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Candlestick pattern in Intraday 1

Thursday, February 19, 2009 | Labels: , , | |


Here I like to Give you some important candle stick pattern for your study. This series of candle stick patter will help you to improve your technical analysis for intraday and trading. Learn and research this candle stick pattern with your favourite stock. You will getting perfect with this pattern and its knowledge implemented in market.

Hammer and Hanging Man (Candlestick Reversal Pattern)

In a Hammer, during a downtrend, there is an initial sharp sell off to new lows. However, by the end of the day, the market rallies to close at or near its high for the day.

A bullish engulfing candle occurs after a significant downtrend. Note that the engulfingcandle must encompass the real body of the previous candle, but need not surround the shadows. Below you will find an illustration of a bullish engulfing candle:

The sharp recovery suggests that the bearish sentiment may be beginning to wane and if a move
above the high of the Hammer days occurs during the next day's trading there is a stronger risk of
complete trend reversal.

In a Hanging man, during an uptrend there is a sharp sell off after the market. By the end of the
day, the market rallies to close at or near the high for the day.

This pattern definitely requires confirmation. The recovery in price over the day could mean the
bulls are still in control. However, a break to new highs on the next trading day is required to
confirm. Alternately, a decline to test the low of the Hanging Man day will suggest a trend reversal

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