Free Securities Market Technical Analysis Course in Telugu Day 12 – Candlestick Patterns
In the olden days, the Japanese utilized to make use of Candlesticks to trade Rice. But, Steve Nison discovered the secret techniques of Japanese Candle holders. In Candlestick Charts, we can locate some Patterns what provide us the previous intimation whether to go Bullish or Bearish. Those Patterns will certainly develop with Solitary Candle, 2 Candle Lights and Three Candles as well as Multiple Candles additionally.
Solitary Candle Patterns:
When opening up & shutting prices are almost equal that Candle light is called "Doji".
When shadows are bigger than the real body that is called Spinning Top.
In an extreme uptrend, if Spinning Top shows up, it is a Market (Turnaround) Signal.
In an extreme drop, if Spinning Top shows up, it is a Buy (Turnaround) Signal.
Keep in mind: Over 2 Problems request all Patterns.
Colour is not important for Spinning Tops.
When there are no shadows that candle light is called Marubozu.
In an extreme uptrend, if Black Marubozu appears, it is a Sell (Reversal) Signal.
In a severe drop, if White Marubozu appears, it is a Buy (Turnaround) Signal.
In a drop, a candle with greater than dual darkness than the real body & lengthy shadow below actual body is called Hammer.
In an uptrend a candle light with more than double shadows than real body & prolonged shadow below actual body is called Hanging guy.
Upside down Hammer:
In a severe drop, a candle light with greater than double darkness than genuine body & prolonged shadow over the actual body is called "Inverted Hammer".
In an uptrend a candle with more than dual darkness than genuine body & extensive shadow above the actual body is called "Capturing Star".
Dual Candle Patterns:
In an extreme downtrend, a large Environment-friendly Candle light developed followed by a little Red Candle is called Bullish Engulfing Pattern.
In an extreme uptrend, a huge Red candle developed complied with by a tiny Eco-friendly Candle is called Bearish Engulfing Pattern.
Tweezer Bottoms & Tweezer Tops:
In an extreme downtrend, 2 equal Spinning Tops are developed is called Tweezer Bottoms.
In an extreme uptrend, two equivalent Spinning Tops are formed is called Tweezer Tops.
When 2 Marubozus formed instead of Spinning Tops, is called "Railway Track".
In an extreme downtrend, Railway Track is developed is a Strong Buy Signal.
In a severe uptrend, Train Track is developed is a Solid Sell Signal.
Three-way Candle Patterns:
Early morning Celebrity:
In a severe sag, the initial Candle light is lengthy Red, the second Candle is either Spinning Top or Doji, the third Candle is Eco-friendly & closes above 50% of the very first Candle light.
In an extreme uptrend, the initial Candle is long Green, the second Candle light is either Spinning Top or Doji, the third Candle light is Red & closes listed below 50% of the initial Candle.
3 White Soldiers:
In an extreme drop when 3 Environment-friendly Candles developed is called 3 White Soldiers.
3 Black Crows:
In an extreme uptrend when 3 Red Candles created is called as 3 Black Crows.
3 Inside Up:
In a severe drop, the first Candle light is long Red, the second Candle light is Environment-friendly closed 50% over the very first Candle light & 3rd Candle light is Green & close over the initial Candle's Opening Price.
3 Inside Down:
In an extreme uptrend initial Candle light is long Green, the second Candle is Red closed 50% listed below the very first Candle & the 3rd Candle is Red & close listed below the initial Candle's Opening Price.
1. Most of all Patterns reveals Pattern Reversals.
2. Always take into consideration these Patterns, when you locate them at extreme Up or Down only.
Don't take your trading decisions only based on these Patterns. Search for Support/Resistance levels and then just trade according to the Pattern.
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