Affiliated to

University of Mumbai

Revised Syllabus for

Programme:
B.Com
(Financial Markets)
Semester VI
Under Choice Based Credit System
Academic Year 2021-2022

PROJECT / INTERNSHIP ON
(Impact of candlestick patterns on Bank nifty Index.)

1
 PROJECT REPORT

ON

[IMPACT OF CANDLESTICK PATTERNS ON BANKNIFTY INDEX]

SUBMITTED BY

TYBCom (Financial Markets)

(SEMESTER VI)

UNDER THE GUIDANCE OF

(Surhud Marathe)

ACADEMIC YEAR

2022 - 2023

2
 DECLARATION

I, Vinay Anil Nanani the student of T.Y.BCom Financial Market Semester VI

(2022 - 2023) hereby declare that I have completed the Project on Impact of
candlestick patterns on Bank nifty Index.
I also declare that this report which is the partial fulfilment of the requirement for
the degree of T.Y.BCom Financial Markets of KES SHROFF COLLEGE OF
ARTS AND COMMERCE, is the result of my own efforts with the help of
experts.

3
 CERTIFICATE

This is to certify that Mr. Vinay Anil Nanani

of Third Year B.Com Investment Management Semester VI (2022 -
2023) has successfully completed the Project / Internship on Impact of
candlestick patterns on Bank nifty Index. as per the guidelines of KES’
Shroff College of Arts and Commerce, Kandivali(W), Mumbai-400067.

Head of Department Guide

Dr. Vaibhav R. Ashar (Surhud Marathe)

Principal

Dr L Bhushan

4
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this internship.
I take this opportunity to thank the KES SHROFF COLLEGE OF ARTS AND
COMMERCE (AUTONOMOUS) for giving me chance to present this report.
I am thankful to KES SHROFF COLLEGE OF ARTS AND COMMERCE
(AUTONOMOUS) and <Name of a person, if any> for providing me
opportunity to work on the project/internship with their company and gaining
work experience.
I would like to thank my Principal, Dr. Lily Bhushan for providing the support
required for the internship.
I take this opportunity to thank our Guide (Surhud Marathe), for her moral
support and guidance.
Lastly, I would like to thank each and every person who directly or indirectly
helped me specially my parents and peers who supported me throughout my
project.

5
 LIBRARY ATTENDANCE CERTIFICATE

This is to certify that Mr. Vinay Anil Nnani of third year B.Com Financial
Markets having Roll No. 43, division A has successfully completed his /her
minimum hours of attendance in the library to complete the 100 marks
project on topic titled Impact of candlestick patterns on Bank nifty Index

Sign Sign Sign

Librarian Project Guide Head of Department

6
 INDEX

SR.NO CHAPTER PAGE NO

1 INTRODUCTION 8-37

2 RESEARCH 38-39
METHODOLOGY

3 REVIEW OF 40-42
LITERATURE

4 DATA ANALYSIS, 43-58

INTERPRETATION &
PRESENTATION

5 CONCLUSION 59

6 BIBILOGRAPHY 60

7
 Impact of candlestick patterns on Bank nifty Index.

Chapter No. 1: Introduction

Introduction to Candlestick Patterns

Candlestick charts are technical tools used by traders to analyse price movement in the market. Candlesticks
resemble the bar chart but are significantly different from traditional open-high, low-close bars. It’s compact
and combines multiple data from different time frames in a single candlestick bar.

Candlestick chart patterns originated in Japan. It is during the 18thcentury, Japanese rice merchants started
using colour coded candles to predict rice price movement in the market. During 90s, Steve Nison
introduced candlestick patterns to the western world and used them for technical trading. Traders worldwide
now recognise several different candlestick formations to predict market movement.

Candlestick formations are as unique as their names like Bullish or Bearish Harami, Dark Cloud Cover,
Three Black Crows, Three White Soldiers, and more. Based on the patterns and where they form in a
trendline, these formations are indicative of trend reversal, market indecision, and more, and used for
deciding long and short-term trading strategies.

Key Pointers

 Candlestick patterns are time tested trading tools used for many centuries to predict price movement
in the market accurately

 Modern traders recognise many candlestick patterns to gauge market movement

 To base trading strategy on candlestick pattern, it must concur with other trading charts

 Patterns like Doji indicate both market indecision and trend change, and hence, traders must confirm
the change before basing trading strategy

How To Read Candlestick Charts

Candlestick charts differ significantly from typical day trading charts. Then why do traders use them?
Traders prefer using candlestick formations because they offer a valuable visual perception of price. It’s
essential to understand the critical components of a candle to interpret trading signals.

A candlestick chart comprises individual candles. These candles are a visual representation of price
movement that allows traders to pinpoint where the price opened or closed for a period, along with the

8
highest and lowest price points of the day. Unique candle formations can throw significant light on market
momentum and predict a change in trend.

Now to interpret a candlestick chart, it is essential to know the different components of a candle. At the
beginning of the article, we mentioned that candles are colour coded for better understanding. So, a bullish
candle is usually green or white, and a bearish candle is either red or black.

A candle contains a rectangle body, denoting open and close price of the day, and wicks or shadows,
depicting the highest and the lowest prices during the trading period. A candle offers the following critical
information to traders.

 You can see visually where the stocks opened and closed and compare it with previous data points

 The colour of the candle helps to identify the direction the market is moving

 The wicks show the extremes in prices for a specific trading period. It allows traders to keep an eye
on market momentum

 The highest and the lowest points of the candle constitute the range. The highest and the lowest
points of the wicks are respectively the resistance and support levels

Candle patterns enjoy two significant advantages over bar trading charts. Firstly, bar charts aren’t visual, and
secondly, it isn’t easy to apprehend which way the market is moving using bar diagrams. Candle patterns
solve the problem with a compact representation of several data points.

Commonly Formed Candlestick Chart Patterns

Traders recognise several candlestick formations. But among these, some are more influential than others.
For anyone interested in technical trading understanding these patterns are must to form their strategies.

A single bar is called a candlestick. It contains a body and shadows at both ends, depicting opening, high,
low, and closing in the market. Two or more candlesticks together form a pattern, indicating the bullish or
bearish trend reversal.

