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This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.
One of the biggest assumption in technical analysis is that "history tends to repeat itself".
So, if a certain sequence of things happends in regard to price and volume in the past, it is likely that the same thing will repeat again.
Using the patterns, we can try to predict an entry price, a possible exit price and a stop loss.
Candlesticks are technical analysis tools that help us to identify trading patterns.
So, a technical analyst will have to use candlesticks to identify patterns and use them to predict certain outcomes.
There are two types of candlesticks patters
- Single Candlestick Patterns
- Multiple Candlestick Patterns
Single Candlestick Patterns
In this type of patterns, a single candlestick can be used to identify a pattern:
1.Marubozu a. Bullish Marubozu b. Bearish Marubozu
4.Paper umbrella a. Hammer b. Hanging man
Multiple Candlestick Patterns
In this type of patterns, multiple candlesticks can be used to identify a pattern:
1.Engulfing pattern a. Bullish Engulfing b. Bearish Engulfing
2.Harami a. Bullish Harami b. Bearish Harami
4.Dark cloud cover
- Using SuperTrend and Parabolic SAR for trading and investing
- Using Williams %R to determine oversold or overbought situation
- Using Commodity Channel Index to determine strong or weak price action
- Using Average Directional Index to determine trend strength or weakness
- Cup and Handle Chart Formation