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Oscillators

'Verse' of 'Reverse' Candlestick Pattern-> Definition of Reversal patterns :- Reversal patterns mean the formation of candlesticks which indicate the end of the existing trend (uptrend or downtrend). When such formation appears in a downtrend, it indicates a bullish reversal or end of selling spree and onset of buying spell. Conversely, when a trend reversal pattern forms in an uptrend, it warns traders of a possible end to bullish run and onset of a slump. Candlestick patterns are visual patterns, helping traders to visualize when market sentiment is shifting, which is why many traders prefer candlestick charts over other trading tools. However, any trend reversal indication must conform with other popular technical trading tools. -> Engulfing Patterns :- An engulfing pattern is a two-candle formation that signals trend reversal, and hence, there are bullish engulfing and bearish engulfing. The bearish engulfing happens in the uptrend. The first candle is a white/green candle that forms in the uptrend. The second candle opens higher than the previous session and then closes below the previous. It indicates that the bullish force made a final thrust before bearish forces took over. The opposite of bearish engulfing is bullish engulfing, and it appears at the bottom of a downtrend. ->Doji :- Doji is a unique formation – a candle with no real-body but with shadows. Doji can take many forms like Doji Star, Dragonfly Doji, Gravestone Doji, Long-legged Doji, and more. It is often associated with market indecision before a trend reversal. Apart from Doji star, Dragonfly Doji and Gravestone Doji also indicate a trend reversal; but to base your trading decisions on them, those must concur with other popular trading tools like moving average, RSI, or moving oscillator. Doji formations often have no real-body, means that the opening and closing price is almost the same, or the market has reached an equilibrium where neither the buying not the selling strengths are strong enough to give it a direction. -> Abandoned Baby :- Apparently, an abandoned baby is a more decisive trend reversal pattern than Doji. It is a rare formation, but when it appears, it is a strong enough indication for traders to alter their position accordingly. Since it is a trend reversal pattern, an abandoned baby can appear in both uptrend or downtrend. An abandoned baby is a Doji star that appears between two candles – the first one appearing in the direction of the trend and the second confirmation candle appearing in the reversed trend, either bullish or bearish. The shadow of the first candle mustn’t overlap the second candle. The star appears above or below the trend, looking abandoned, hence the moniker. -> Hammer Pattern :- Hammer is a single candle pattern that appears in a downtrend implying a trend reversal to bullish. It usually has a small real-body and a long downward shadow. It indicates that the market fished for the bottom but eventually buying forces were strong to push the market up – the result is a bullish or green candle comprising a short real-body. The candle appearing next to the hammer must confirm the trend reversal to form a trading strategy. It must close above the last candle formed before the hammer. The opposite formation of a hammer, an inverted hammer which appears in an uptrend, is also a trend reversal pattern. In this case, the color of the hammer doesn’t matter, but the upper shadow is twice the size of its real body. An inverted hammer requires stronger confirmation candles to ascertain trend reversal. Another similar formation that appears in the candlestick chart is called a hanging man. It is a hammer that appears in uptrend. When the hanging man appears after a rally, it indicates a trend reversal. It needs further confirmation from the following candles appearing in the trendline. If those appearing in a downtrend, the hanging man confirms a downward trend reversal. -> Piercing Line :- A piercing line is a two-candle formation – a bearish long-bodied candle and another bullish candle which opens at a gap and closes at the midway of the bearish candle. Both candles have robust long bodies. It shows that the market started in bearish impulse, but eventually, buyers gained momentum to pull the market up and reserve their position. -> Harami Pattern :- Harami patterns are common and can be both bullish harami and bearish harami. In Japanese, the word translates to pregnant. It is a two-candle formation where the second candle is a small-bodied candle that opens and closes within the body of the first candle, representing a pregnant form. In the case of Harami Cross, the second candle is a Doji star. A Harami is a reversal pattern, but it isn’t as strong as the hammer and needs confirmation from other technical trading tools like RSI, MACD, and the like. My OBSERVATION :- These reversal patterns works very well when used with RSI, In case of indices, when RSI is above 65 or below 35 any such pattern visible indicates reversal and In case of stocks, when RSI is above 70 or below 40 any such pattern visible indicates reversal.
