Candlestick
A candlestick is a type of price chart that is used in technical analysis which displays the high, low, open, and closing prices of a security/stock/Index for a specific period. The specific period can vary from 1 min to 12 months. Candlestick helps in determining psychology from buyers and seller’s perspective.
Candlestick Patterns
A candlestick pattern is a movement in prices presented graphically on candlestick chart that can predict a particular market movement. A candlestick pattern can be made up of only one candlestick, two candlesticks or more than two candlesticks. There are some candlestick patterns that are stronger and appear more than other candlestick patterns.
So, today we’ll talk about those candlestick patterns which are more profitable than others. We’ll start from one candlestick pattern i.e.
Doji
A doji candlestick pattern forms when a candlestick open and close are virtually equal. In Japanese, “doji” means blunder or mistake, referring to the rarity of having the open and close price be exactly the same. Psychologically “doji” depicts that there is confusion between buyers and sellers in which direction market should proceed.
Let’s say market is trending bullish and suddenly you spot “doji” then it’s an alert that market can reverse from here. But that is not true always there are some rules how we can confirm market is reversed after doji is spotted.
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In the above picture you can see 3 types of doji. But we cannot conclude anything form these doji. Still there is confusion who is strong buyers or sellers?
Doji is a strong candlestick pattern to trade if spotted at right moment i.e. at support or resistance, in a trending market either bullish or bearish for trend reversal. That’s it for this section we’ll talk about more candlestick patterns in upcoming blogs. Do let me know your thoughts about on this section. If you have any question ask in comment sections. I’ll be happy to answer them. See you soon……
Click below video to watch in much more details
