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Candlestick & Chart Pattern Explanation

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A hammer candlestick is a specific candlestick pattern that indicates a potential

trend reversal. Since it forms with a downtrend, traders associate the hammer
with the return of a bullish trend in the market. It is a small green candle with
a long lower shadow, which symbolizes the rejection of the lower price by the
market.
The inverted hammer is a short green candle. This implies that the price
increased during the day, but eventually closed just above the opening,
forming a short. - When this is formed, traders look for confirmation, with the
formation of the Hammer followed by the formation of a candlestick.
It is considered bearish and appears during an uptrend. A gravestone doji is
formed when the open, low, and close are the same. Often, the candlestick has
no real body and a long upper shadow, giving it the appearance of an inverted
The pattern of dragonflies is like a candle with no real structure, it is a
reflection of a long downward trend, a long bar emerging
during a dragonfly uptrend, portends to investors that the bearish trend may
also gain strength and The uptrend may reverse. Investors always wait for the
next candle after the doji to बनने confirm the trend
Its unique presence has led to market pressure from both buyers and sellers. it
occurs. Buyers try to raise the price while sellers try to lower it. They try, but
both fail to keep the change. result both There is a small body candlestick with
a long shadow on the side.
The morning star Bullish 3 Multiple Candlestick
Pattern, which consists of three consecutive candles on a chart, as well as
the morning star, is also known as a Downtrend Reversal Pattern, and
hence further trading in the stock after The morning star
Candlestick Pattern appears. Bullish pattern can be seen,
The Evening star is Bearish 3 Multiple
Candlestick Pattern, which consists of three consecutive candles in a chart, also
known as Evening Star, UP TREND Reversal Pattern, it means that after the
appearance of The
Evening star Candlestick Pattern Further BEARISH pattern can be seen in the
stock.
The shooting star is a BEARISH single candlestick pattern, and the SHOOTING
STAR body pattern is the exact opposite of the paper umbrella candle ie
hammer and hanging man, and that is why it is called "INVERTED PAPER
UMBRELLA". The shooting star candle is formed when a STOCK UP Be in
TREND, and one day i.e. on 'the day of becoming a shooting star, the STOCK
goes above its OPEN PRICE and makes another HIGH PRICE, which is in the
BULLISH TREND of the stock.
COLOR OF CANDLE IS NOT MUCH IMPORTANT, BUT THE PREVIOUS TREND OF
THE STOCK
IS IMPORTANT WHICH SHOULD BE UP
TREND. Now it will be BEARISH,
Bullish Engulfing Pattern is a 2 candlestick which is formed in the ongoing
downward trend as soon as the Engulfing candle is formed, after that the
market T is occupied by the bulls, which means that the market is bullish, in
this situation buying has to be done.
The BEARISH ENGULFING candlestick pattern is a bearish pattern. This means
that now the time of boom in the stock is over and recession may start, that
means now there is a high possibility of the stock price falling. This pattern is
made up of two candlesticks like the "Pattern Bullish Elfing Pattern". The first
candle is a small bullish candle, it can also be called a small bullish candle. It is
of green colour. The second candle is the long bearish candle, it is red in colour.
This is called a bearish candle.
The tweezer bottom is a bullish pattern. This pattern is formed when sellers
are pushing the price down even after a prolonged downtrend in the stock
market/stock but sellers are not able to keep the price down at the end of the
session. This means that now the time of recession is over and is about to
begin.
The Tweezer Top Candlestick Pattern is a double candlestick pattern. Whose
first candle is a bullish i.e. green in color and the second bearish i.e. red in
color. It always forms a 'top' on the chart after a long uptrend. The first candle
of this pattern can be long bullish, small bullish or any single bullish candle.
The second candle after this can also be long bearish, small bearish or any
single bearish candle.
An inside bar chart pattern engulfs a larger candle, some call it the mother bar.
This is a pattern that forms after a large market move and represents a period
of consolidation, with the next candle being BULLISH.