Editors' picks
NSE:NIFTYEducation
by Chaser30
64
ITC - The Rise....ITC the 'rising giant' is showing its heroic move with very much similarity as the 'Puspha' character, who was misunderstood in the movie as inefficient man and same here 'ITC' was assumed as slow mover but now it has changed everyone mindset with a strong move. ITC has formed rising three method pattern in daily charts after a breakout which is a positive signal. ITC has given a weekly breakout above 263 which was a strong resistance. Both RSI and MACD supporting the up move . Weekly RSI :- Daily RSI :- Though ITC is trading in a channel but it seems that this time it could break the channel. #Enjoy_trading
NSE:ITCLong
by Chaser30
NIFTY ANALYSISNIFTY on 30-03-2022 Supported by Global Cues and reduced Prices of Crude Oil NIFTY began the session with Gap Up and Profit booking observed as soon as the market opened. NIFTY took support near its first support level i.e. 17360 and bounced back to continue its northward journey towards 17500. BANK and AUTO emerged to be the greatest contributors with +1.36% and +1.21% while profit booking was observed in METAL (-2.17%). NIFTY closed at 17498.25 after making a day high of 17522.50. Technical View: NIFTY has made a hanging-man like candle on Daily chart which is a reversal signal . NIFTY is making Higher High Higher Lows formation. NIFTY is moving above EMA 13, 21 and 34 which reflects the short-term trend is Upward. RSI at 60 reflects the index is in bullish momentum. There is positive cross-over in DMI which signals the NIFTY may continue its northward journey. Support and Resistance: DAILY CHART The gap between yesterday’s high and todays low will act as Strong Support for NIFTY i.e. 17387-17235. On higher side 17525-17625 will act as resistance. If this level is crossed and sustained NIFTY will march towards 17775. View for Traders: The signals coming from technical indicators are mixed as RSI, DMI and EMA signal the strength and intact uptrend while on the other hand the candle formed at the end of the day tells a different story. Under such circumstances it becomes difficult to conclude and present the most appropriate strategy to be adopted by trader. However, analysing the current situation under following heads may offer us some substantial conclusion: 1. Russia-Ukraine News Though Russia has announced to withdraw its forces from Kyiv many Strategic Experts are of the view that this is a strategical step by Russia. Hence, the impact of the News is NEUTRAL. 2. Crude Oil Price The price of Crude Oil has increased. Hence the Impact is NEGATIVE. 3. The buying by FIIs The Net buying is ₹1357.47 Cr. Hence, the impact is POSITIVE. 4. Technical Parameters Indicators are showing the Probability of further gains while formation of Hanging Man candle signals reversal. Hence the impact is “ NEUTRAL”. 5. Global Markets DJI and S&P 500 both are down -0.41% and 0.75% at the time of writing this blog. Hence, the impact is NEGATIVE. Hence, there are 2 Neutral, 2 Negative and 1 Positive factors. Summing these all up it is recommended to buy NIFTY at its crucial support level i.e. 17250-225 for a target of 17360 and 17444 with SL of 17150.
NSE:NIFTY
by VipulCIL
4
Breaking Trend line and with strong RSI level, Long(Swing Trade)Yellow lines are for weekly chart and blue for daily chart Freshly broken the trend line and is about to enter the support resistance zone (according to me) if it sustain the position above 65 there is a good chances for long position with Stop Loss of 61.5-61 which ever suits you best and out target would be 72-72.50 well its up to you where you wanna book profit as there will be some resistance around 68-69. and we can clearly see double bottom W pattern which is a good sign, second target to keep in mind will be 76+ if it gives us the break out. lets see what happens in next few days. i will learn somethings from you and you might learn something from me. Note: I Dont have mastery in technical analysis , do your own Analysis as well i am just sharing my view. I'm open to new ideas and flaws in my analysis, so please do comment and share your Views. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial adviser before taking any trade. Thank You
NSE:BHELLong
by The1Light
2
short zeel Short zeel at 302.50 target 297 strategy rsi over sold slope declining time for profit booking pullback use only small qty its a over positive and stock is also in news so dont wait too much book profit and get out !!!! i've just took a small trade as experimental trade !!!!! Lets see hope this works Good a from data no stock ended the market more than 15 % only happened when covid recovery taking this trade from my machine learning A.I data driven approach like aladdin used by blackstone hedge fund company !!! more over they use for options with extreme capital !!! Don't take trade its for my A.I data driven approach slope which actually represent the rate of change with respect to time taken , more calculus approach !!!
NSE:ZEELShort
by arunprashanth888
1