Let’s take a look at different candlestick patterns. There are bullish and bearish patterns, as well as some
unique formations.

Bullish candlestick patterns

Bullish candlesticks indicate the end of a downtrend and signal traders to enter a long position. For bullish
patterns, the closing price is higher than the opening price and marked in green colour in the chart. Position
of the formation in the trendline and size of the real body determine how strong the trend reversal signal is.

9
A long-real body that closes near the high indicates strong price movements where buying forces were
strong. To confirm a trend reversal, traders, however, also take into account candlestick formed before the
bullish candle appears. Usually, feeble downward candles leading to the formation of a bullish candle is
what they look for and base their strategy only after the confirmation candle is formed.

Where to look for bullish candle patterns? Bullish trend reversals form in a downtrend. Unless it appears in a
downtrend, it is not a trend-reversal, just continuation of the existing trend.

Most bullish reversal formations require confirmation. Usually, a candle must appear in the uptrend,
confirming the trend reversal indicated by the bullish candle. Confirmation candles must appear within three
days of the formation of the bullish pattern.

The trend reversal pattern must conform to the other trading charts like trendlines, momentum oscillator, or
volume indicators.

Bearish candlestick patterns

Bearish candlesticks appear in an uptrend, indicating a change in market sentiment from buying to selling.
Traders prepare to enter a short position when they spot bearish patterns in the uptrend. Bearish candles form
with real-body and upper and lower shadows. Usually, the lower shadow is longer indicating that market has
fished for the lower bottom, and selling strengths were strong. The closing can be below the opening because
of strong selling force.

Bearish candles are coloured red for easy identification. Like for bullish patterns, traders wait for the bearish
reversal pattern to confirm before taking a position. Not all bearish patterns are equally enforcing and hence,
traders must confirm a trend change with other trading charts before adjusting their position. Few things to
take notes of,

Size of the real-body– Clear formation of the real-body indicates strong market sentiment and eliminates
chances of retrace. It confirms bearish pull was more substantial than bullish forces and may end the buying
spree.

In bearish candles closing connects the downward shadow, means selling forces are taking control in the
market.

Position of the candle– Bearish reversal candle forms in the uptrend, usually forming after a weakened
bullish trend. Traders need to make sure it is a reversal signal and not a momentary reconciliation before
continuation of the existing trend. Therefore, they wait for the confirmation candle to appear after the
bearish pattern is formed.

10
Gaping formed between the bearish candle and the confirmation candle is also an important indicator, more
significant the gap stronger is the trend reversal prediction.

The Bottom Line

Candlestick patterns allow traders to garner strong market insights regarding asset price movements. These
are unique patterns that capture price movements at different time frames in each candle, depicting opening,
closing, high, and low prices of a day. The rising popularity of candles often overshadows the reliability
issue. But traders overcome that by using other technical tools in association with candlestick patterns. It is,
therefore, important for any day trader to identify and interpret critical candlestick patterns to stay on top of
asset price movements and capitalise on opportunities.

What is Bank nifty index: Nifty Bank, or Bank Nifty, is an index comprised of the most liquid and
large capitalised Indian banking stocks. It provides investors with a benchmark that captures the capital
market performance of Indian bank stocks. The index has 12 stocks from the banking sector.

LIST OF BANK NIFTY STOCKS AND THEIR WEIGHTAGE.

COMPANY NAME WEIGHT

HDFCBANK 27.04%
ICICIBANK 23.03%
KOTAKBANK 11.72%
SBIN 11.27%
AXISBANK 11.18%
INDUSINDBK 5.58%
AUBANK 2.69%
BANDHANBNK 1.98%
FEDERALBNK 1.68%
BANKBARODA 1.84%
IDFCFIRSTB 1.08%
PNB 0.91%

11
Banking Sector
According to the Reserve Bank of India (RBI), the Indian banking sector is adequately capitalized and well
regulated. The financial and economic conditions in the country are much better than any other country in
the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have
weathered the global downturn well.
Indian banking has recently witnessed the introduction of innovative banking models such as payments and
small finance banks. In and Post payment banks. Programs such as these, along with significant banking
sector reforms such as digital payments, unbanking, the rise of Indian NBFCs and fintechs, have
significantly boosted India’s financial inclusion and helped jump-start the country’s credit cycle.
India’s digital payments system has evolved the most among 25 countries, with India’s Instant Payment
Service (IMPS) the only system ranked fifth in the Faster Payments Innovation Index (FPII).* India’s
Unified Payments Interface (UPI) has also revolutionized real- time payments and has been trying to
increase its global reach in recent years.
Banking is said to be a mirror of the health of the economy. A sound banking system serves as an important
enabler for a country to do business. During the recent global crisis, the Indian banking industry has come
out on top thanks to the stringent provisions of the central bank.
Technical analysis is the study of market actions, primarily through the use of charts, in order to predict
future price trends. It is a method of evaluating securities by analysing statistics generated by market
activity, such as past prices and volume. They mainly try to predict short-term price levels. For individuals,
this is an important criterion for investing in a particular company. It also provides a basis for investment
decisions. It is one of the most commonly used measures for checking and analysing fundamental price
developments. For this reason, a number of different tools were considered.
This refers to the study of market generated data such as prices and volume to determine the future direction
of price movement.
Modern banking in India originated in the mid-18th century. Early banks included the Bank of Hindustan,
founded in 1770 and liquidated in 1829–32; and the General Bank of India, which was founded in 1786 but
went bankrupt in 1791.
In fact, the decision made on the basis of technical analysis is made only after inferring the market trends
and assessing the future movement of the stock based on the market trend. It assumes that the market is
efficient and price has already been taken into account along with firm and industry related factors. It is
because of this assumption that many financial experts consider technical analysis to be a powerful tool that
is effective for short-term investments.
The largest and oldest bank still in existence is the State Bank of India (SBI). It was established and started
functioning as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed the Bank of Bengal. It was
one of three banks established by the President’s Government, the other two being the Bank of Bombay in
12
1840 and the Bank of Madras in 1843. The three banks were amalgamated in 1921 to form the Imperial
Bank of India which, after India’s independence, in 1955 became the State Bank of India. The Presidency
Banks acted as quasi-central banks for many years, as did their successors until the Reserve Bank of India
was established in 1935 within the Reserve Bank of India. Act, 1934.
In 1960, State Banks of India acquired control over eight state-affiliated banks under the State Bank of India
(Subsidiary Banks) Act, 1959. However, the merger of these associated banks with SBI took effect on 1
April 2017. In 1969, the Government of India nationalized 14 large private banks; one of the big banks was
Bank of India. In 1980, another 6 private banks were nationalized. These nationalized banks are the majority
of lenders in the Indian economy. They dominate the banking sector due to their large size and extensive
networks.

