakout. - What is Happening? - The stock has been moving downwards within a descending channel for the last two years. This means the price has been repeatedly bouncing between two downward-sloping lines (the upper red resistance line and the lower blue support line). - Recently, the price broke above ₹173, which was the resistance level of the descending channel and the breakout point for a double bottom pattern (a strong bullish reversal pattern). - Why is This Important? - A breakout from such long-term patterns, especially with strong volume, indicates that the trend is changing from bearish to bullish. - The stock is showing strength and is now poised to move higher if it holds above ₹173. 2. Volume Analysis: What the Numbers Tell Us - Recent Volume Behavior: - Over the past two weeks, we’ve seen a sharp increase in trading volume. This suggests that big players (like institutions) are buying the stock in anticipation of higher prices. - This spike in volume aligns perfectly with the breakout above ₹173, adding confidence to the bullish signal. 3. Price Action: What the Candles Show - Recent Candlesticks: - The last few candles on the chart are big and bullish (wide bodies with strong upward movement). - The stock is now trading near ₹170–₹173, showing strength after the breakout. 4. Bullish Signal Confirmation - Breakout Confirmation: - The stock has crossed and stayed above ₹173, confirming the breakout. - This is a clear sign of a bullish trend reversal. - Key Levels to Watch: - Support (Safety Net): ₹150 is the critical support level. If the stock falls below this, the bullish setup could weaken. - Resistance (Next Hurdles): - First Target: ₹200 (psychological and historical resistance). - Second Target: ₹260 (next major resistance based on the pattern). 5. Entry, Targets, and Stop Loss - Recommended Entry: - You can consider entering near ₹173 if the stock holds above this level with good volume. - Targets: - First Target: ₹200 (short-term). - Second Target: ₹260 (medium-term). - Stop Loss: - Keep a stop loss at ₹150. This ensures that if the stock moves against the setup, your losses are minimized. Disclaimer: This analysis is for educational purposes only and should not be considered as investment advice. We are SEBI-registered research analysts, and while the information shared is based on thorough technical analysis, you are strongly advised to consult your financial advisor or analyst before making any investment decisions. Markets carry risks, and past performance does not guarantee future results.
NSE:BSHSLLong
by Mr_Chartist_
WIPRO! SHORT!! Wipro Ltd is a global leader in Information Technology (IT), consulting, and Business Process Services (BPS). It ranks as the fourth largest Indian player in the global IT services industry, following TCS, Infosys, and HCL Technologies. Sales Growth: Over the past five years, Wipro has experienced a relatively poor sales growth of 8.75%. Dividend Payout: The company has maintained a low dividend payout ratio of 12.2% of profits over the last three years. Technical Analysis: Bearish Engulfing Candlestick Pattern: A bearish engulfing pattern formed at the top in Weekly Timeframe, indicating a potential reversal in the stock's down trend. Entry : @ 300 to 305 Range for shorting Stop Loss : 315 Target : 285 to 275 ++ Strategy: One can take 300 PE FEB month Expiry or Short the Future. Let me know what you think about this analysis. Happy Trading!
NSE:WIPROShort
by Vikrant_Mighty
2
#SRF - Potential STAGE 1 Break Out (Multi Year Consolidation)📊 Script: SRF Key highlights: 💡⚡ 📈 STAGE 1 - Accumulation formation in Weekly chart. 📈 Price gave a good up move, then went Side Ways 📈 Multi year Price consolidation 📈 Multiple Inside Bars formed in Daily chart 📈 Enter on BO when spike in Volume is seen 📈 MACD Cross Over 📈 One can go for Swing Trade. BUY ONLY ABOVE 2700 DCB ⏱️ C.M.P 📑💰- 2583 🟢 Target 🎯🏆 – NA% ⚠️ Stoploss ☠️🚫 – NA% ⚠️ Important: Always Exit the trade before any Event. ⚠️ Important: Always maintain your Risk & Reward Ratio. ✅Boost, Like and follow to never miss a new idea! ✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat 🔁 Happy learning with MMT. Cheers!🥂
NSE:SRFLong
by MMT_MakeMoneyTrading
1
SRF Ltd showing bullishness after a long consolidation.SRF Ltd is trading above the trading range and there are chance of the stock travelling forming new highs. The stock has been consolidating in a range for over 3 years and finally the stock has closed above the resistance zone on the daily time frame. In today's session the stock has move more than 6% and in current week it move 10% (approz). After consolidating in a 40% range for a long time, there are chance the stock can test 4600-4700 levels this year. Target levels :- 4692 Stop Loss :- 2480 Entry can be made once the stock retest the break out zone (around 2750-70). Wait and watch for price action near the zone and trade accordingly.
NSE:SRFLong
by TheMamboMomentum
JSB - Trend changing ?JSB - CURRENT PRICE : RM0.485 After finished its downtrend phase, the stock moves in sideways for 3 months (from OCTOBER 2024 until JANUARY 2025). Recently the share price starts to climbing up indicating some bullish scenario. However after a bad news related to the company published, the stock made a falling window (GAP DOWN) on 23 JANUARY 2025. Last Friday the stock managed to recover from the recent sell off and closed as a BULLISH PIERCING LINE. This shows that there is still buying interest in this stock. Based on JAPANESE CANDLESTICK CHARTING TECHNIQUES, falling window may acts as strong resistance level. In this case, RM0.500 may considered as a critical resistance level for this stock. As such, a breakout above RM0.500 , technically will trigger a buy signal at RM0.505 for CANDLESTICK traders. In conclusion, it is a pending breakout stock. ENTRY PRICE : RM0.505 TARGET : RM0.550 , RM0.595 STOP LOSS : RM0.465 (the low of BULLISH PIERCING LINE)
MYX:JSBLong
by IMRAN_96