Candlesticks pattern and it's types

 

CANDLESTICK CHARTS:

•        Candlestick charts originated in Japan.

•        Candlestick charts are technical analysis in the stock market.

•        Price moves with two different colors, one is green(bullish) and another one is red(bearish)

•        candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price.

•        Approximately there are 20 candlesticks form in per month.

 

UNDERSTAND THE CANDLESTICKS PATTERN:

 

 

TYPES:

1.      HAMMER:

·        The buyers are pushing the market for capture.

·        The hammer is only formed in the support level. Some time there are formed in the middle of the chart and resistance level but there is no value.

·        The hammer should be green or red does not matter.

·        Once hammer is formed there is bullish are back in the market, the follows the uptrend.

 

2.INVERTED HAMMER:

 

·        Inverted hammer is formed only in the resistance level.

·        Inverted hammer is indicating the sellers will be holding the market.

·        This hammer should be green or red does not matter.

·        Once the inverted hammer is formed the seller are back in the market, the market follows the downtrend.

 

3.PIERCING LINE:

 

                                                                                                                                        

·        Firstly, the sellers are holding the market.

·        The buyers push the market to get the control.

·        The opening with low price and end with previous candle more than 50% and the draw the line name is called piercing line.

 

4.BULLISH ENGULFING:

·        Firstly, engulfing means overtaking.

·        It’s formed by two candles; Bullish engulfing means the bearish market followed and the buyers are coming to the market to push the price value to uptrend.

·        Bullish engulfing indicates buyers are back in the market.

 

5.BEARISH ENGULFING:

 

·        Firstly, engulfing means overtaking.

·        It’s formed by two candles; Bearish engulfing means the bullish market followed and the sellers are coming to the market to push the price value to downtrend.

·        Bearish engulfing indicates sellers are back in the market.

 

 

5.DOJI:

 

 

 

·        Doji means indecision, when the doji is formed in the charts their market is indecision and the buyers and sellers are almost the same level. In other words, the sellers and buyers are pushing the market equally.

·        Long-Legged: This doji reflects a great amount of indecision about the future direction of the underlying asset.

·        Gravestone: The long upper shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the low of the day.

·        Dragonfly: The long lower shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the high of the day.

 

6.MORNING STAR:

 

 

·        The morning star pattern formed in three candlesticks.

·        This pattern indicates the bullish market.

·        Firstly, the bearish candle and forming doji and wait for confirmation and the green candle is formed they called morning star, the market followed uptrend.

 

7.EVENING STAR:

·        The evening star pattern formed in three candlesticks.

·        This pattern indicates the bearish market.

·        Firstly, the bullish candle and forming doji and wait for confirmation and the red candle is formed they called evening star, the market followed downtrend.

 

8.HANGING MAN:

·        The hanging man indicates the sellers are back in the market, the market follows the downtrend.

·        This pattern is formed in the resistance level moreover this pattern form in the middle or support level is not valid or not considered.

·        This candle is red or green does not matter.

 

9.BULLISH HARAMI:

·        Firstly harami means pregnant.

·        This pattern first form bearish candle and the followed by small bullish candle.

·        This candle looks like mother and child.

·        This pattern represents the uptrend and buyers are dominate the market.

 

 

10.BEARISH HARAMI:

 

·        Firstly harami means pregnant.

·        This pattern first form bullish candle and the followed by small bearish candle.

·        This candle looks like mother and child.

·        This pattern represents the downtrend and sellers dominate are the market.

 

11.THREE WHITE SOLDIERS:

 

This pattern formed three bullish candles and the continuously three days are ruled the market by buyers.

 

12.THREE BLACK CROWS:

This pattern formed three bearish candles and the continuously three days are ruled the market by sellers.