Let’s learn about Multiple Candlestick patterns 📈📉
We'll deep-dive into:
🔸 Types of Patterns;
🔸 Market views;
🔸 Trading indicators
and much more
A thread ✍️🧵 #TechnicalTuesdays
#LearnwithICICIDirect
We'll deep-dive into:
🔸 Types of Patterns;
🔸 Market views;
🔸 Trading indicators
and much more
A thread ✍️🧵 #TechnicalTuesdays
#LearnwithICICIDirect
Multiple Candlestick patterns is the pattern of candlesticks that evolve over 2 or more days
Types of patterns are:
🔶Bullish Engulfing
🔶Bearish Engulfing
🔶Piercing
🔶Dark cloud cover
🔶Bearish and Bullish Harami
🔶Morning and Evening star
Let's understand each in detail👇
Types of patterns are:
🔶Bullish Engulfing
🔶Bearish Engulfing
🔶Piercing
🔶Dark cloud cover
🔶Bearish and Bullish Harami
🔶Morning and Evening star
Let's understand each in detail👇
[A]-Bullish Engulfing
🔸Bullish reversal pattern comprised of two candlesticks of opposite colors
🔸Formed at bottom of downtrend
🔸Indicator of buyers taking over sellers
🔸In primary trend of downward, it indicates trend reversal & in upward it indicates continuity
Contd 👇
🔸Bullish reversal pattern comprised of two candlesticks of opposite colors
🔸Formed at bottom of downtrend
🔸Indicator of buyers taking over sellers
🔸In primary trend of downward, it indicates trend reversal & in upward it indicates continuity
Contd 👇
![[A]-Bullish Engulfing
🔸Bullish reversal pattern comprised of two candlesticks of opposite colors
🔸F...](https://pbs.twimg.com/media/FsTkNnuWwAE-99m.png)
Trading tips in Bullish Engulfing:
🔸Avoid in downward primary trend, as reversal can be for short term and primary trend might take over
🔸Trade when primary trend is upward and look for retracement in price trend
🔸Favourable when traded on the higher time frames
🔸Avoid in downward primary trend, as reversal can be for short term and primary trend might take over
🔸Trade when primary trend is upward and look for retracement in price trend
🔸Favourable when traded on the higher time frames
[B]-Bearish Engulfing
🔶Opposite to the bullish engulfing pattern
🔶Formed at the top of an uptrend
🔶Market's overall sentiment in favour of the bears
🔶Suggestive of the beginning of a bearish price move when it appears at the top of a primary uptrend.
Contd 👇
🔶Opposite to the bullish engulfing pattern
🔶Formed at the top of an uptrend
🔶Market's overall sentiment in favour of the bears
🔶Suggestive of the beginning of a bearish price move when it appears at the top of a primary uptrend.
Contd 👇
![[B]-Bearish Engulfing
🔶Opposite to the bullish engulfing pattern
🔶Formed at the top of an uptrend
🔶...](https://pbs.twimg.com/media/FsTkWXfWYAEEAat.png)
Trading tips in Bearish Engulfing:
🔸Indicates that sellers are in control, but doesn’t mean the price is about to reverse lower
🔸Avoid in upward primary trend, as reversal can be for short term and primary trend might take over
🔸Favorable when traded on the higher time frames
🔸Indicates that sellers are in control, but doesn’t mean the price is about to reverse lower
🔸Avoid in upward primary trend, as reversal can be for short term and primary trend might take over
🔸Favorable when traded on the higher time frames
[C]-Piercing
🔸1st candle is long bearish candle shows continuation of the downtrend, and the 2nd candle opens lower than the prev. close, then rallies up to close at least halfway up the last candle
🔸Bullish reversal pattern that can be seen at the end of a downtrend
Contd👇
🔸1st candle is long bearish candle shows continuation of the downtrend, and the 2nd candle opens lower than the prev. close, then rallies up to close at least halfway up the last candle
🔸Bullish reversal pattern that can be seen at the end of a downtrend
Contd👇
Trading tips in Piercing:
🔸Can take long position with a stop-loss below the low of the piercing pattern candle with profit target or trailing stop loss
🔸Can also enter trade at the opening of the next candle after piercing candle or wait for a pullback to support level
🔸Can take long position with a stop-loss below the low of the piercing pattern candle with profit target or trailing stop loss
🔸Can also enter trade at the opening of the next candle after piercing candle or wait for a pullback to support level
[D]-Dark cloud cover
🔸Opposite of Piercing pattern