An inside bar chart pattern engulfs a larger candle, some call it the mother bar.
This is a pattern that forms after a big move in the market and represents a
period of consolidation, followed by a BEARISH candle.
The first candle is a big candle, and the second candle is a much smaller candle
than the first candle, and the color of both the candles is different,
HARAMI PATTERN is formed in both TREND i.e. UP
TREND and DOWN TREND,
If HARAMI PATTERN is formed in DOWNTREND in chart then TREND
REVERSAL means there is a possibility of a BULLISH TREND ahead
The first candle is a big candle, and the second candle is much smaller than the
first candle, and the color of both the candles is different, HARAMI PATTERN is
formed in both TREND i.e. UP TREND and DOWN TREND, and if If there is an
UP TREND in the HARAMI PATTERN chart, then the TREND REVERSAL means
that there will be a BERARISH TREND ahead. that there is a possibility
Three White Soldiers is a 3-candle cluster pattern that signals an increase in
price. They often appear in a downtrend and warn of a possible reversal of an
uptrend. This pattern indicates a bearish to bullish trend reversal signal.
The three black is the inverse of the three white soldiers that appear at the
end of an uptrend. So, when we say the opposite, the Three Black Crows
pattern indicates a bearish trend in the market. It is a group of three log body
candlesticks with consecutive falling closing prices.
Dark cloud cover is a bearish reversal candlestick pattern that forms at the end
of an uptrend.
It is made of two candlesticks. The first candlestick is the bullish
candlestick and the second one is the
bearish candlestick. Traders find this pattern important as it signals the
reversal of an uptrend into a downtrend.
On this candlestick, there is a small part called the at "nose". The nose is
smaller than other parts. A pin bar is seen with its tail pointing down and
towards the body. Means falling but one side tries to pull
it back
Piercing pattern is a candlestick pattern that forms near support levels And this
gives us an indication of a possible bullish reversal.
The only difference between the dark cloud cover and the piercing pattern is
that the dark
Cloud cover signals bearish reversal while piercing pattern
signals a bullish reversal
It is found towards the end of a downtrend and is similar to dark cloud cover.
The piercing pattern is made up of two candlesticks, the first being a bearish
and the
second being a bullish candlestick.
This pattern is characterized by a sharp reversal in price over a period of two
candlesticks. is characteristic of.
Traders use the kicker pattern to determine
Which group of market participants is in control of that direction.
This pattern is characterized by a sharp reversal in price over
a period of
two candlesticks. Traders use the kicker pattern to determine which group of
market participants is in control of the direction.
A key feature of this technical indicator is that its strength is determined by the
size of the engulfing candlestick, which is the second. The larger the second
candlestick the more significant it is outside the three patterns. The smaller
the deceleration pressure increases, the weaker its signal becomes.
A key feature of this technical indicator is that its strength is determined by the
size of the engulfing candlestick, which is the second of the three. The larger
the second candlestick the more important it is outside the three patterns. The
smaller the deceleration pressure increases, the weaker its signal becomes.
The Three Inside Up and Down candles are both types of reversal patterns. The
Three Inside Up Down pattern requires different candles to form a certain
sequence to demonstrate that the current trend no longer has its previous
momentum and is probably headed in a new direction. Starting to move
forward. Specifically, the Three Inside Up candlestick pattern is made up of a
large down candle, a second small up candle that is inside the previous candle,
and finally a third up candle.
The Three Inside Up/Down pattern requires different candles to form a certain
sequence to demonstrate that the current trend no longer has its previous
momentum and is probably starting to
move in a new direction.
MARUBOZU FINDS OUT THE TREND OF THE MARKET VERY ACCURATELY Can
go, whether the market will go up or down, we just need to know the right way
Must be able to identify Marubuzo candles.
When a marubozu candle is formed on the chart, then there is no shadow of
the candle. This is a long candle. If there is a bearish train agoing on in the
chart and a bearish marubozu candle is formed in it, then there is a possibility
of further bearishness from here.
