JAPANESE CANDLESTICK
Japanese candlestick is a very useful tool for analyzing stocks. Candlesticks gives us the same information as a bar chart, however they are easier to look at and more visual.
Here are the reasons why Japanese Candlestick is better than other charts:
Easier to see
More visual
Less confusing
Reliable patterns
Easily spot opportunities
Candlestick charting technique are now widely used by traders in the stock, futures, forex, commodities and options market to predict market psychology and trend. Candlestick charts clearly display the open, high, low, and closing prices much clearer than the modern-day bar-chart.
JAPANESE CANDLESTICK
Japanese candlestick is a very useful tool for analyzing stocks. Candl
esticks gives us the same information as a bar chart, however they are easier to look at and more visual.Here are the reasons why Japanese Candlestick is better than other charts:
Easier to see
More visual
Less confusing
Easily spot opportunities
Candlestick charting technique are now widely used by traders in the stock, futures, forex, commodities and options market to predict market psychology and trend. Candlestick charts clearly display the open, high, low, and closing prices much clearer than the modern-day bar-chart.
THE ANATOMY OF THE CANDLESTICKS
The black real body means that the close was lower than the opening.
The white real body means that the close was higher than the opening.
The rectangular portion of the candlestick is called the real body.
Real Body: The difference between the open and close; colored portion of the candlestick
Upper Shadow : The difference between the top of the real body and high of the day is the upper shadow (or upper wick)
Lower Shadow : The difference between the bottom of the real body and the low of the day is the lower shadow (or lower wick)
The height of the real body is the range between the day's open price and the day's close price. When this body is black, it means that the closing price was lower than the opening price. When the closing price is higher than the opening, the body is white
If the price closed higher than it opened, the candlestick would be white. If the price closed lower than it opened, the candlestick would be black.
The long, dark, filled-in real body represents a weak (bearish) close, while a long open, white-colored real body represents a strong (bullish) close. At a glance, notice how much easier it is with candlesticks to determine if the closing price was higher or lower than the opening price.
LONG WHITE CANDLESTICK (BULLISH)
Explanation
White candlestick is formed When the close is higher than the open
The long day represents a large price move from open to close. Long represents the length of the candle body.
Long describes the length of the candlestick body, the difference between the open price and the close price,. A long day represents a large price movement for the day. In other words, the open price and close price were considerably different.
The real body of the Long White Candlestick has a relatively longer length relative to other candlesticks on the chart.
The sizes of the upper and lower shadows are not important.
The Long White Candlestick is a signal indicating strong buying pressure.
The Long White Candlestick shows that the prices advanced significantly from open to close during the day under strong buying pressure and buyers were aggressive.
If a Long White Candlestick is seen after a long and significant rally, it can point out to excessive bullishness in the market that says that prices are at dangerously high levels.
The Long White Candlestick pattern indicates that the closing price is further above the opening price, with the price advancing significantly from open to close during the day Long.
LONG BLACK CANDLESTICK (BEARISH)
Explanation
The Long Black Candlestick represents strong selling pressure in the market.
Black Candlestick shows that prices declined from open to close during the day , with sellers controlling the trade throughout this process
The sizes of the upper and lower shadows are not important.
A longer black candlestick means that the close is further below the opening price. The prices decline significantly following the opening showing that sellers were aggressive.
A Long Black Candlestick may warn a turning point or mark a future resistance level after a long rally.
Long Black Candlestick pattern has low reliability reflecting only one day's trading.
and may both be pointing out to continuation or reversal. Thus it requires consideration of other candlesticks to confirm a trend.
DOWJONES CLOSING BELOW 50 SMA NEGATIVE FOR BULLS.MAIN SUPPORT @ 12710.MAIN RESISTANCE @ 12986.CLOSE AND SUSTAIN ABOVE 12990 NEED BULLS FOR NEXT UPTREND..BELOW 12710 WE CAN SEE SHARP FALL TILL 12632 - 12530
ASCENDING TRAINAGLE IN HDFC BANK.MAIN RESISTANCE @ 540.WATCHOUT FOR BREAKOUT...OR BRAEKDOWN??
RISING WEDGE IN BATA INDIA.WATCH OUT BREAKOUT OR BREAK DOWN IN BATA INDIA.... BREAKDOWN...??????
AXIS BANK DAILY CHART.CLOSE BELOW 20 AND 50 SMA NEGATIVE FOR BULLS .CLOSE ABOVE 1170 FOR BULLS FOR ANOTHER UPTREND.MAIN RESISTANCE @ 1243.
SBI HAVE TO BREAKOUT & CLOSE ABOVE TRENDLINE RESISTANCE.NEXT MAIN RESISTANCE @ 2374..YESTERDAY CLOSE ABOVE 20& 50 SMA GOOD FOR BULLS.MAIN SUPPORT @ 2175.
CLOSE BELOW 200 SMA SHOWING LOSING ITS BULLS POWER.BEARS MAY TRY TO EXTENT ITS FALL.MAIN SUPPORT @ 850 & 843.CLOSE BELOW 843 WE CAN SEE 815 IN FEW DAYS....BULLS HAVE TO CLOSE ABOVE 880 (200 SMA) FOR FURTHER UPTREND.