Technical analysis involves the use of various methods for charting, counting, interpreting charts and graphs
to assess price performance and condition. It is a financial analysis tool that not only studies but also reflects
numerical and graphical relationships between important financial factors.

Background behind candlestick patterns: Candlestick charts are a technical tool that packs data
for multiple time frames into single price bars. This makes them more useful than traditional open, high,
low, close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns
that may predict price direction once completed

Traditionally, candlesticks are best used on a daily basis, the idea being that each candle captures a full
day’s worth of news, data, and price action. This suggests that candles are more useful to longer-term or
swing traders.

Historical background of candlestick patterns: Proper colour coding adds depth to this
colourful technical tool, which dates back to 18th century Japanese rice traders.

They were introduced to the Western world by Steve Nison in his book Japanese Candlestick Charting
Techniques, first published in 1991

Brief profile of the study area: The area between the open and the close is called the real body, price
excursions above and below the real body are shadows (also called wicks). Wicks illustrate the highest and
lowest traded prices of an asset during the time interval represented. The body illustrates the opening and
closing trades.

13
 The price range is the distance between the top of the upper shadow and the bottom of the lower shadow
moved through during the time frame of the candlestick. The range is calculated by subtracting the low price
from the high price.

Candlesticks can also show the current price as they're forming, whether the price moved up or down over
the time phrase and the price range of the asset covered in that time.

Rather than using the open, high, low, and close values for a given time interval, candlesticks can also be
constructed using the open, high, low, and close of a specified volume range.

Analysis of following candlestick patterns in these research:

14
BULLISH ENGULFING

What Is a Bullish Engulfing Pattern?

A bullish engulfing pattern is a white candlestick that closes higher than the previous day's opening after
opening lower than the previous day's close. It can be identified when a small black candlestick, showing a
bearish trend, is followed the next day by a large white candlestick, showing a bullish trend, the body of
which completely overlaps or engulfs the body of the previous day’s candlestick.

Some examples of Bullish Engulfing.

15
In the above two examples of bullish engulfing we can completely see that the big green candle which is
formed on the second day that completely engulfs the first day black candle. Which is formed at the bottom
and the trend also changes from down trend two up trend.

16
Bearish engulfing

What is a Bearish Engulfing Pattern?

A bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern
consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that
eclipses or "engulfs" the smaller up candle.

Some examples of Bearish engulfing

17
Above both the images are of bearish engulfing. It clearly shows that the black candle completely engulfs
the previous white candle. The second candle it gives us the indication that bears have entered in the market
and prices are likely to fall down.

18
Morning Star

What Is a Morning Star?

A morning star is a visual pattern consisting of three candlesticks that are interpreted as bullish signs by
technical analysts. A morning star forms following a downward trend and it indicates the start of an upward
climb. It is a sign of a reversal in the previous price trend.

Some examples of Morning star.

19
Morning star is a three candle pattern. Above both examples showcases the formation of morning star.
Morning star is formed at the end of downtrend. And from there a new up-trend is formed. Which indicates
the bulls have entered and prices may go up.

20
Evening Star

What Is an Evening Star?

An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to
reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-
bodied candle, and a red candle.

Some examples of Evening star.

21
Evening star is a three candle pattern. Above both examples showcases the formation of evening star.
Evening star is formed at the end of up-trend. And from there a new downtrend is formed. Which indicates
the bears have entered and prices may fall.

22
Hammer

What Is a Hammer Candlestick?

A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower
than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-
shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the
candlestick represents the difference between the opening and closing prices, while the shadow shows the
high and low prices for the period.

Some examples of Hammer.

23
Hammer is considered has a bullish pattern, formed at the end of downtrend.The colour of the candle do not
matter most, but green colour indicates more bullishness in the price.

24
Shooting Star

What Is a Shooting Star?

A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small
real body near the low of the day. It appears after an uptrend.1 Said differently, a shooting star is a type of
candlestick that forms when a security opens, advances significantly, but then closes the day near the open
again.For a candlestick to be considered a shooting star, the formation must appear during a price advance.
Also, the distance between the highest price of the day and the opening price must be more than twice as
large as the shooting star's body. There should be little to no shadow below the real body.

Some examples of Shooting Star

25
Above both the examples of shooting star we can clearly see that after the formation of the pattern at the top
of the uptrend there is an bearish movement seen the chart.

26
Bearish Inside Bar Candle

What Are Inside Days?

Inside days refer to a candlestick pattern that forms after a security has experienced daily price
ranges within the previous day's high-low range. That is, the price of the security has traded
"inside" the upper and lower bounds of the previous trading session. It may also be known as
"inside bars." Inside days may indicate consolidation or lower price volatility.Inside days may
be contrasted with outside days, in which a day's candlestick chart exceeds the bounds of a prior
day's high and low.

Some examples of Bearish Inside Bar Candlestick

27
In both the above images there is an formation of inside candle as the price broke the first candles low the
price started to move in downward trend. In both the images the sellers are more active or we can say sellers
are more than buyers.

28
Bullish Inside Bar Candlestick

What Are Inside Days?

Inside days refer to a candlestick pattern that forms after a security has experienced daily price
ranges within the previous day's high-low range. That is, the price of the security has traded
"inside" the upper and lower bounds of the previous trading session. It may also be known as
"inside bars." Inside days may indicate consolidation or lower price volatility. Inside days may
be contrasted with outside days, in which a day's candlestick chart exceeds the bounds of a prior
day's high and low.

