Single candlestick Pattern

The Marubozu

Bullish: It does notmatter what the prior trend has been, the action on the marubuzo day
suggests that the sentiment has changed and the stock in now bullis
buy price :closing price of the marubuzo.
stoploss: low of the stock

The Spinning Top: The candles have a small real body ,The upper and lower shadow are
almost equal

It just conveys indecision as both bulls and bears were not able to influence the markets

Spinning tops in a downtrend

Spinning tops in an uptrend

The Dojis : it does not have a real body at all . Doji also convey indecision in the market
Paper Umbrella : the length of the lower shadow should be at least twice the length of the
real body. This is called the ‘shadow to real body ratio’.

If the paper umbrella appears at the bottom end of a downward rally, it is called the ‘Hammer :
This action by the bulls has the potential to change the sentiment in the stock, hence one should
look at buying opportunities

If the paper umbrella appears at the top end of an uptrend rally, it is called
the ‘Hanging man’.

The shooting star : looks just like an inverted paper umbrella.

The shooting star is a bearish pattern; hence the prior trend should be bullish
Stoploss : The high of the shooting star

Multiple candlestick patterns

trader needs 2 or sometimes 3 candlesticks to identify a trading opportunity

Engulfing Pattern
a small candle on day 1 and a relatively long candle on day 2which appears as if it engulfs the
candle on day 1. If the engulfing pattern appears at the bottom of the trend, it is called the
“Bullish Engulfing” pattern. If the engulfing pattern appears at the top end of the trend, it is
called the “Bearish Engulfing” pattern.
Fig: Bullish Engulfing

buy price: close price of blue candle

stop : the lowest low between P1, and P2

whenever a doji follows a recognizable candlestick pattern, the opportunity created is bigger

High Volume = Today’s volume > last 10 days average volume

Low Volume = Today’s volume < last 10 days average volume