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DARK CLOUD COVER CANDLESTICK PATTERN

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Dark Cloud Cover Candlestick www.FurtherGrow.in The Dark-cloud Cover pattern is a bearish trend reversal or top reversal pattern that appears in an uptrend and signals a potential weakness in the uptrend. It is a two-candlestick pattern and is the antithesis of the piercing pattern . As it is a bearish trend reversal pattern, the dark-cloud cover pattern is only valid if it appears in an uptrend. The first candlestick in this pattern must be a light candlestick with a large real body.  The following candlestick should be a dark candlestick that opens above the high of the first candlestick but closes well into the real body of the first candlestick, signaling a change in sentiment. The pattern is more reliable if the second candlestick closes below the middle of the first candlestick, with the deeper the penetration of the second candlestick the more significant it becomes. It also becomes more significant if the two candlesticks that form the pattern a

THREE BLACK CROWS CANDLESTICK PATTERN

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Three Black crows(RED)Candle  www.FurtherGrow.in Three black crows is a term used by stock market analyists to describe a market downturn. It appears on a candlestick chart in the financial markets. It unfolds across three trading sessions, and consists of three long candlesticks that trend downward like a staircase. Each candle should open below the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively downward to establish a new near-term low. The pattern indicates a strong price reversal from a bull market to a bear market.  [1] The three black crows help to confirm that a bull market has ended and market sentiment has turned negative. In Japanese Candlestick Charting Techniques, technical analyst Steve Nison says "The three black crows would likely be useful for longer-term traders.  [2] This candlestick pattern has a counterpart known as the Three white soldiers, whose attributes help

THREE WHITE SOLDIERS CANDLESTICK PATTERN

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  Three White (Green) Soldiers www.FurtherGrow.in Three White (Green) Soldiers Three white soldiers is a candlestick chart pattern in the financial markets. It unfolds across three trading sessions and suggests a strong price reversal from a bear market to a bull market. The pattern consists of three long candlesticks that trend upward like a staircase; each should open above the previous day's open, ideally in the middle price range of that previous day.                                                            Each candlestick should also close progressively upward to establish a new near-term high. [1] The three white soldiers help to confirm that a bear market has ended and market sentiment has turned positive. In Candlestick Charting Explained, technical analyst Gregory L. Morris says "This type of price action is very bullish and should never be ignored." [2] This candlestick pattern has an opposite known as the Three Black Crows, which shares th

BEARISH HARAMI CANDLESTICK PATTERN

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  BEARISH HARAMI CANDLESTICK PATTERN www.FurtherGrow.in In up trends, the harami consists of a large green candle followed by a small green or red candle (usually red) that is within the previous session’s large real body. Description                Bearish Harami is a two candlestick pattern composed of small red real body contained within a prior relatively long green real body. The body of the first candle is the same color as that of the current trend. The open and the close occur inside the open and the close of the previous day. Its presence indicates that the trend is over. Criteria 1. The first candle is green in color; the body of the second candle is red. 2. The second day opens lower than the close of the previous day and closes higher than the open of the prior day. 3. For a reversal signal, confirmation is needed. The next day should show weakness. 4. The uptrend has been apparent. A long green candle occurs at the end o

BULLISH HARAMI CANDLESTICK PATTERN

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BULLISH  HARAMI CANDLESTICK PATTERN   www.FurtherGrow.in A candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In downtrends, the harami consists of a large red candle followed by a small green or red candle (usually green) that is within the previous session’s large real body. This pattern signifies that the immediately preceding trend may be concluding, and that the bulls and bears have called a truce. Description The Harami is a commonly observed phenomenon. The pattern is composed of a two candle formation in a down-trending market. The color first candle is the same as that of current trend. The first body in the pattern is longer than the second one. The open and the close occur inside the open and the close of the previous day. Its presence indicates that the trend is over. The Harami (meaning “pregnant” in Japanese) Candlestick Pattern is a reversal pat

PIERCING CANDLESTICK PATTERN

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PIERCING CANDLESTICK PATTERN   www.FurtherGrow.in The bullish counterpart to the dark cloud cover is the “piercing pattern.” The first thing to look for is to spot the piercing pattern in an existing downtrend, which consists of a long red candlestick followed by a gap lower open during the next session, but which closes at least halfway into the prior black candlestick’s real body.                                   The Piercing Pattern is composed of a two-candle formation in a down trending market. With daily candles, the piercing pattern will often end a minor downtrend (a downtrend that lasts between six and fifteen trading days). The day before the piercing candle appears, the daily candle should have a fairly large dark real body, signifying a strong down day. Criteria 1. The downtrend has been evident for a good period. 2. The body of the first candle is red; the body of the second candle is green. 3. A long red candle occurs at the end of the t