Some examples of Bullish Inside Bar Candlestick

29
In both the above images there is an formation of inside candle as the price broke the first candles high the
price started to move in up trend. In both the images the buyers are more active or we can say buyers are
more than sellers.

30
Definitions of related aspects:

What Is Technical Analysis?

Technical analysis is a trading discipline employed to evaluate investments and identify trading
opportunities by analysing statistical trends gathered from trading activity, such as price movement and
volume. Unlike fundamental analysis, which attempts to evaluate a security's value based on business
results such as sales and earnings, technical analysis focuses on the study of price and volume.

KEY TAKEAWAYS

• Technical analysis is a trading discipline employed to evaluate investments and identify trading
opportunities in price trends and patterns seen on charts.

• Technical analysts believe past trading activity and price changes of a security can be valuable indicators of
the security’s future price movements.

• Technical analysis may be contrasted with fundamental analysis, which focuses on a company’s financials
rather than historical price patterns or stock trends. Finance, technical analysis is an analysis methodology
for forecasting the direction of prices through the study of past market data, primarily price and volume.
Behavioural economics and quantitative analysis use many of the same tools of technical analysis, which,
being an aspect of active management, stands in contradiction to much of modern portfolio theory. The
31
efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which
states that stock market prices are essentially unpredictable.

Characteristics

Technical analysis employs models and trading rules based on price and volume transformations, such as the
relative strength index, moving averages, regressions, inter-market and intra-market price correlations,
business cycles, stock market cycles or, classically, through recognition of chart patterns.
Technical analysis stands in contrast to the fundamental analysis approach to security and stock analysis. In
the fundamental equation M = P/E technical analysis is the examination of M (multiple). Multiple
encompasses the psychology generally abounding, i.e. the extent of willingness to buy/sell. Also in M is the
ability to pay as, for instance, a spent-out bull can’t make the market go higher and a well-heeled bear won’t.
Technical analysis analyses price, volume, psychology, money flow and other market information, whereas
fundamental analysis looks at the facts of the company, market, currency or commodity. Most large
brokerage, trading group, or financial institutions will typically have both a technical analysis and
fundamental analysis team.
In the 1960s and 1970s it was widely dismissed by academics. In a recent review, Irwin and Park reported
that 56 of 95 modern studies found that it produces positive results but noted that many of the positive
results were rendered dubious by issues such as data snooping, so that the evidence in support of technical
analysis was inconclusive; it is still considered by many academics to be pseudoscience. Academics such as
Eugene Fama say the evidence for technical analysis is sparse and is inconsistent with the weak form of the
efficient-market hypothesis. Users hold that even if technical analysis cannot predict the future, it helps to
identify trends, tendencies, and trading opportunities.

While some isolated studies have indicated that technical trading rules might lead to consistent returns in the
period prior to 1987, most academic work has focused on the nature of the anomalous position of the foreign
exchange market. It is speculated that this anomaly is due to central bank intervention, which obviously
technical analysis is not designed to predict. Recent research suggests that combining various trading signals
into a Combined Signal Approach may be able to increase profitability and reduce dependence on any single
rule.

The Underlying Assumptions of Technical Analysis:

There are two primary methods used to analyse securities and make investment decisions: fundamental
analysis and technical analysis. Fundamental analysis involves analysing a company’s financial statements
to determine the fair value of the business, while technical analysis assumes that a security’s price already
reflects all publicly-available information and instead focuses on the statistical analysis of price movements.
32
Technical analysis attempts to understand the market sentiment behind price trends by looking for patterns
and trends rather than analysing a security’s fundamental attributes.
Charles Dow released a series of editorials discussing technical analysis theory. His writings included two
basic assumptions that have continued to form the framework for technical analysis trading.

1. Markets are efficient with values representing factors that influence a security’s price, but

2. Market price movements are not purely random but move in identifiable patterns and trends that tend to
repeat over time.3

The efficient market hypothesis (EMH) essentially means the market price of a security at any given point in
time accurately reflects all available information, and therefore represents the true fair value of the security.
This assumption is based on the idea that the market price reflects the sum total knowledge of all market
participants. While this assumption is generally believed to be true, it can be affected by news or
announcements about a security that may have varied short-term or long-term influence on a security’s price.
Technical analysis only works if markets are weakly efficient.
The second basic assumption underlying technical analysis, the notion that price changes are not random,
leads to the belief of technical analysts that market trends, both short-term and long-term, can be identified,
enabling market traders to profit from investing based on trend analysis.
Today, technical analysis is based on three main assumptions:
1: Price moves in trends
Technical analysts believe that prices move in short-, medium-, and long-term trend. In other words, a stock
price is more likely to continue a past trend than move erratically. Most technical trading strategies are based
on this assumption.4

2: History tends to repeat itself

Technical analysts believe that history tends to repeat itself. The repetitive nature of price movements is
often attributed to market psychology, which tends to be very predictable based on emotions like fear or
excitement. Technical analysis uses chart patterns to analyse these emotions and subsequent market
movements to understand trends. While many form of technical analysis have been used for more than 100
years, they are still believed to be relevant because they illustrate patterns in price movements that often
repeat themselves.

33
3:The market discounts everything
Many experts criticize technical analysis because it only considers price movements and ignores
fundamental factors. Technical analysts believe that everything from a company’s fundamentals to broad
market factors to market psychology is already priced into the stock. This removes the need to consider the
factors separately before making an investment decision. The only thing remaining is the analysis of price
movements, which technical analysts view as the product of supply and demand for a particular stock in the
market.
Strengths and weakness of Technical Analysis

