Candlestick Patterns - Part 2
Bullish Engulfing pattern
Conditions,
- The stock must be in downtrend.
- Day 1 - It must open gap down, make a new low and close with a red body.
- Day 2 - It must open gap down, there must be huge buying so that it closes as a big green candle.
- The body of red candle formed on day 1 must be within the body of green candle formed on day 2 as shown in the picture below.
Bullish Engulfing
Stock: Grasim Industries
Time Frame: 1 Day
(Tap on image for full screen view)
Bearish Engulfing pattern
Conditions,
- The stock must be in uptrend.
- Day 1 - It must open gap up, make a new high and close with a green body.
- Day 2 - It must open gap up, there must be huge selling so that it closes as a big red candle.
- The body of green candle formed on day 1 must be within the body of red candle formed on day 2 as shown in the picture below.
Bearish Engulfing
Stock: Reliance Industries
Time Frame: 1 Day
(Tap on image for full screen view)
Conditions,
- The stock must be in downtrend.
- Day 1 - It must open gap down, make a new low and close with a red body.
- Day 2 - It must open gap down and must form a doji kind of candlestick.
- Day 3 - It must open gap up and form a big green candle.
Morning star
Stock: Dixon Technologies
Time Frame: 1 Day
(Tap on image for full screen view)
Evening star pattern
Conditions,
- The stock must be in uptrend.
- Day 1 - It must open gap up, make a new high and close with a green body.
- Day 2 - It must open gap up and must form a doji kind of candlestick.
- Day 3 - It must open gap down and form a big red candle.
Evening star
Stock: ICICI Bank
Time Frame: 1 Day
(Tap on image for full screen view)
Bullish Harami pattern
Conditions,
- The stock must be in downtrend.
- Day 1 - It must open gap down, make a new low and close with a red body.
- Day 2 - The opening price of day 2 must be greater than the closing price of day 1 and must form a candle with green body.
Bullish Harami
Stock: Reliance Industries
Time Frame: 1 Day
(Tap on image for full screen view)
(chart from www.tradingview.com)
Bearish Harami pattern
Conditions,
- The stock must be in uptrend.
- Day 1 - It must open gap up, make a new high and close with a green body.
- Day 2 - The opening price of day 2 must be less than the closing price of day 1 and must form a candle with red body.
Bearish Harami
Stock: Infosys
Time Frame: 1 Day
(Tap on image for full screen
view)
(chart from www.tradingview.com)
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Upcoming topics,
- Head and shoulder Pattern & Inverse head and shoulder pattern
- Support and Resistance
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