Candlesticks patterns are the simplest form of trading strategy.
And you only need four patterns to master it
A candlestick pattern masterclass🧵
#BankNiftyOptions #StockMarketindia #OptionsTrading
And you only need four patterns to master it
A candlestick pattern masterclass🧵
#BankNiftyOptions #StockMarketindia #OptionsTrading
In this thread, we will cover:
A.Single candlesticks pattern
1. Maribozu
2. Pinbar
B.Multiple candlesticks Pattern
1. Engulfing candlestick pattern
2. Morning Evening star
C. Combining candlesticks
D. Where to use the candlesticks
E. Combining candles with volume
A.Single candlesticks pattern
1. Maribozu
2. Pinbar
B.Multiple candlesticks Pattern
1. Engulfing candlestick pattern
2. Morning Evening star
C. Combining candlesticks
D. Where to use the candlesticks
E. Combining candles with volume
1/n Single candlesticks pattern
There are only two single candlestick patterns you need to know, to master single candlesticks pattern
Maribozu
Pinbar
There are only two single candlestick patterns you need to know, to master single candlesticks pattern
Maribozu
Pinbar
2/n Maribozu Pattern
It shows strength as close/close and high/low are at the same point.
It mostly used to identify breakout at support and resistance
It shows strength as close/close and high/low are at the same point.
It mostly used to identify breakout at support and resistance
3/n Example of Maribozu pattern
In the below chart you can see a maribozu candle after false breakout of resistance
Powerful reversal occurred after that
In the below chart you can see a maribozu candle after false breakout of resistance
Powerful reversal occurred after that
4/n PinBar pattern
Pinbar pattern is a very strong reversal pattern .
Bull/bears takes the market up/down but market at the end of the day completely reverses.
Here is how it looks
Pinbar pattern is a very strong reversal pattern .
Bull/bears takes the market up/down but market at the end of the day completely reverses.
Here is how it looks
5/n Example of Pinbar
As said, it is a very strong reversal pattern if it forms at support and resistance.
Pro tip ; use higher timeframe for best results
As said, it is a very strong reversal pattern if it forms at support and resistance.
Pro tip ; use higher timeframe for best results
6/n Multiple candlesticks Pattern
There are only two pattern you need to be aware of if you want to master candlesticks trading
1. Engulfing candlesticks pattern
2. Morning/Evening star
Lets discuss one by one
There are only two pattern you need to be aware of if you want to master candlesticks trading
1. Engulfing candlesticks pattern
2. Morning/Evening star
Lets discuss one by one
7/n Engulfing candlesticks pattern
This is also a powerful reversal pattern
If it forms at support or resistance you can expect a strong reversal
This is also a powerful reversal pattern
If it forms at support or resistance you can expect a strong reversal
8/n Morning Evening star
The most powerful reversal pattern on the candlestick arena
I have rarely seen it fail
here is an example
The most powerful reversal pattern on the candlestick arena
I have rarely seen it fail
here is an example
9/n Combining candlesticks pattern
Why did I say you need to master only two multiple candlesticks pattern,
Bcoz all are variations of the same, see below how you can combine these
Engulfing candle = pin bar candle
Why did I say you need to master only two multiple candlesticks pattern,
Bcoz all are variations of the same, see below how you can combine these
Engulfing candle = pin bar candle
10/n Location to use candle sticks
Candlesticks pattern should always be used near to the support and resistance.
Using it everywhere will not yield good results.
See how Maribozu candle would have helped you predict a breakout in Nifty
Candlesticks pattern should always be used near to the support and resistance.
Using it everywhere will not yield good results.
See how Maribozu candle would have helped you predict a breakout in Nifty
11/n Combining candles with volume
Candle with volume yield the best results
It is used to find :
reversal as an exhaustion candle
See how the market reversed after it got exhausted with big candle
Candle with volume yield the best results
It is used to find :
reversal as an exhaustion candle
See how the market reversed after it got exhausted with big candle
12/n Some important pointers
- Candlestick pattern helps you time the market
- Low/high of the candle can be used as a stoploss
- Higher TF yield the best results
- Use only the above patterns and use logic to combine candles as stated above
Happy trading
- Candlestick pattern helps you time the market
- Low/high of the candle can be used as a stoploss
- Higher TF yield the best results
- Use only the above patterns and use logic to combine candles as stated above
Happy trading
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