Get started

Candlestickpattern

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
Moods of Candlesticks 🎚How do you read a candle? The top or bottom of the candle body will indicate the open price, depending on whether the asset moves higher or lower during the selected timeframe. If the price trends up, the candlestick is often either green or white and the open price is at the bottom. viceversa if price trends down. Why Candlestick is important? They indicate market turning points early and estimate the direction of the market. Overall, Candlesticks provide unique insights. They display reversal patterns which cannot be seen in other types of charts. They can be used in all kinds of markets. Detailed Explanation :- Real Bodies Each candlestick is composed of a real body and two wicks (which are also called shadows or tails). The real body is the substantial part of the candle. It reflects the difference between the open and close price for that period. The open and close prices are the first and last transaction prices for that time period. When there is no real body or the real body is very small, it means the open and close prices were the same or almost the same. The real bodies are typically one solid color, though they may also be hollow, with only their edges displaying a color. Their coloring depends in part on the color scheme used by your charting platform, but white/black and green/red are commonly utilized. A white or green candle means the price finished higher over that time period. Because the closing price is higher than the open price, the bottom of the real body represents the open price and the top of the real body represents the close price. A black or red candle means the price finished lower over that time period. Therefore, the top of the real body is the open price and the bottom of the real body is the close price for that time period.​ Wicks or Shadows The wicks or shadows—the thin lines above and below the real body—represent the movements above and below the open and close prices. The highest part of the wick on top of the real body marks the high price for that period. If there is no upper wick, then the top of the real body was also the highest price during that period. The lowest part of the wick on the bottom of the real body marks the low price for that period. If there is no lower wick, then the bottom of the real body was also the lowest price during that period. The difference between the high and low prices is the price range for the period.
Education
by sankhyainvestments
23
Three Black Crows Candlestick Pattern ??Nifty Made a three black crows pattern/ pattern activated after today low break. 1) What is Three Black Crows Pattern ?? Three Black Crows got its name from its resemblance to three crows looking down from their perch in a tree. This signal, occurring after a strong uptrend, indicates the crows looking down or lower prices are to come. Each of these candles should close very near the low for the day. This pattern, as will be seen, is the opposite of the Three White Soldiers. 2)Criteria- 1. Three long black bodies occur, all of nearly equal length. 2. The prior trend should have been up. 3. Each day opens within the body of the previous day. 4. Each day closes near its low. 3) Pattern Psychology- *After an uptrend a long black candle forms. The uptrend has now reached levels where the sellers have started to step in. The first long black candle body is followed by two more long black bodies. Each having opened in the previous day’s body indicates that buying was occurring early each day but the bears kept forcing prices down by the end of the day. This more consistent process of selling provides a stronger downtrend potential versus a rapid overselling period. (See Nifty chart ). Kindly Let me Know if You have any question.
NSE:NIFTYEducation
by PrasantaP
2
Raising Three CandleUsually type of pattern formed in all scripts in 5 mins time frame. Rule: 1 - First candle should be bullish candle. Rule: 2 - next 3 to 4 candles should be bearish or doji or bullish ( not closing above previous candle) Rule: 3 - 3rd or Fourth candle should not close below 1st candle. if so the next candle will be bullish candle. Entry point will be 1 candle open price.. stop loss is 50 percent of the 1st Bullish Candle. (or) If the 3rd candle closed below the 1st bullish candle, wait for next candle. if next candle is bullish candle and the same closed above the first candle. Then take the entry.. Stop loss will be 50 per or 75% of the first candle. if next candle closed below the first candle then the pattern will be invalid.
NSE:NIFTYEducation
by Varthagam-Seivom
5
Inside Candle Strategy using the 20MA (BANKNIFTY)This strategy does not work 100% of the time, but it does offer a good risk reward ratio. If the pattern occurs in the first 15 min, wait for about an hour and observe the price action, and take a trade only after the breakout. Taking a trade too early may result in your SL getting triggered too soon. You want to try and make it harder for the market to trigger your stop loss, hence you should set it just above important levels and not exactly on them.
