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Candlestickpattern

WaveTalks- Nifty: Piercing Candlestick PatternWhat Is a Piercing Pattern? ----------------------------------------------- A piercing pattern is a two candlestick price pattern that marks a potential short-term reversal from a downward trend to an upward trend. This candlestick pattern is applicable in any time frame but produces better results on a higher timeframe. The pattern includes the first session opening near the high and closing near the low with an average or larger-sized trading range. It also includes a gap down after the first session where the second session begins trading, opening near the low and closing near the high. -------------------------------------------- Important Pattern Criteria -------------------------------------------- The 2nd session close should cover at least half or 50% of the 1st session candlestick. Getting 50% & above closing into the 1st session indicates- bulls have taken control of the session. ----------------------- Stop Loss ----------------------- Stops should be maintained below low of the candlestick in 2nd session. In current situation – 17587 -------------------------------- Critical Zone -------------------------------- 17590-17600 was discussed in last video idea published as running comment. If critical zone holds then Index has fair chances for a new all-time high once again. ----------------------- Target ----------------------- Target 1- 17700 & Strictly Holding Above 17700- We can expect 17790+ for another new ATH (All-Time High) as Target 2. ---------------------------------------------------------------------------------------------------- Last Video Idea Published on 16th Sep2021- WaveTalks: Nifty- On Cloud Seven ----------------------------------------------------------------------------------------------------
NSE:NIFTY
by WaveTalks
23
Price Action and Fibo SetupStock have given breakout with above avg. volume. The candles which have formed in last few sessions are bearish but looks weaker as there is continues decrease in volumes. This means sellers are not that powerful at these levels now. While using Fibonacci, applying top to bottom, I see that it have tested 0.61 level. Which means there's high probability of trend reversal. Yes, it's strong fibo resistance and hard to break it with first attempt. It did took resistance and now retraced. This small pullback can generate a good potential to break the resistance. Also bullish engulfing at bottom. These are the multiple points that I saw. This is risky setup cause 1) it's very smallcap 2) Not very good breakout candle. This analysis is done by me, all on my own. This post is for information purpose only, don't consider it as call. Just sharing what I see on charts.
NSE:LIKHITHALong
by AkshayAdak
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 AxeCap007
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