TRADING

BOOTCAMP

BOOTCAMP
 CLASS OUTLINE
Section1 Section2 Section3

Single Double Triple

Candlestick Candlestick Candlestick
Q&A Q&A
Pattern Pattern Pattern

Note:
1. Have a pen and paper to note down important concepts
2. Message your questions in the chat and Arvind will ask during the QnA session.
3. Study Material will be shared in the WhatsApp group.
 JAPANESE CANDLESTICK

Upper shadow/wick O Opening price

H Highest price
Real Body
L Lowest price
Lower shadow/wick
C Closing price
 BULLISH CANDLE

H Close > Open

Demand > Supply

C
Bull > Bear

O Buying Interest > Selling Interest

L
Winner : Bull
 BEARISH CANDLE

H Close < Open

Demand < Supply

O
Bull < Bear

C Buying Interest < Selling Interest

L Winner : Bear
 DOJI CANDLE
No Real Body
H
Inconclusive Interest

C O Doji is a warning signal it

indicates that the current trend
may change, it does not indicate
L
trend reversal. It is like a warning
sign board which says "Be
Cautious, trend may change" .
 DOJI CANDLE

Likelihood of reversal with the emergence

of doji increases if:

1.Subsequent candles confirm the doji's

reversal potential.
2. The market is overbought or oversold.
3. The market does not have many doji
HAMMER
1 CANDLESTICK PATTERN
PATTERN : UMBRELLA-HAMMER

Action : Buy | Stop Loss : Low of Hammer

PSYCHOLOGY OF HAMMER
 PROPERTIES OF HAMMER

Downtrend/fall in price.
No or very small upper shadow.
Lower shadow should be at least two to three
times of real body.
Real body size should be small.
Colour doesn't matter.
HANGING
MAN
1 CANDLESTICK PATTERN
PSYCHOLOGY OF HANGING MAN

R/G

C Close below
real body

Action : Sell | Stop Loss : Highest High

 PATTERN : HANGING MAN
200
199

196
194 Close below
real body

188
Expected fall
Rise in price in price
PROPERTIES OF HANGING MAN
Uptrend/rise in price.
No or very small upper shadow.
Lower shadow should be at least two to three
times of real body.
Real body size should very small.
Real body colour does not matter.
2nd candle should close below the real body of
1st candle.
SHOOTING
STAR
1 CANDLESTICK PATTERN
 PATTERN : SHOOTING STAR

Action : Sell | Stop Loss : High Of Shooting Star

PSYCHOLOGY OF SHOOTING STAR
PROPERTIES OF SHOOTING STAR

Uptrend/rise in price.
No or very small lower shadow.
Upper shadow should be atleast two to three
times of real body.
Real body size should be small.
Colour doesn't matter.
INVERTED
HAMMER
1 CANDLESTICK PATTERN
PATTERN : INVERTED HAMMER

Close above
C
real body

R/G

Action : Buy| Stop Loss : Lowest low

 PSYCHOLOGY OF INVERTED
HAMMER
Expected Rise
in price
200

Fall in price Close above

196
real body
194
R/G
192
191
PROPERTIES OF HANGING MAN
Downtrend/fall in price.
No or very small lower shadow.
Upper shadow should be atleast two to three
times of real body.
Real body size should very small.
Real body colour does not matter.
2nd candle should close above the real body of
1st candle.
PATTERN : LONG LEGGED DOJI
203
200

Expected fall
Rise in price in price
Action : Sell| Stop Loss : Highest High
PATTERN : LONG LEGGED DOJI

Expected Rise
in price

200
Fall in price

197
Action : Buy | Stop Loss : Lowest Low
PATTERN : DRAGONFLY DOJI
203
200

Expected fall
Rise in price in price

Action : Sell | Stop Loss : Highest High

PATTERN : DRAGONFLY DOJI
Expected Rise
in price

200
Fall in price

Action : Buy| Stop Loss : Lowest Low

 PATTERN : GRAVESTONE DOJI

Expected Rise
in price

Fall in price

200
197

Action : Buy | Stop Loss : Lowest Low

PATTERN : GRAVESTONE DOJI
200

Expected fall
Rise in price
in price

Action : Sell | Stop Loss : Highest High

 CANDLE: BET HOLD LINE

A candle (green/red) having of large real body.

CANDLE: BULLISH MARUBOZU

A candle having open = low & close = high.

CANDLE: BEARISH MARUBOZU

A candle having open = high & close = low.

 CANDLE: SPINNING TOP

A candle (green/red) having of small real body.

 BULLISH
ENGULFING
2 CANDLESTICK PATTERN
PATTERN : BULLISH ENGULFING

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF BULLISH
ENGULFING
 PROPERTIES OF BULLISH
ENGULFING
Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs whole real body of
1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation.
PIERCING
2 CANDLESTICK PATTERN
 PATTERN : PIERCING

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF PIERCING
 PROPERTIES OF PIERCING

Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs more than 50% real
body of 1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation.
 BULLISH
THRUSTING
2 CANDLESTICK PATTERN
PATTERN : BULLISH THRUSTING

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF BULLISH
THRUSTING
 PROPERTIES OF BULLISH
THRUSTING
Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs less than 50% real
body of 1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation
 BEARISH
ENGULFING
2 CANDLESTICK PATTERN
PATTERN : BEARISH ENGULFING

Action : Sell| Stop Loss : Highest High

PSYCHOLOGY OF BEARISH
ENGULFING
 PROPERTIES OF BEARISH
ENGULFING
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle should engulfs whole real body of
1st candle, shadows doesn't matter.
 DARK
CLOUD
COVER
2 CANDLESTICK PATTERN
 PATTERN : DARK CLOUD
CLOVER

