HomebeginnerBook profit in daily trading using these candlestick patterns.
Book profit in daily trading using these candlestick patterns.
July 21, 2022
Book profit in daily trading using these candlestick patterns.
In the previous article we learned brief information about intra day and trading, in this we introduced technical analysis which is important in it. In this article we are going to introduce the candlestick patterns used in technical analysis. This is the beginning of success in trading. So it is important to start well. The graph on the trading chart has many types of price and candlestick patterns to display the movement of the market. It has many different patterns like line, mountain, bar. In this, the trader is trading according to which pattern they feel comfortable. But this depends on their strategy.
Most traders in the world use candlestick patterns. Because this pattern is very easy to understand and at the same time the knowledge in trading and stock market is conveyed to people by using candlestick pattern in the market. Everywhere in share market classes, books, social media, as well as those who are experts in this. All these new investors and traders knowledge is provided by these candlestick patterns. You have to use these patterns to know the stock market from start to finish. We have seen in the previous article that there are two types of candlestick, green(Bullish) candlestick and red(Bearish) candlestick. Actions and movements are taken according to the candlestick price in the market chart.
If you understand what this article is today, you can use it to make money from actual trading. You can apply this information in trading and earn money daily. You will not find information about this in any class or expert traders will not tell you this information. We only think that you can reduce your loss in trading and increase your profit, you can make maximum money by using this information. For this we are providing you complete information about share market free off cost. You may know these candlesticks, but you don’t have the knowledge of how they are used and how they work, so we are going to give the knowledge step-by-step and in a simple way from this article.
While looking at the candlestick patterns, first we have learned the information about the candlestick in the previous article. In this we want to know the following candlestick patterns. patterns we have single, double, triple and more than three patterns available. article we are going to learn a few hundred patterns because you will not understand all the patterns at once. so we have to do this study gradually. First we are going to learn about single candlestick patterns. In this we are going to learn how to identify market movement using single candlestick patterns.
1) Hammer / Hanging Man
This is our first candlestick pattern. In this pattern, the body of the candle is less and its lower width is 3x or 4x larger than the body.
In this, when this pattern is low i.e. the market is down and bearish when it is formed then it is called Hammer.
If the hammer chart is formed above, it means that it is in any color i.e. in bullish candlestick or bearish candlestick then there is a possibility of market reversal and market position changes and it goes into up trend.
If you see this pattern in a down trend in the chart, then if there is a bullish candlestick, you should take an entry at that point and place a stop loss by leaving 1 or 2 points below the lower width of the previous hammer candlestick.
Setting stop loss and target is very important in trading. If you do not know these things, then in the next few articles we will learn about them. If you do not use these things in trading, you are likely to loss.
When you enter the market as per this pattern, you should hold the stock till the movement of the market is in the up trend and sell the stock when a different pattern occurs in the market or a red candlestick appears. In this way you can book a good profit from it every day.
If this pattern is formed when the market is bullish, at that time the market may reverse and the movement of the market may become bearish, it is called hanging man candlestick pattern.
A market reversal is likely if a hanging man pattern is formed. When the market is going in a down trend, when a red candlestick appears after the Hanging man pattern, entry should be taken in the market and a stop loss should be placed at the end of the higher width of the Hanging man candlestick.
2) Inverted hammer/ shooting stare.
This is our second candlestick pattern. It looks like an inverted hammer. In this pattern, its higher width is 3x or 4x larger than the body of the candlestick.
This pattern is when the market is in a down trend. At time, if this pattern or trend is find and the market reverses and the market changes into an upward trend, it is call an inverted hammer pattern.
If this pattern is find, leave a couple of hundred points of its body and put a stop loss and if the next candlestick is bullish, enter at that time.
This pattern is observe when the price of the market is increasing. When the market is bullish and this pattern is found there, the market reverses and if the trend of the market changes and it go down, then this pattern is call shooting stare.
If this pattern occurs when the market is bullish, stop loss should be place at the end of the higher width at that time, and if a bearish candle occurs, entry in the market should be take at that point. You can see how this pattern works in the chart.
3) Doji candlestick pattern.
While in the market buyers are trying to bring the market up trend by putting their efforts and at the same time sellers are trying to bring the market down trend by putting their efforts. pattern is form when the price movement of sellers and buyers comes in equal position.
This pattern is find in plus shape, and its color is find in black. pattern is calle doji pattern in the market. There are two types of this. First Dragonfly doji and second Gravestone doji.
Byers are always strong in this pattern. In this, when the price opens at 100/- and the price down sellers take it up to 70, but then the price byser brings it up and closes at 105/-, at that time its body appears to be the lowest and its lower width is 6x or 7x larger than the body. At that time it is calle Dragonfly doji.
In this, its body color may be black, when this pattern starts when the market is in a down trend and then a green candle starts again, then there is a possibility that the market will reverse and go into an up trend.
In this, the stope loss should be place at the place where the lower width end of this candle is and if a bullish candle appears again, an entry should be take at the close price of that candle.
candlestick, the higher width of the candle is 6x or 7x larger than its body.
When the trend of the market is in an up trend, if this pattern occurs, the market trend can change by becoming market rivers and the market can go into a down trend.
In this pattern, if the market starts to go in a down trend, stop loss should be place at the end of its higher width and entry should be take in the market when the second candle starts.
4) Spinning Top.
When the higher and lower width of the candlestick can be more than 2x and sometimes equal, this pattern is calle spinning top.
Spinning top has two types. First bullish spinning top and second bearish spinning top.
Marubozu candlestick is a storange seller or byer candlestick. It does not have the width of this candlestick. Even if it is small and either higher or lower.
It consists of two types of candlestick, bullish Marubozu(green) and bearish Marubozu(red).
In this article we have learned candlestick pattern. In this we have seen its types, these are of three types. We have seen only the first type of single candlestick pattern in this article. We are going to know the following types in the next few articles. Candlestick patterns only work to reverse the trend of the market. This changes the trend of the market. These are the patterns you have seen today. It is necessary to practice and study it in live market. You can benefit from this. do paper treading while practicing this. You can also know whether you are losing or profiting from this. If you are losing, then if you study why it happens, you can become an expert trader yourself.