NSE:BANKNIFTYEducation
by ArcherDAVIS
3
Candle Speak it ALL...no rocket science...MAking trading simple.Speaking Candles: This is a 15 chart of Nifty Bank last Friday session as on 9/8/19. Candles are so accurate when they try to tell us the next upcoming move. So, here we will discuss the candle formation marked in the red coloured box. The first candle is green with a small wick and also closed above last 3 days high. Now why the immediate candle is red. The big scalpers booked profit here and it has a tail which tells us that index is rejecting the down prices. It also means the index deserves much higher rate as of today. Now, lets come to the 3rd and the 4th candle, again both having wicks and one can assume lower price rejection. So hold the longs since morning. Here the 5th candle touches the Daily R1 but has heavily seen buying and closed above R1, Still staying long in the market. Now please observe minutely, 6th and 7th candle. One with a wick is green and one with a tail is red. Here starts the tug of war between the Bulls and Bears. Now 8th and the 9th candle went up as the 7th candle showed lower price rejection. 10th candle again showing lower price rejection which helps the candle 11, 12, 13 and 14 touch the higher resistance. Now think the reverse, we have started getting wicks with the resistance approaching near forming tiny indecision candles at the day's high. What next? Wait for a signal??? Yes indeed. Look at the 17th candle its a dozi and that too at days high and touching the resistance the 4th time. Second confirmation is: look at candles 14 -17. All having wicks near the resistance. So, now one can initiate a Short trade with the SL of the above Green dotted Line. How beautiful the candles speak with us. We just need to understand their language. Max. 2 trades in Index per day are more than enough. Don't over trade.
NSE:BANKNIFTYEducation
by abhijitgujarathi15
2
Price Action Lesson 7: Conditions of a Perfect Shooting StarConditions of a Perfect Shooting Star: . Body is short. . The height of the candlestick (the difference between high and low price) is tall enough and it's more than the Daily ATR(264). The taller the Candlestick is, the stronger the Shooting Star . . The upper shadow (also known as upper wick or tail is the distance between the high price and the close or open price, whichever is higher) should be very tall, over than 75 percent of the Daily ATR(264) is better. . The lower shadow (also called bottom wick or tail is the distance between the low price and the close or open price, whichever is lower) is nonexistent or very short. It should be less than 25 percent of the Daily ATR(264). . The Shooting Star with the bearish body is stronger than the one with the bullish body. . The picture shows a perfect Shooting Star candlestick . As seen, the height of the candlestick is tall, but the body is very short. Also, the upper shadow is very tall and the lower shadow is very short. . The close price is lower than open price, therefore the body of this Shooting Star is bearish , and the strength is very high.
COINBASE:ETHUSDEducation
by ForecastCity_EU
1
RECLTD : Hanging Man!!Marked on the chart are identified Hanging Man candlestick pattern, we'll wait for confirmed weekly closing below same & step-in for opportunities. if you have any queries regarding above idea or any other stock feel free to D'M Announcement : Recently we launched, TruStox Community a community driven platform for Traders with almost all features that a trader needs. Here are some of them:- Trade assisting Tech. Regular Study Conferences. Collective Fundamental Research. Access to Tools from Trader's Toolkit. & many more. For More information : Click Here! Note : Trading in any financial market is very risky. We post ideas for educational purpose only. It is not financial advice. Do not hold us responsible for any potential loss you may incur. Please consult your financial adviser before trading.
