Candle stick advanced Level

Doji Candlestick Pattern

 Doji is a continuation candle, sometimes it can be act as a reversal.
 If Doji forms at the support level then it can works as a bullish reversal, if it forms at the
resistances level it can work as a bearish reversal.
 Doji means indecision between buyers & sellers.
 Doji open and close at the same lever, which indicates neither bulls / bears in control.
 If Day 1 Doji candle form and the next day candle closed above doji means bulls are in
action for bears will be control if next day closed below doji.
 Confirmation 1 is very important. Confirmation candle means day 2 candle closes below /
above the wick of the Doji.
 Confirmation 2 In bullish trend mark the support, If the price breaks the support candle
then it can be confirmation for the bearish reversal.
 If a group of doji’s form then the reaction going to fast. Specially at the top.
 If doji forms in a side way market that doji candle doesn’t have that much worth.
 Doji at the young trend doesn’t worth,
Hammer Candlestick Pattern
 Hammer wick must be 2x of body.
 Price opens at 100 & falls to 80 Rs/- however at last session bulls back in action and pull
the price to 110 and closed at 110 rs.(This is a perfect hammer). Body is Green Colour.
 Weak Hammer : Price opens at 100 & falls to 80Rs/- However at last session bulls are back
in action and pull the price to 95 rs( Body is Red Colour). This indicates that bulls are
exhausted. So, it considered as weak hammer.
 Low of the hammer has a high probability of being retested and undercut. (Price will
comeback to retest the hammer low / wick. It givens an another opportunity to jump into
the bullish trade.
Engulfing Candlestick Pattern
 A perfect Engulfing candle is when the candle engulf previous candle lower & higher
wicks.
 A Week Engulfing candle means when it uncover some wicks of the previous day candle.
But body must have covered.
 Bearish Engulfing will act as a strong resistance in the future.
Piercing Candlestick Pattern
 Relevance of candle Appearances
Bullish Candles Bearish Candles
 At market bottoms  At market tops
 At breakouts  At breakouts
 At support in an ongoing Uptrend  At resistance in an ongoing downtrend

Any Bullish / Bearish Candle Appearances in a consolidation is Irrelevance and doesn’t have any worth of
them.

Contrarian Indication
 Strong Bullish candle after an extended  Strong Bearish candle after an extended
uptrend
downtrend
 It’s signal of reversal.  It’s signal reversal