Day-3 Types of Candles I Successful Trading

Types of andles which is a type of chart used in technical analysis to display the high, low, open, and close prices of a security for a specific time period in a share market.

Types of Candles ,types of chart Heikenshi candle reading.

  • Red Candle – Bearish means Seller.
  • Green Candle – Bullish means Buyer.
  • Bullish- Which opens at low and close at high is known as bullish.
  • Bearish- Which opens at high and close at low is known as bearish.

Types of Candles

1.Marubozu

  • In technical analysis Marubozu is a type of candlestick pattern characterized by a long body without a shadow. This pattern indicates strong buying or selling pressure in the direction of the candlestick.
  • In this type of candle their will be not seen any weak.

Types of Marubozu-

  1. Bullish Marubozu
  • An elongated (green or white) body with no shadows (or very small shadows) at both ends.
  • This pattern indicates that buyers dominated the entire trading session, pushing the price from open to close without significant resistance from sellers. It often indicates a continuation of a bullish trend or a possible reversal from a bearish trend.

2. Bearish Marubozu

  • An elongated (red or black) body with no shadows (or very small shadows) at both ends.
  • This pattern indicates that sellers dominated the entire trading session, driving the price down from open to close without significant resistance from buyers. It often indicates the continuation of a bearish trend or a possible reversal from a bullish trend.

Types of candles

2.Doji

A doji is a type of candlestick pattern that often indicates indecision or potential reversals in the market. It is characterized by a very small body, meaning that opening and closing prices are almost the same, and relatively long shadows.

Types of Doji

1. Standard doji

  • Open and close prices are almost identical, resulting in very small or non-existent bodies. Shadows can be of different lengths.
  • This doji indicates uncertainty in the market, where neither buyers nor sellers have control.

2. Doji with long legs

  • Doji with long upper and lower shadows.
  • When prices move up and down significantly in a session before closing or close to the opening price, it shows considerable volatility and indecision.

3. Gravestone Doji

  • The open, close, and low prices are at or near the session low, with a long upper shadow.
  • Often considered a bearish reversal pattern, especially if it appears after an uptrend, it shows that buyers pushed prices up, but sellers brought them back down.

4. Dragonfly Doji

  • Open, close and high prices are at or near session highs, with long lower shadows.
  • Often considered a bullish reversal pattern, especially if it appears after a downtrend, it shows that sellers have pushed prices down, but buyers have managed to pull them back.

Types of candles.

3.Hammer

A hammer is a type of candlestick pattern that indicates a potential reversal in the market, typically from a bearish trend to a bullish trend. It is characterized by a small body with a long lower shadow and little or no upper shadow.

  • Good Reversal – Their are 2 logic in this hammer.
    • If open 100, close 90 and low at 70.
    • Whenever Red hammer formation happens red hammer is also called Hanging man.
    • In this little weak is also seen this is not positive sign/this is a negative sign.
    • it both work in +/- sign.
    • In this hammer want to wait till the high break/high low happens.
  • Strong Reversal – 115 close,100 open and low at 80.
    • In this hammer buyers will be strong.
    • Always absorb the body and the wick the wick at least should be twice then that is called perfect hammer.
    • If in uptrade hammer has seen chances are high breakuptrade reversal/uptrade continous.
  • Good Reversal/Inverted – is also called inverted
    • 100 open, close 110 and high at 150.
    • If it low break then it will down continous otherwise .
    • If high break then it will high/fast continous movementum.
    • Shooting star is Good news.
  • Strong Reversal/Inverted – ,close 90, open 100 and high at140.
    • Buyer are active.
    • open and close at very very.
    • In red hammer if any stock is going upside nd it low break then downward formation.
    • Bullish movementum to go bearish movementum are chances.
    • Types of candles

These are various types of chart used in technical analysis.

  • Candle stick chart -A candlestick chart uses individual “candles” to show the open, high, low, and close prices for a specific time period. The body of the candle represents the range between the open and close, while the wicks (or shadows) represent high and low prices.Types of candles
  • Heikin Ashi chart – Heikin-Ashi charts smooth price data to create more easily interpreted trends. The calculation for the open, close, high and low of each candle is based on the average of the previous period.
  • Bar chart– A bar chart shows the open, high, low and close prices with vertical lines and horizontal ticks. The vertical line shows the range, while the left tick shows the opening price and the right tick shows the closing price. Types of candles
  • Line chart -A line chart plots the closing prices of a security over a specified time period, connecting the data points with a solid line.
  • Area chart -An area chart is similar to a line chart, but the area below the line is filled with color.
  • Renko chart -Renko charts focus on price movement rather than time, using bricks to represent fixed price moves. A new brick is added only when the price moves a specified amount.Types of candles
  • Hollow candle chart -Hollow candles are similar to traditional candles but distinguish between bullish and bearish candles with filled and hollow bodies. Hollow candles indicate a close higher than the open, while filled candles indicate a lower than the open.

Types of candles

Heikin Ashi Candles.

  • Flat Bottom – Green
    • Bottom are flat known as bullish candle.
  • Flat Top -Red
    • Top is flat known as bearish candle
  • Both side wick -Doji

Candle stick patterns

Candle stick pattern – I

Three White soldiers

  • The white soldiers.
  • Reversal from downtrend to an uptrend becauseof teh strong buying pressure.
  • One should watch if the volume is supporting the formation of the three white soldiers.

Three Black crows

  • Mutiple candle stick chart pattern that is used to predict reversal to the downtrend.
  • Formed when the bearish forces come into the action and make the prices fall for three consecutive days.

Candle stick pattern -II

Bullish candle

  • Bullish candles  closes above pervious candle close.
  • The length of the bullish candle enqults the previous red candle.
  • Bullish candle opens at or lower than the previous candles close.

Bearish candle

  • Bearish candle opens at or above the previous candle’s close.
  • The length of the bearish candles engulfs the previous green candle.
  • Bearish candle closes below the previous candles open.

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