Not Just for stocks

Technical analysis has universal applicability. It can be applied to any financial instrument - stocks, futures
and commodities, fixed-income securities, forex, etc.
Focus on price
Fundamental developments are followed by price movements. By focusing only on price action, technicians
focus on the future. The price pattern is considered as a leading indicator and generally leads the economy
by 6 to 9 months. To track the market, it makes sense to look directly at the price movements. More often
than not, change is a subtle beast. Even though the market is prone to sudden unexpected reactions, hints
usually develop before significant movements. You should refer to periods of accumulation as evidence of
an impending advance and periods of distribution as evidence of an impending decline.
Supply, demand, and price action
Technicians make use of high, low and closing prices to analyse the price action of a stock. A good analysis
can be made only when all the above information is present separately, these will not be able to tell much.
However, taken together, the open, high, low and close reflect forces of supply and demand.
Support and resistance
Charting is a technique used in analysis of support and resistance level. These are trading range in which the
prices move for an extended period of time, saying that forces of demand and supply are deadlocked. When
prices move out of the trading range, it signals that either supply or demand has started to get the upper
hand. If prices move above the upper band of the trading range, then demand is winning. If prices move
below the lower band, then supply is winning.
Pictorial price history
A price chart offers most valuable information that facilitates reading historical account of a security’s price
movement over a period of time. Charts are much easier to read than a table of numbers. On most stock
charts, volume bars are displayed at the bottom. With this historical picture, it is easy to identify the
following:
• Market reactions before and after important events
• Past and present volatility
34
• Historical volume or trading levels
• Relative strength of the stock versus the index.
Assist with entry point
Technical analysis helps in tracking a proper entry point. Fundamental analysis is used to decide what to buy
and technical analysis is used to decide when to buy. Timings in this context play a very important role in
performance. Technical analysis can help spot demand (support) and supply (resistance) levels as well as
breakouts. Checking out for a breakout above resistance or buying near support levels can improve returns.
First of all you should analyse stock’s price history. If a stock selected by you was great for the last three
years has traded flat for those three years, it would appear that market has a different opinion. If a stock has
already advanced significantly, it may be prudent to wait for a pullback. Or, if the stock is trending lower, it
might pay to wait for buying interest and a trend reversal.
Weaknesses of Technical Analysis

Analyst bias
Technical analysis is not hard core science. It is subjective in nature and your personal biases can be
reflected in the analysis. It is important to be aware of these biases when analysing a chart. If the analyst is a
perpetual bull, then a bullish bias will overshadow the analysis. On the other hand, if the analyst is a
disgruntled eternal bear, then the analysis will probably have a bearish tilt.
Open to interpretation
Technical analysis is a combination of science and art and is always open to interpretation. Even though
there are standards, many times two technicians will look at the same chart and paint two different scenarios
or see different patterns. Both will be able to come up with logical support and resistance levels as well as
key breaks to justify their position. Is the cup half-empty or half-full? It is in the eye of the beholder.
Too late
You can criticize the technical analysis for being too late. By the time the trend is identified, a substantial
move has already taken place. After such a large move, the reward to risk ratio is not great. Lateness is a
particular criticism of Dow Theory.
Always another level
Technical analysts always wait for another new level. Even after a new trend has been identify ed, there is
always another “important” level close at hand. Technicians have been accused of sitting on the fence and
never taking an unqualified stance. Even if they are bullish, there is always some indicator or some level that
will qualify their opinion.
Trader’s remorse
An array of pattern and indicators arises while studying technical analysis. Not all the signals work. For
instance: A sell signal is given when the neckline of a head and shoulders pattern is broken. Even though this
35
is a rule, it is not steadfast and can be subject to other factors such as volume and momentum. In that same
vein, what works for one particular stock may not work for another. A 50-day moving average may work
great to identify support and resistance for Infosys, but a 70-day moving average may work better for
Reliance. Even though many principles of technical analysis are universal, each security will have its own
idiosyncrasies.
TA is also useful in controlling risk
It is Technical Analysis only that can provide you the discipline to get out when you’re on the wrong side of
a trade. The easiest thing in the world to do is to get on the wrong side of a trade and to get stubborn. That is
also potentially the worst thing you can do. You think that if you ride it out you’ll be okay. However, there
will also be occasions when you won’t be okay. The stock will move against you in ways and to an extent
that you previously found virtually unimaginable.
It is more important to control risk than to maximize profits.
There is asymmetry between zero and infinity. What does that mean? Most of us have very finite capital but
infinite opportunities because of thousands of stocks. If we lose an opportunity, we will have thousands
more tomorrow. If we lose our capital, will we get thousands more tomorrow? It is likely that we will not.
We will also lose our opportunities. Our capital holds more worth to us than our opportunities because we
must have capital in order to take advantage of tomorrow’s opportunities. It is more important to control risk
than to maximize profits Technical Analysis, if practiced with discipline, gives you specific parameters for
managing risk. It’s simply supply and demand. Waste what’s plentiful, preserve what’s scarce. Preserve your
capital because your capital is your opportunity. You can be right a thousand times, become very wealthy
and then get wiped out completely if you manage your risk poorly just once. One last time: That is why it is
more important to control risk than to maximize profits How to know what to look for? How to organize
your thinking in a market of thousands of stock trading millions of shares per day? How to learn your way
around? Technical Analysis answers all these questions.

What Is A Candlestick?

A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and
closing prices of a security for a specific period. It originated from Japanese rice merchants and traders to
track market prices and daily momentum hundreds of years before becoming popularized in the United
States. The wide part of the candlestick is called the "real body" and tells investors whether the closing
price was higher or lower than the opening price (black/red if the stock closed lower, white/green if the
stock closed higher).

36
Why candlestick charts?
What does candlestick charting offer that typical Western high-low bar charts do not? Instead of vertical line
having horizontal ticks to identify open and close, candlesticks represent two dimensional bodies to depict
open to close range and shadows to mark day’s high and low. For several years, the Japanese traders have
been using candlestick charts to track market activity. Eastern analysts have identified a number of patterns
to determine the continuation and reversal of trend. These patterns are the basis for Japanese candlestick
chart analysis. This places candlesticks rightly as a part of technical analysis. Japanese candlesticks offer a
quick picture into the psychology of short term trading, studying the effect, not the cause. Applying
candlesticks means that for short-term, an investor can make confident decisions about buying, selling, or
holding an investment.

Candlestick analysis
One cannot ignore that investor’s psychologically driven forces of fear; greed and hope greatly influence the
stock prices. The overall market psychology can be tracked through candlestick analysis. More than just a
method of pattern recognition, candlestick analysis shows the interaction between buyers and sellers. A
white candlestick indicates opening price of the session being below the closing price; and a black
candlestick shows opening price of the session being above the closing price. The shadow at top and bottom
indicates the high and low for the session. Japanese candlesticks offer a quick picture into the psychology of
short term trading, studying the effect, not the cause. Therefore if you combine candlestick analysis with
other technical analysis tools, candlestick pattern analysis can be a very useful way to select entry and exit
points.

