Points to remember from 11th June session

If we are good in supply, demand and support, resistance we can become masters.

Support can become Resistance and Resistance can become Support.

Resistance- Roof
Support- Floor

Buy at Support
Sell at Resistance

*Rest all points discussed on 11th June were a revision and recall of 10th June’s session.

Points to remember from 12th June session

Candlestick- fight between Buyer and Seller (Bull & Bear).

Candlestick comprises of 3 parts –

- Upper shadow line / wick
- Body
- Lower shadow line / wick

Those who win the fight among buyer and seller forms the body of candlestick.

Candlestick
Used for prediction
Combination of line and bar chart
Each bar has O(Open), H(High), L(Low), C(Close)
Bullish candle
Opens below
Closes up

Bearish candle
Opens up
Closes below

Low, High are same in both

Uses of candlestick patterns -

- Describes financial price movement
- Charts to understand technical analysis

Market trends can be of 3 types- bullish, bearish, sideways.

History of Candlestick pattern

- It was developed in the 18th century by Munehisa Homma, a Japanese rice trader
- Steve Nison published the candlestick pattern and made it famous.
- Reason for popularity- Simplicity & Effectiveness.

Simple Candlestick Patterns

1. Big Black Candle

 It is also known as Big Red Candle

 Wide range between high and low
 Prices open near high and closes near low
 It is considered to be a bearish pattern
 It’s a reversal pattern
 2. Big White Candle

 Range between high and low

 Prices open near low and closes near high
 It is considered to be a bullish pattern
 It’s a reversal pattern

3. Black Body

 It is also called as Red Candle

 Open = High
 Close = Low
 Bearish Signal
 Chances of change in trend

4. Doji

 Don’t trade here, wait for some time

 This denotes opening and closing price are same
 Anything between 3-5 cents is good
 Beyond 5 cents, there is no Doji
 5. Dragonfly Doji

 It is formed when opening and closing prices are at the highest point of the day
 It has a longer lower shadow
 The trend in bullish
 If it appears at the market bottom, then, it is considered to be a reversal signal
 It denotes Bullish Reversal Pattern

6. Gravestone Doji

 It is formed when opening and closing prices are at the lowest point of the day
 If it appears at the market top, then, it is considered to be a reversal signal
 If it is having a longer upper shadow, then it is a worrisome signal
 It is a signal of bearish trend