Table of Contents
Doji Candlestick Patterns
Doji is a very important candlestick formation and is formed when the open and close are approximately at the same price level. it depicts indecision and can often mean impending weakness in an up trend. A doji invariably occurs whenever a trend stalls, or when a reversal is imminent. the Doji represents a situation where the bulls and bears are evenly matched and there is thus indecision with regard to future trend. it is important to remember that a doji is not a trading signal, but a warning that the technical position of the market or stock may be changing.
All dojis need confirmatory candles to act as a trading signal for a fresh move. Traders would do well to look for a doji at the extreme zones of western indicators, or at significant trend lines, and use them for anticipating reversal in market psychology and therefore for taking profits. in our trading experience, while exiting on a doji formation might not protect your entire move, over the long run it is worthwhile booking profits whenever a doji occurs after a substantial move, either up and down. this is because in a majority of cases the doji leads to trend stalling and reversals, both minor and major.
Types of Doji Candlestick Pattern:
There are different types of Doji patterns, namely the Common Doji, Gravestone Doji, Dragonfly Doji and Long-Legged Doji.
1. Neutral Doji
This is the most common type of Doji candlestick pattern.
When buying and selling are almost the same, this pattern occurs.
The future direction of the trend is uncertain as indicated by this Doji pattern.
2. Long-Legged Doji
As the name suggests this is a long-legged candlestick pattern.
When the supply and demand factors are at equilibrium, then this pattern occurs. The trend’s future direction is regulated by the prior trend and Doji pattern.
3. Gravestone Doji
This pattern is found at the end of the uptrend when supply and demand factors are equal.
At the day’s low, the candlestick opens and closes. The future direction of the trend is regulated by the prior trend and Doji pattern.
4. Dragonfly Doji
This pattern appears at the end of the downtrend when the supply and demand factors are at equilibrium.
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Candlestick Chart And Patterns
Candle charts use the same open, high, low, and close data as the traditional western bar chart. with this in mind, a bar chart.
The Rectangular sections of the candle lines are called the real body. the real body represents the range between the session’s open and close. when the real body is black, it means the close of the session was lower than the open. if the real body is white it shows the close was higher than the open.
the thin lines above and below the real body are the shadows. these shadows represent the session’s price extremes. the shadow above the real body is called upper shadow and the shadow below the real body is the lower shadow. Accordingly, the peak of the upper shadow is the high of the session and the bottom of the lower shadow is the low of the session.
if a candle line has no upper shadow, it is said to have a shaven head. A candle line with no lower shadow has a shaven bottom.
Candle Terminology and market emotion
Technical Analysis is the only way to measure the emotional component of the market. we know that many times an ounce of emotion can be worth a pound of facts. how else to explain a sudden shift in the market without a change in the fundamentals?
a fascinating attribute to candle charts is that the names of the candle patterns are a colorful mechanism describing the emotional health of the market at the time these patterns are formed. After hearing the expression “dark-cloud cover,” would you think the market is in an emotionally healthy state? Of course not! As we will see later, this is a bearish pattern and the name clearly conveys the unhealthy state of the market.
there are many patterns and ideas in this Blogs (stockmarketedu.in), and the descriptive names employed by the Japanese not only make candle charting fun, but easier to remember if the patterns are bullish or bearish. for example you will learn about the “evening star” and the “morning star” . without knowing what these patterns look like or what they imply for the market, just by hearing their names, which do you think is bullish and which is bearish? the evening star (the nickname for the planet Venus), which comes out before darkness sets in, sound like the bearish signal and so it is the Moring star, then is bullish since the morning star (the planet Mercury) appears just before sunrise.
Candlestick Reversal Patterns
Technician watch for price clue alerting them to shift in market psychology and trend. Reversal patterns are these technical clues. western reversal indicators include double tops and bottoms, reversal days, head and shoulders, and island tops and bottoms. yet the term “reversal pattern” is somewhat of misnomer. hearing that term may lead you to think of an old trend ending abruptly and then reversing to a new trend. this rarely happens. trend changes usually occur slowly, in stages, as the underlying psychology shifts gears. a trend reversal signal implies that the prior trend is likely to change, but not necessarily reversing. compare a trend to a car traveling forward. the car’s red brake lights go on and the car stops. the brake light was the reversal indicator showing that the prior trend was about to end.
I have gone into detail about the subject of reversal patterns because most of the candle indicators are reversals. Now, let us turn our attention to the first group of these candle reversals indicators.
the hammer and hanging man can be recognized by three criteria:
- the real body is at the upper and of the trading range. the color of the real body is not important.
- it has a long lower shadow that should be at least twice the height of the real body.
- it should have no, or a very short, upper shadow.
There are three aspects that differentiate the hanging man from the hammer trend, extent of the move before the candle line, and confirmation. specifically:
- Trend: A hammer must come after a decline. a hanging man must come after a rally.
- Extent of the move before the candle line: A hammer is valid even if it comes after a short-term decline, but a hanging man should emerge after an extended rally, preferably at an all time high.
- confirmation: as will be addressed later, a hanging man should be confirmed, while a hammer need not be.
CANDLESTICK CHART
Candlestick chart analysis में Candle की मदद से Trading patterns को identify किया जाता है,
और इस Candlestick patterns की मदद से Technical Analyst कोई भी Trade कर सकता है,
CANDLESTICK PATTERNS क्या होता है ?
Candlestick patterns, कुछ खास बनावट वाले Single Candle और दो या दो से अधिक Candle के द्वारा बनने वाले Trading Pattern होते है,
जो Traders द्वारा बार बार Repeat की जाने वाली trading patterns के ऊपर आधारित होता है,
CANDLESTICK PATTERNS के फायदे
Candlestick patterns कि मदद से Trader किसी trade से पहले अपना एक complete Point of view बना सकता है, कब Trade लेना है,और कब नहीं लेना.मतलब हम Candlestick patterns मार्केट में एक Trading का signal देता है, और इसके अलावा Candlestick patterns कि सबसे खास बात ये होती है, कि हम इसके आधार पर अगर कोई Trade लेते है, तो Risk Management भी उसी Candle कि मदद से किया जा सकता है,आपको कहा stop loss लगाना है, ये बहुत आसानी से हर Candle patterns में साफ़ साफ समझ आ जाता है.
Type Of CANDLESTICK PATTERNS
Two Type Of Candlestick patterns
- Single candlestick pattern
- Multiple candlestick patterns
SINGLE CANDLESTICK PATTERN
- MARUBOZU
- Bullish Marubozu
- Bearish Marubozu
- Spinning Top
- Doji
- Paper Umbrella
- Shooting Star
MULTIPLE CANDLESTICK PATTERN
- ENGULFING PATTERN
- HARAMI Patterns
- BULLISH HARAMI
- BEARISH HARAMI
- PIERCING PATTERN
- DARK CLOUD COVER
- MORNING STAR
- EVENING STAR
अगर आप इन नामो को पढ़ कर कुछ सोच रहे है कि, ये ऐसा क्यों है, तो आपको बता दे कि Candlestick chart analysis एक जापानी analysis तकनीक है, और ये सभी नाम जापानी नाम है,
इसलिए, एक इंडियन होने के नाते ये सभी नाम आपके लिए कुछ अजीब से हो सकते है,लेकिन अब जो है सो है, आपको इन्ही नामो के साथ इनको याद रखना है.
Technical Analysis – Introduction
Multiple candlestick patterns
- Engulfing Patterns
- The Harami Pattern
- The Stars Patterns
- The Morning Star
- The Evening Star
Single Candlestick Patterns