NSE:RECLTDEducation
by TruStox
Auropharma – 831 to 750 - A crack!Auropharma – 831 to 750 What a crack! Risky Traders – get ready to lose 4-5 points and gain 50+ points – closing statement in the video idea – “Once bitten twice shy” as of 4th Dec 2018. If the stock moves in line as you expected giving us an exact entry as well to be precise 825-827 zone when it closed overnight at 821 levels has to be dream come true scenario for an analyst. Flashback Overnight (As of 4 - 6th Dec 2018) , Auro was moving within rising wedge –a common term used by traditional analyst until I came to know about wave analysis where the same structure was termed as “ending diagonal” – a overlapping structure which indicated that the upward structure could be ending soon. Rising Wedge When a financial instrument (which could be stocks, forex, commodities, bonds etc,) price has been rising over time, trendlines drawn above and below the price chart pattern can converge to show a potential reversal point at a peak. This reversal point can indicate a bearish price point signal in which the security’s price is subsequently expected to reverse lower. In our case the peak was 831 High and we got excellent selling opportunity close to the peak at 825-826 zone – High was 826.70/826.80- rest is the history Target achieved – 794 as suggested over the video with small pause and breaks at 815 -810 zone. This pattern is used by traditional analyst and wave analyst Books – Technical Analysis -Edwards and Magee ,Wave Analysis - Frost and Prechter Polarity Reversal = History Repeats What happens is that history essentially repeats itself, but the role of price at that level changes from resistance to support and vice versa. Polarity Reversal concept explained in my favorite book which was the first one I referred for the journey of technical analysis written by – Edwards and Magee. Important Polarity Reversal zones in last week 790-792 777-775 Candlestick Analysis Evening Star – 3 candlestick pattern as suggested in the book – Candlestick Analysis by Steve Nison Steve Nison – Father of Candlestick Analysis. Book – Candlestick Analysis by Steve Nison Harmonic Analysis Bearish Crab - Excellent Harmonic Structure occurring at 831 was an amazing clue Book - Harmonic Analysis by Scott Carney Trendline / Channels Book – Technical Analysis by Edwards and Magee is the reference book. Financial Astrology Term used by financial astrologer- “Retrograde” was also updated in previous video idea of the Nifty Index – “Mercury, Markets and Mayhem below 10800” – Mercury retrograde runs till 6th Dec 2018 – if you haven’t gone crazy – don’t worry market will make you crazy. Note- As updated/suggested on 29th / 30th Nov 2018 in last Nifty Video Idea comment section –we expected to be cautious from 10950-11000 zone which was danger zone What type of analyst are you? You just had to pick and execute –rest you were bound to enjoy the markets. Finally, It was kaka’s blessing directly from Bollywood (Kaka – Late Rajesh Khanna) – stands out to be real tribute to this Bollywood actor in the creative way (audio clip) as updated in last video idea. Thanks.
NSE:AUROPHARMAEducation
by WaveTalks
27
Nifty 50 ( BULLS Vs BEARS) Daily Chart candlestick AnalysisNifty -0.14% index opened gap up Last week on Friday but witnessed some selling at higher levels and corrected towards 10451 zones. It formed a Spinning Top candle on the daily scale which means that bulls are not loosening their grip but 1st Time bears are putting pressure at their Strong Zones which was expected. It has been making higher highs from last ten consecutive trading sessions Now if it negates this formation, then only a pause in positive momentum could be seen. It closed the week at a crucial 10480 zones and a decisive hold is required to extend its up move towards 10496 then 10562 while on the downside supports are seen at 10425-then 10390 levels. What would BEARS Do in his Next Attack on BULLS??? Stay Connected for more Fight Analysis of ( BULLS Vs BEARS) Please Like, Share, Comment, Follow your Views Thank you, God Bless You Sachin
NSE:NIFTYEducation
by Sachin_Ghodke
1
Nifty50 ( BULLS Vs BEARS ) Daily Chart'Nifty index opened Gap down breaching previous Lows of 10077 and made new low 10049 in near psychological 10000 support area , sustained buying pressure from lows near about 100 point rally up to 10155 recovers Bulls in Action and tried to stand still against bears positively. Bears Tried to drag down Bulls in last Session but Bulls managed to Hold the Fight settled down. Nifty50 Index on daily chart formed inside Bullish Candle but not surpass the Engulfing pattern near Previous Swing Lows with 200DMA support. Now if Bulls lift up with its power with yesterday recovery then the hurdles for index are 10168-10198-10222 zones and supports at 10090-10035-9990 Please Like, Share your Views Thank you God Bless You Sachin
NSE:NIFTYEducation
by Sachin_Ghodke