37
2. RESEARCH METHODOLOGY

What is Research Methodology?

Research methodology is the specific procedures or techniques used to identify, select, process, and analyze
information about a topic. In a research paper, the methodology section allows the reader to critically
evaluate a study’s overall validity and reliability. The methodology section answers two main questions:
How was the data collected or generated? How was it analysed?
Basically, Research methodology simply refers to the practical “how” of any given piece of research. More
specifically, it’s about how a researcher systematically designs a study to ensure valid and reliable results
that address the research aims and objectives. For example, how did the researcher go about deciding?

• What data to collect (and what data to ignore)

• Who to collect it from (in research, this is called “sampling design”)

• How to collect it (this is called “data collection methods”)

• How to analyse it (this is called “data analysis methods”)

Objectives:

1. To find out how effective candlestick patterns work on a specific index.

2. To find out does market respects candlestick patterns.
3. To get in-depth knowledge of candlestick patterns.
4. To find out how much points does Bank nifty gains or falls after the formation of candle stick
pattern.

38
PRIMARY AND SECONDARY DATA

There are two different types of sources when collecting data: primary and secondary data sources. Primary
sources are directly related to the study purpose. Primary data consists of all the data collected throughout
the study that directly related to the study purpose and it was collected by doing a survey through
questionnaire method and preparing a form, the survey form was prepared through Google forms. Both
personally gathered as well as data from a third party that has been collected with an equivalent purpose.
Secondary data on the other hand contains relevant data that has been collected with a different purpose, but
from which conclusions is valuable for the purpose and it was collected from various newspaper articles,
news channel, books and websites.

LIMITATIONS OF THE STUDY

1. The research do not contain the information of the candlestick patterns forming on other time frames
like 1,3,5,15,30,45 minutes 1,2,3,4 hours 1day, 1week, 1month, 3month, 6month, 12month.
2. The research also ignores the other index like NIFTY, SENSEX. Or the other sector index like Nifty
Pharma, Auto, Energy, Infrastructure, Media, IT, Telecom, etc.
3. The study does not focus on the fundamental perspective of the stock. As the study is totally based on
Technical analysis.
4. The study ignores the other candlestick chart patterns like:

 Piercing pattern
 Bullish harami
 Bearish harami
 Dark cloud cover
 Hanging man
 Three white soldiers
 Three black crows
 Marubozu
 Inverted hammer

39
3. LITERATURE REVIEW

1. Department of Economics:

Their study’s objective was to examine the predictive power and the profitability of technical analysis
indicators based on candlestick patterns

Their study’s data consist of OHLC open, high low and closing price of 29 stocks included in the
Swedish NASDAQ OMXS30 index. The period tested was from 19 October 2007 till 30 December 2015.

They concluded their study in such a way that their study finds little value in candlestick patterns as
buy/short indicators over short holding periods.

2. International Journal of Innovative Technology and Exploring Engineering(IJITEE):

Their study uses data of NIFTY 50 index member stocks from January 2000 to December 2015.

Because of the long duration of 16 years of study only 17 stocks were considered as the sample of their
study.

Following are the stocks which they used for their study:

40
SL STOCK INDUSTRY SECTOR
NO
1 ACC CEMENT
2 AMBUJACEM CEMENT
3 BHEL INDUSTRIAL
MANUFACTURING
4 CIPLA PHARMA
5 HDFC FIN.SERVICES
6 HDFCBANK FIN.SERVICES
7 HEROMOTOCO AUTOMOBILES
8 HINDALCO METALS
9 HINDLEVER FMCG
10 INFY IT
11 ITC FMCG
12 M&M AUTOMOBILES
13 RELIANCE ENERGY
14 SBIN FIN.SERVICES
15 TATAMOTORS AUTOMOBILES
16 TATAPOWER ENERGY
17 TATASTEEL METALS

3. EXAMINATION IN TECHNOLOGY, BASIC LEVEL, 15 HPSTOCKHOLM, SWEDEN 2017:

Their study performed a comparative analysis and evaluated the impact of different Relative Strength Index
(RSI) and stop loss configurations on a trading algorithm based on candlesticks patterns. It was tested on
both the Swedish OMXS30 market and the UK FTSE100 market. By tweaking the configurations, RSI and
stop loss was found to have a substantial impact on the performance of the algorithm. On both OMXS30 and
FTSE100 markets the difference between configurations was shown to be significant.

4. SAGE JOURNALS:

Their article investigates the probability of candlestick bullish & bearish reversal pattern when applied to
component stocks of the SET50 index for the 10-year period from July 3, 2006, to June 30, 2016.and the
holdings periods were 1day, 3days, 5days and 10days. Their study mainly consisted Two exit strategy. One
is the MYR exit strategy (Marshall et al., 2006) and the other is the CL exit strategy (Caginalp & Laurent,
1998).

41
 Their data was mainly in statistical form. They do had some limitations in their study like, they did not
investigated the roles of trend, support and resistance lines. They included the components of only the
largest 50 stocks in SET (The stock exchange of Thailand).

5. PROCEDIA COMPUTER SCIENCE:

Their research was based on the effectiveness of candlestick chat patterns for the Brazilian stock market.
By Hercules A do Pardo, Edilson Ferneda, Luis C.R.Morais, Alfredo J.B. Luiz, Eduardo Matsura.