BULLISH ENGULFING AND BEARISH ENGULFING

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BULLISH ENGULFING AND BEARISH ENGULFING   1.BULLISH ENGULFING www.FurtherGrow.in A “bullish engulfing pattern” consists of a large green real body that engulfs a small red real body during a downtrend. It signifies that the buyers are overwhelming the sellers.                       The Engulfing pattern is a major reversal pattern comprised of two opposite colored bodies.This Bullish Pattern is formed after a downtrend. It is formed when a small red candlestick is followed by a large green candlestick that completely eclipses the previous day candlestick. It opens lower that the previous day’s close and closes higher than the previous day’s open. Criteria 1.The candlestick body of the previous day is completely overshadowed by the next day’s candlestick. 2. Prices have been declining definitely, even if it has been in short term. 3. The color of the first candle is similar to that of the previous one and the body of the second candle is opposite in c

STARS CANDLESTICK PATTERNS

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STARS CANDLESTICK PATTERNS     Types Of Stars Candlesticks   1.MORNING STAR www.FurtherGrow.in                                                        The morning star  is a bottom reversal pattern. Its name is derived because, like the morning star (the planet Mercury) that foretells the sunrise, it presages higher prices. It is comprised of a tall, red real body followed by a small green body which gaps lower (these two lines comprise a basic star pattern). The third day is a green real body  that moves well within the first period's black real body.                                                                                                          This pattern is a signal that the bulls have seized control. I will break down this three candlestick pattern into its components in order to understand the rationale behind this last statement. The market is in a downtrend when we see a red real body. At this time the bears are in command. Then a smal

SPINNING TOP AND HIGH WAVE

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SPINNING TOP AND HIGH WAVE   furthergrow.in A red or a green candlestick is formed with a small body. The size of shadows can vary. It is interpreted as a neutral pattern but gains more importance when it is part of other formations. when it comes in the bull market rally spinning top indicates the bulls are neutral bears take place of bulls and indicates the bears try to back in the market.the colour does not matter but red spinning top singal more bearish and green spinning top indicates more bullish. See Example In Chart furthergrow.in What is the difference between the spinning top and the high wave? In the spinning top, the shadows are relatively small and the candle has a very small range. When combined with low volume, traders may be expressing disinterest. colour does not matter www.FurtherGrow.in See Example In a Chart furthergrow.in Thanks...

MARUBOZU CANDLESTICK

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MARUBOZU CANDLESTICK   www.FurtherGrow.in In Japanese, the term marubozu means "close-cropped." Other common names for the marubozu include "shaven head" or "shaven bottom." Typically, the marubozu is a long candle that implies the day's trading range has been large. A marubozu candle lacks either an upper or lower shadow. On rare occasions it can lack both an upper or lower shadow. I am going to add a new term to candlestick terminology and call a long candle without either an upper or lower shadow a "full" marubozu.                                                                           If you spend a lot of time at the trading screen, then you probably realize that a full marubozu is a very unlikely occurrence. Even after a strong up gap, most stocks experience a minor reversal, which leaves a small lower shadow. The same is true for the down gap. In addition, if a stock has moved sharply higher during the day,

TYPES OF DOJI

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TYPES OF DOJI   There Are Four Types Of Doji        1.THE DOJI www.FurtherGrow.in If you were to learn only one candle by name, this would have to be the one. A "common" doji, as I call it, is shaped like a cross. A doji has no real body. What it says is that there is a stalemate between supply and demand. It is a time when the optimist and pessimist, amateur and professional are all in agreement. This market equilibrium argues against a strong uptrend or downtrend continuing, so a doji often marks a reversal day. A doji in an overbought or oversold market is therefore often very significant. The opening of the next day should be watched carefully to see if the market carries through on the reversal. Note, a candle with a very small real body often can be interpreted as a doji.  Let's See Doji In a Chart www.FurtherGrow.in 2.LONG LEGGED DOJI www.FurtherGrow.in A "long-legged" doji is a far more dramatic candle. It says

HAMMER CANDLESTICKS PATTERN

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HAMMER CANDLESTICKS PATTERN    ONE CANDLESTICK PATTERN In the terminology of Japanese candlesticks, one candle patterns are known as “Umbrella lines”. There are two types of umbrella lines - the hanging man and the hammer. They have long lower shadows and small real bodies that are at top of the trading range for the session. They are the simplest lines because they do not necessarily have to be spotted in combination with other candles to have some validity. 1.Hammer Hammer is a one candle pattern that occurs in a downtrend when bulls make a start to step into the rally. It is so named because it hammers out the bottom. The lower shadow of hammer is minimum of twice the length of body. Although, the color of the body is not of much significance but a white candle shows slightly more bullish implications than the black body. A positive day i.e. a white candle is required the next day to confirm this signal. Formation WWW.FurtherGrow.in 1. The lowe