Saturday, 26 December 2020

EVENING STAR


✍Evening star pattern made by three or more candle closing at the end of uptrend. 

✍At the end of uptrend a small candle or doji forms in it. This is an highly reliable candle formation which can find out potential top of the trend.

✍The weitage of the candle should be given to shadow or body whichever is more.

✍The trade has to be taken on the closing basis of all three candles and the high of small candle has to be taken as stop loss. 

✍At the top it may form one or 2 small candle, but the body of the candles should be small in size and the stop loss has to be taken on the high of both candles.

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MORNING STAR

 










✍Morning star pattern forms with 3 candlesticks which have a small star at the bottom and the bearish and bullish candle.

✍Morning star is trend reversal candle which indicates there should be a proper trend before the candle.

✍This candle forms at the end of downtrend. The small candle formation after the large bearish candle can be any colour or can be DOJI. 

✍The third bullish candle forms after the small candle is the indication that the downtrend is over and the new bull phase is going to start. 

✍The trade has to be taken after the closing of all three candles and the low of small candle should be put as a stop loss.






✍As per shown in the above image the morning star pattern has formed at the end of downtrend and the new uptrend has started after it.

✍The morning star pattern is highly reliable pattern after the proper closing of price takes place.


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Friday, 25 December 2020

BEARISH ENGULFING CANDLE

 













✍Bearish engulfing candle forms as a trend reversal candle at the end of uptrend. It covers the previous candle upside with the single move. It may cover one or more candles previous to it.

✍Engulfing candle has a great way to assume a potential bottom or top in the market

Only bars that form on the hourly time frame or higher should be considered.

✍The engulfing candle confirms after the red candle closes. The red candle formation after the bearish engulfing candle the trend reversal is confirmed.

✍After the confirmation of trend reversal the trade has to be taken by putting high of the engulfing candle as a stop loss for it.

✍The engulfing candle is highly reliable pattern like marubozu candle.







✍As shown in the above imageπŸ‘† the bearish engulfing candle has formed and the trade has to be taken after the bearish candle formation after it.

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BULLISH ENGULFING CANDLE

 BULLISH  ENGULFING  CANDLESTICK













✍Bullish engulfing candle forms after as a trend reversal candle at the end of downtrend. It covers the previous candle downside with the single move. It may cover one or more candles previous to it.

✍Engulfing candle has a great way to assume a potential bottom in the market

Only bars that form on the hourly time frame or higher should be considered.

✍The engulfing candle confirms after the green candle closes. The green candle formation after the bullish engulfing candle the trend reversal is confirmed.

✍After the confirmation of trend reversal the trade has to be taken by putting low of the engulfing candle as a stop loss for it.

✍The engulfing candle is highly reliable pattern like marubozu candle.









✍The trend reversal candle itself says the trend has to be their before the candle forms. If the candle is forms in between the trend then it may act as a trend continuation candle.

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TRIPLE BOTTOM PATTERN

What is a Triple Bottom?  ✍A triple bottom is a bullish price pattern used in technical analysis that is identified by three same level lows...