🔸Green candle followed by red candle that opens with gap up and then closes at least halfway down the body of the prev. candle
🔸Lower the red candle closes into the green candle, the stronger the reversal will be
Contd👇
🔸Opposite of Piercing pattern
🔸Green candle followed by red candle that opens with gap up and then closes at least halfway down the body of the prev. candle
🔸Lower the red candle closes into the green candle, the stronger the reversal will be
Contd👇
![[D]-Dark cloud cover
🔸Opposite of Piercing pattern
🔸Green candle followed by red candle that opens...](https://pbs.twimg.com/media/FsTkzGWWYAACB0k.png)
Trading tips in Dark cloud cover:
🔸Can take trade at next days's candle after the formation of Dark Cloud Cover or wait for a pullback to a resistance level
🔸Place a stop-loss above the high of the Dark Cloud Cover candle to limit potential losses if the trade goes OTM
🔸Can take trade at next days's candle after the formation of Dark Cloud Cover or wait for a pullback to a resistance level
🔸Place a stop-loss above the high of the Dark Cloud Cover candle to limit potential losses if the trade goes OTM
[E]-Bearish and Bullish Harami
A candlestick that forms within the body of the previous candlestick is in a Harami position
🔸Bearish Harami - Formed in an uptrend to reverse the pattern
🔸Bullish Harami - Formed in a downtrend to reverse the pattern
Contd👇
A candlestick that forms within the body of the previous candlestick is in a Harami position
🔸Bearish Harami - Formed in an uptrend to reverse the pattern
🔸Bullish Harami - Formed in a downtrend to reverse the pattern
Contd👇
![[E]-Bearish and Bullish Harami
A candlestick that forms within the body of the previous candlestick...](https://pbs.twimg.com/media/FsTlJx9WYAIjoK7.jpg)
Trading tips in Bearish and Bullish Harami:
🔸Look for Bearish reversal candle in a primary upward price trend
🔸Look for Bullish reversal candle in a primary downward price trend
🔸Look for Bearish reversal candle in a primary upward price trend
🔸Look for Bullish reversal candle in a primary downward price trend
[F]-Morning and Evening star
Star is a candlestick that has a small body that lies outside of the range of the body before it
🔸Morning Star- Bullish reversal signal
🔸Evening Star- Bearish reversal signal
Refer to below images for Morning and evening star formation
Contd👇
Star is a candlestick that has a small body that lies outside of the range of the body before it
🔸Morning Star- Bullish reversal signal
🔸Evening Star- Bearish reversal signal
Refer to below images for Morning and evening star formation
Contd👇
![[F]-Morning and Evening star
Star is a candlestick that has a small body that lies outside of the r...](https://pbs.twimg.com/media/FsTlgxdWAAA_jBq.png)
![[F]-Morning and Evening star
Star is a candlestick that has a small body that lies outside of the r...](https://pbs.twimg.com/media/FsTlh2WWwAE4_FJ.png)
Trading tips in Morning and evening star:
🔸Look for morning star in primary rising trend and then appears downward retrace of that uptrend after which upward breakout occurs and joins primary rising trend and vice versa for evening star
🔸Look for morning star in primary rising trend and then appears downward retrace of that uptrend after which upward breakout occurs and joins primary rising trend and vice versa for evening star
In our endeavour to educate you, we will post:
🔸1 thread on Technical Analysis every week on Tuesdays #TechnicalTuesdays
🔸1 thread on Fundamental Analysis every week on Fridays #FundamentalFridays
🔸1 thread on Technical Analysis every week on Tuesdays #TechnicalTuesdays
🔸1 thread on Fundamental Analysis every week on Fridays #FundamentalFridays
Want us to keep doing this?
1. Follow us (@ICICI_Direct) and hit the bell icon🔔
2. Retweet this tweet -
1. Follow us (@ICICI_Direct) and hit the bell icon🔔
2. Retweet this tweet -
TL;DR
[1] What are Multiple Candlestick Patterns
[2] Types of Multiple Candlestick Patterns
[3] Bullish Engulfing
[4] Bearish Engulfing
[5] Piercing
[6] Dark Cloud Cover
[7] Bearish and Bullish Harami
[8] Morning and Evening Star
[1] What are Multiple Candlestick Patterns
[2] Types of Multiple Candlestick Patterns
[3] Bullish Engulfing
[4] Bearish Engulfing
[5] Piercing
[6] Dark Cloud Cover
[7] Bearish and Bullish Harami
[8] Morning and Evening Star
Disclaimer: bit.ly
Loading suggestions...