They used primary data in their studywhere the prices were from 2005-2009 and the group of stocks
which were negotiated in Bovespa (Sao Paulo Stock Exchange) . 16 pattern were studied

PRIOR TREND NAME SUBSEQUENT

PATTERNS
HYPOTTHESIS
BULL BEARISH ENGULFING GO DOWN
BEAR BULLISH ENGULFING GO UP
BULL HARAMI BEARISH GO DOWN
BEAR HARAMI BULLISH GO UP
BULL EVENING STAR GO DOWN
BEAR MORNING STAR GO UP
BULL BEARISH ABANDONED BABY GO DOWN
BEAR BULLISH ABANDONED BABY GO UP
BULL HANGING MAN GO DOWN
BEAR HAMMER GO UP
BULL SHOOTING STAR GO DOWN
BEAR INVERTED HAMMER GO UP
BULL DARK CLOUD COVER GO DOWN
BEAR PIERCING PATTERN GO UP
BULL ONE BLACK CROW GO DOWN
BEAR ONE WHITE SOLDIER GO UP

42
4. DATA ANAYLYSIS, INTERPRETATION AND PRESENTATION

Data interpretation is the process of reviewing data and arriving at relevant conclusions using various
analytical methods. Data analysis assists researchers in categorizing, manipulating, and summarizing data to
answer critical questions.

In business terms, the interpretation of data is the execution of various processes. This process analyses and
revises data to gain insights and recognize emerging patterns and behaviours. These conclusions will assist
you as a manager in making an informed decision based on numbers while having all of the facts at your
disposal.

Importance of Data Interpretation

Make better decisions

Find trends and take action

Better resource allocation

43
Secondary data is collected form the period of 01/07/2022 to 30/12/2022 of Bank Nifty index. The data is
collected with the help of tradingview.com and investing.com.

HAMMER

POINTS GAINED DATE OF FORMATION

298.71 12-08-2022

228.07 12-09-2022

277.38 15-09-2022

387.15 21-02-2022

80.79 23-09-2022

62.3 29-09-2022

111.61 29-09-2022

146.65 03-10-2022

176.02 06-10-2022

67.03 13-10-2022

392.66 18-10-2022

230.24 20-10-2022

109.53 20-10-2022

67.98 28-10-2022

154.08 02-11-2022

190.77 04-11-2022

363.81 11-11-2022

203.79 14-11-2022

81.63 24-11-2022

152.17 09-12-2022

44
 Chart Title
400
350
300
250
200 Series1
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 3782.37

AVERAGE- 189.1185

MAXIMUM- 392.66

MINIMUM- 62.3

INTERPRETATION:
The above data is collected from 20 Hammer candlestick patterns formed on the spot chart of Bank nifty.
The above data analysis gives us the information that when there is a formation of Hammer candlestick
patterns the Bank nifty spot index gains on an average 189.1185 points. The total number of points gained
by these 20 Hammer candlestick is 3782.37. In which the lowest number of points gained is 62.3 and the
highest number of points gained is 392.66

45
SHOOTING STAR

POINTS GAINED DATE OF FORMATION

374.81 19-10-2022

139.33 20-10-2022

96.14 27-10-2022

125.4 07-11-2022

175.55 09-11-2022

125 15-11-2022

77.59 16-11-2022

151.94 23-11-2022

102.89 24-11-2022

389.78 25-11-2022

27.42 28-11-2022

240.67 29-11-2022

329.79 30-11-2022

128.5 02-12-2022

32.13 05-12-2022

78.53 06-12-2022

326.63 07-12-2022

675.15 15-12-2022

242.53 16-12-2022

173.26 19-12-2022

46
 POINTS GAINED
700
600
500
400
POINTS GAINED
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 4013.04

AVERAGE- 200.652

MAXIMUM- 675.15

MINIMUM- 27.42

INTERPRETATION:
The above data is collected from 20 Shooting star candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of Shooting star candlestick
patterns the Bank nifty spot index drops on an average 200.652 points. The total number of points dropped
by these 20 Shooting star candlesticks is 4013.04. In which the lowest number of points dropped is 27.42
and the highest number of points dropped is 675.15

47
BEARISHSH ENGULFING
POINTS GAINED DATE OF FORMATION
105.3 11-07-2022
184.9 21-07-2022
212.52 26-07-2022
436.75 02-08-2022
227.39 16-08-2022
145.7 25-08-2022
221.55 26-08-2022
236.94 19-09-2022
171.58 19-09-2022
350.56 28-09-2022
754.41 29-09-2022
320.82 19-10-2022
161.3 20-10-2022
221.56 27-10-2022
129.39 01-11-2022
157.75 09-11-2022
164.84 17-11-2022
397.78 16-12-2022
310.7 30-12-2022
259.08 02-01-2023

48
 POINTS GAINED
800
700
600
500
400 POINTS GAINED
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 5170.82

AVERAGE- 258.541

MAXIMUM- 754.41

MINIMUM- 105.3

INTERPRETATION:
The above data is collected from 20 Bearish Engulfing candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of Bearish Engulfing
candlestick patterns the Bank nifty spot index drops on an average 258.541 points. The total number of
points dropped by these 20 Bearish Engulfing candlesticks is 5170.82. In which the lowest number of points
gained is 105.3 and the highest number of points dropped is 754.41

49
BULLISH ENGULFING
POINTS GAINED DATE OF FORMATION
202.03 07-09-2022
215.13 16-09-2022
130.76 19-09-2022
107.56 26-09-2022
295.27 28-09-2022
80.15 29-09-2022
253.09 06-10-2022
366.61 07-10-2022
156.11 18-10-2022
202.64 19-10-2022
153.62 31-10-2022
65.5 04-11-2022
209.11 14-11-2022
140.49 16-11-2022
63.93 25-11-2022
604.4 07-12-2022
270.29 09-12-2022
318.69 22-12-2022
75.42 23-12-2022
783.22 29-12-2022

50
 POINTS GAINED
800
700
600
500
400 POINTS GAINED
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 4694.02

AVERAGE- 234.701

MAXIMUM- 783.22

MINIMUM- 63.9

INTERPRETATION:
The above data is collected from 20 Bullish Engulfing candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of Bullish Engulfing
candlestick patterns the Bank nifty spot index gains on an average 234.701 points. The total number of
points gained by these 20 Bullish Engulfing candlestick is 4694.02. In which the lowest number of points
gained is 63.9 and the highest number of points gained is 783.22