The double top chart pattern is a strong bearish reversal pattern. This signals
the end of a long rally. As the name suggests, a double top chart has two highs
and a low in between. The double top pattern is confirmed once the price
breaks below the support level after the second top.
The double bottom pattern is a type of candlestick pattern characterized by a
W-shaped price chart. However, it can also be found in bar charts and line
charts. A double bottom is created when a
security's price falls and rises twice, respectively. There are two 'bottoms' of
the uptrend pattern.
Triple top chart is formed after a long rally and for triple top chart it is
necessary that the previous trend should be an up trend. Friends, when top1 is
formed then it must be the highest high of the previous up trend. When top1
is formed, after that price reversal takes place and the price comes down.
The triple bottom chart pattern is a reliable pattern but it is not advised to
chart without additional confirmation signals. Traders should look at indicators
such as the Relative Strength Index and enter trades if the stock has an
oversold
This pattern is a continuation pattern in which a triangle-like formation
appears.
When the price of a stock goes from bottom to top and then comes
down and each such fall is less than its previous fall,
Pennant Pattern indicates that the price of this stock is increasing
gradually and further this increase is considerable. Can pick up speed.
The bullish flag chart pattern occurs during an uptrend, and signals* that there
may be a continuation uptrend. On the other hand, i a bearish flag chart
pattern forms during a downtrend. This is a signi of continuation of the up
trend.
The bullish flag chart pattern occurs during an uptrend, And there is indication
that there could be a continuation uptrend.
A bearish flag chart pattern forms during a downtrend. This signifies the
continuation of the bearish trend.
A climb above the resistance line (plus some divergence is possible) at which
the asset has been repeatedly sold is finally considered a buy signal.
The price of the rectangle pattern is characterized by support and resistance
levels representing two parallel trendlines, holding a certain set of price
fluctuations, and connecting the most recent lows respectively.
The Rising Wedge chart is a bearish chart. It
means when this
chart is formed after that the time of boom in the market or stock is over and
the recession is going
to start.
The falling wedge chart pattern appears like a falling wedge on the chart, it is a
Bullish reversal chart pattern formed during a downtrend. This means that the
downtrend currently going on in the market has come to an end. Now the
Uptrend is going to start from here.
The Head and Shoulders chart pattern is primarily a price reversal pattern. This
helps traders identify an upcoming trend reversal in a market. The reversal
essentially predicts or signals a bearish trend, indicating that an uptrend has
come to an end. It consists of three peaks, with the outer two peaks being
close in height.
This pattern is completely opposite to the Head
& Shoulders pattern, it is formed in the opposite direction. On
the other hand, the Inverted Head and
Shoulders pattern indicates that the price of a stock is about to rise.
In an uptrend it is more likely and expected that a Symmetrical triangle chart
pattern breaks above resistance and Uptrend can be continued ·
It is formed when prices make frequent highs and lows. It is also very difficult
to predict which direction the final breakout will take in the Broadening
Triangle pattern.
The ascending triangle pattern means that the wider the pattern, the higher
the risk and reward. For narrow patterns, the stop loss becomes smaller; The
profit target is still based on the most important part of the pattern.
Descending triangle pattern can also be called descending triangle pattern in
Hindi which is formed in times of recession. This pattern consists of a series of
consecutive new lows followed by new highs, forming a clear dot diagonal line.
In this series, a horizontal line connects the bottoms of these highs.
The cup and handle pattern is a bullish continuation pattern that signals a
security's price consolidation successful by a breakout, followed by a dividend
price move. While the breakout is represented by the handle.
The pattern first shows a falling pattern which then reverses
to the upside. The bottom point of the circular bottom pattern represents the
lowest point that was formed as a result of the reaction. This minimum point is
always at the same time.
A diamond chart pattern refers to a trend reversal in which the stock market
forms a pattern that resembles a diamond and indicates an upcoming reversal.
Diamond patterns are advanced chart patterns used to detect reversals in
finance. Reversal Strategy is one of the most profitable trading strategies. They
usually occur after longer trend phases.

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