Action : Sell| Stop Loss : Highest High

PSYCHOLOGY OF DARK CLOUD
CLOVER
PROPERTIES OF DARK CLOUD
CLOVER
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle should engulfs more than 50% real
body of 1st candle, shadows doesn't matter
BULLISH
HARAMI
2 CANDLESTICK PATTERN
PATTERN : BULLISH HARAMI

Action : Buy| Stop Loss : Lowest Low

PSYCHOLOGY OF BULLISH HARAMI
 PROPERTIES OF BULLISH
HARAMI
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Red/Green candle
2nd candle real body should very small.
2nd candle real body should lies inside of real
body of first candle, shadows of 2nd candle
does not matter.
BULLISH
HARAMI
CROSS
2 CANDLESTICK PATTERN
PATTERN : BULLISH HARAMI
CROSS

Action : Buy| Stop Loss : Lowest Low

PSYCHOLOGY OF BULLISH HARAMI
CROSS
 PROPERTIES OF BULLISH
HARAMI CROSS
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Doji
Doji should lies inside of real body of first
candle, shadows of doji does not matter.
BEARISH
HARAMI
2 CANDLESTICK PATTERN
PATTERN : BEARISH HARAMI

Action : Sell| Stop Loss : Highest High

PSYCHOLOGY OF BEARISH HARAMI
 PROPERTIES OF BEARISH
HARAMI
Uptrend / rise in price.
1st candle = Green candle
2nd candle = Red/Green candle
2nd candle real body should very small.
2nd candle real body should lies inside of real
body of first candle, shadows of 2nd candle
does not matter.
BEARISH
HARAMI
CROSS
2 CANDLESTICK PATTERN
PATTERN : BEARISH HARAMI
CROSS

Action : Sell| Stop Loss : Highest High

PSYCHOLOGY OF BEARISH HARAMI
CROSS
 PROPERTIES OF BEARISH
HARAMI CROSS
Uptrend / rise in price.
1st candle = Green candle
2nd candle = Doji
Doji should lies inside of real body of first
candle, shadows of doji does not matter.
 BULLISH
COUNTER
ATTACK LINE
2 CANDLESTICK PATTERN
 PATTERN : BULLISH
COUNTERATTACK LINE

Action : Buy| Stop Loss : Lowest Low

PSYCHOLOGY OF BULLISH
COUNTERATTACK LINE
 PROPERTIES OF BULLISH
COUNTERATTACK LINE
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle close should almost equal to the
close of 1st candle
 BEARISH
COUNTER
ATTACK LINE
2 CANDLESTICK PATTERN
 PATTERN : BEARISH
COUNTERATTACK LINE

Action : Sell | Stop Loss : Highest High

PSYCHOLOGY OF BEARISH
COUNTERATTACK LINE
 PROPERTIES OF BEARISH
COUNTERATTACK LINE
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle close should almost equal to the
close of 1st candle.
MORNING
STAR
3 CANDLESTICK PATTERN
PATTERN : MORNING STAR

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF MORNING STAR
PROPERTIES OF MORNING STAR
Downtend / fall in price.
1st candle = Red candle
2nd candle = Red/Green candle
2nd candle real body should very small.
3rd candle = Green candle
2nd candle real body should not overlap with
body of 1st and 3rd candle real body, shadows
of 2nd candle does not matter.
MORNING
DOJI STAR
3 CANDLESTICK PATTERN
PATTERN : MORNING DOJI STAR

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF MORNING DOJI
STAR
PROPERTIES OF MORNING STAR
Downtend / fall in price.
1st candle = Red candle
2nd candle = Doji
3rd candle = Green candle
Doji should not overlap with body of 1st and 3rd
candle real body, shadows of doji does not
matter.
ABANDONED
BABY
BOTTOM
3 CANDLESTICK PATTERN
PATTERN : ABANDONED BABY
BOTTOM

Action : Buy | Stop Loss : Lowest Low

PSYCHOLOGY OF ABANDONED
BABY BOTTOM
PROPERTIES OF ABANDONED
BABY BOTTOM
Downtend / fall in price.
1st candle = Red candle
2nd candle = Doji
3rd candle = Green candle
Doji should not overlap with body & shadow of
1st and 3rd candle real body
EVENING
STAR
3 CANDLESTICK PATTERN
PATTERN : EVENING STAR

Action : Sell | Stop Loss : Highest High

PSYCHOLOGY OF EVENING STAR
PROPERTIES OF EVENING STAR
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red/Green candle
2nd candle real body should very small.
3rd candle = Red candle
2nd candle's real body should not overlap with
body of 1st and 3rd candle's real body, shadows
of 2nd candle does not matter.
 EVENING
DOJI STAR
3 CANDLESTICK PATTERN
PATTERN : EVENING DOJI STAR

Action : Sell | Stop Loss : Highest High

PSYCHOLOGY OF EVENING DOJI STAR
PROPERTIES OF EVENING DOJI STAR
Uptend / rise in price.
1st candle = Green candle
2nd candle = Doji
3rd candle = Red candle
Doji should not overlap with body of 1st and 3rd
candle real body, shadows of doji does not
matter
ABANDONED
BABY TOP
3 CANDLESTICK PATTERN
PATTERN : ABANDONED BABY
TOP

Action : Sell | Stop Loss : Highest High

PSYCHOLOGY OF ABANDONED BABY
TOP
PROPERTIES OF ABANDONED BABY
TOP
Uptend / rise in price.
1st candle = Green candle
2nd candle = Doji
3rd candle = Red candle
Doji should not overlap with body & shadow of
1st and 3rd candle real body.
THANK
YOU