51
EVENING STAR
POINTS GAINED DATE OF FORMATION
74.25 12-09-2022
538.82 16-09-2022
584.74 28-09-2022
176.39 29-09-2022
475.66 11-10-2022
232.98 14-10-2022
128.24 17-10-2022
221.77 27-10-2022
568.77 28-10-2022
68.45 14-11-2022
177.98 16-11-2022
118.24 18-11-2022
279.84 01-12-2022
87.68 05-12-2022
133.06 12-12-2022
267.91 16-12-2022
40.23 19-12-2022
384.2 22-12-2022
338.94 23-12-2022
221.31 27-12-2022

52
 POINTS GAINED
600

500

400

300 POINTS GAINED

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 5119.46

AVERAGE- 255.973

MAXIMUM- 584.74

MINIMUM- 40.23

INTERPRETATION:
The above data is collected from 20 Evening star candlestick patterns formed on the spot chart of Bank nifty.
The above data analysis gives us the information that when there is a formation of Evening star candlestick
patterns the Bank nifty spot index drops on an average 255.973 points. The total number of points dropped
by these 20 Evening star candlestick is 5119.46. In which the lowest number of points dropped is 40.23 and
the highest number of points dropped is 584.74

53
MORNING STAR
POINTS GAINED DATE OF FORMATION
207.69 10-10-2022
250.96 11-10-2022
624.15 17-10-2022
233.25 20-10-2022
38.64 27-10-2022
133.88 28-10-2022
81.01 14-11-2022
200.15 16-11-2022
65.84 18-11-2022
119.89 21-11-2022
37.58 22-11-2022
388.33 25-11-2022
363.44 30-11-2022
336.29 05-12-2022
146.17 07-12-2022
272.2 12-12-2022
53.68 14-12-2022
203.88 19-12-2022
416.09 20-12-2022
789.75 29-12-2022

54
 POINTS GAINED
800
700
600
500
400 POINTS GAINED
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 4962.87

AVERAGE- 248.1435

MAXIMUM- 789.75

MINIMUM- 37.58

INTERPRETATION:
The above data is collected from 20 Morning star candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of Morning star candlestick
patterns the Bank nifty spot index gains on an average 248.1435 points. The total number of points gained
by these 20 Morning star candlestick is 4962.87. In which the lowest number of points gained is 37.58 and
the highest number of points gained is 789.75

55
BULLISH INSIDE BAR CANDLE
POINTS GAINED DATE OF FORMATION
232.56 06-10-2022
237.73 13-10-2022
149.71 14-01-2022
227.8 25-10-2022
80.8 01-11-2022
143.16 03-11-2022
66.62 04-11-2022
328.85 07-11-2022
172.54 09-11-2022
253.51 15-11-2022
57.61 18-11-2022
25.93 21-11-2022
184.8 23-11-2022
73.25 25-11-2022
62.43 29-11-2022
26.78 06-12-2022
242.01 08-12-2022
44.66 14-12-2022
414.75 27-12-2022
132.08 28-12-2022

56
 POINTS GAINED
450
400
350
300
250
200 POINTS GAINED
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 3157.58

AVERAGE- 157.879

MAXIMUM- 414.75

MINIMUM- 25.93

INTERPRETATION:
The above data is collected from 20 Bullish Inside Bar candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of 20 Bullish Inside Bar
candlestick patterns the Bank nifty spot index gains on an average 157.879 points. The total number of
points gained by these 20 Bullish Inside Bar candlestick is 3157.58. In which the lowest number of points
gained is 25.93 and the highest number of points gained is 414.75

57
BEARISHSH INSIDE BAR
CANDLE
POINTS GAINED DATE OF FORMATION
105.3 11-07-2022
184.9 21-07-2022
212.52 26-07-2022
436.75 02-08-2022
227.39 16-08-2022
145.7 25-08-2022
221.55 26-08-2022
236.94 19-09-2022
171.58 19-09-2022
350.56 28-09-2022
754.41 29-09-2022
320.82 19-10-2022
161.3 20-10-2022
221.56 27-10-2022
129.39 01-11-2022
157.75 09-11-2022
164.84 17-11-2022
397.78 16-12-2022
310.7 30-12-2022
259.08 02-01-2023

58
 POINTS GAINED
700
600
500
400
POINTS GAINED
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

SUM- 3990.23

AVERAGE- 199.5115

MAXIMUM- 637.48

MINIMUM- 24.92

INTERPRETATION:
The above data is collected from 20 Bearish Inside Bar candlestick patterns formed on the spot chart of Bank
nifty.
The above data analysis gives us the information that when there is a formation of Bearish Inside Bar
candlestick patterns the Bank nifty spot index drops on an average 199.5115 points. The total number of
points dropped by these 20 Bearish Inside Bar candlestick is 3990.23. In which the lowest number of points
dropped is 24.92 and the highest number of points dropped is 637.48

59
Conclusions

Technical analysis works on Pareto principle. It considers the market to be 80% psychological and 20%
logical. Fundamental analysts consider the market to be 20% psychological and 80% logical. Psychological
or logical may be open for debate, but there is no questioning the current price of a security. After all, it is
available for all to see and nobody doubts its legitimacy. The price set by the market reflects the sum
knowledge of all participants, and we are not dealing with lightweights here. These participants have
considered (discounted) everything under the sun and settled on a price to buy or sell. These are the forces of
supply and demand at work. By examining price action to determine which force is prevailing, technical
analysis focuses directly on the bottom line: What is the price? Where has it been? Where is it going? Even
though some principles and rules of technical analysis are universally applicable, it must be remembered that
technical analysis is more an art form than a science. As an art form, it is subject to interpretation. However,
it is also flexible in its approach and each investor should use only that which suits his or her style.
Developing a style takes time, effort and dedication, but the rewards can be significant.

60
Bibliography:

 https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=8877738&fileOId=8877838
 https://www.ijitee.org/wp-content/uploads/papers/v9i2/B7666129219.pdf
 https://www.diva-portal.org/smash/get/diva2:1114719/FULLTEXT01.pdf
 https://journals.sagepub.com/doi/full/10.1177/2158244017736799
 https://www.researchgate.net/publication/275541440_On_the_Effectiveness_of_Candlestick_Chart_
Analysis_for_the_Brazilian_Stock_Market
 https://www.investopedia.com/articles/active-trading/092315/5-most-powerful-candlestick-
patterns.asp

61