TRAVEL KERALA

  Doji A Doji represents indecision in the markets as both buying and selling pressure are in equilibrium. Here’s how to recognize it: The candle’s open and close are around the middle of the range The upper and lower shadows are short and about the same length Although Doji is an indecision candlestick pattern, there are variations with different significance. They are: Dragonfly Doji Gravestone Doji I’ll explain… 1. Dragonfly Doji Unlike a regular Doji which open and close near the middle of the range, the Dragonfly Doji open and close near the highs of the range with long lower shadow. This tells you there is a rejection of lower prices as buying pressure stepped in and pushed the market higher towards the opening price. 2. Gravestone Doji Unlike a regular Doji which open and close near the middle of the range, the Gravestone Doji closes open and close near the lows of the range with long upper shadow. This tells you there is a rejection of higher prices as selling pressure step...

  Evening Star An Evening Star is a (3-candle) bearish reversal candlestick pattern that forms after an advanced in price. Here’s how to recognize it: The first candle has a bullish close The second candle has a small range The third candle closes aggressively lower (more than 50% of the first candle) And this is what an Evening Star means… On the first candle, it shows the buyers are in control as the price closes higher On the second candle, there is indecision in the markets as both the selling and buying pressure are in equilibrium (that’s why the range of the candle is small) On the third candle, the sellers won the battle and the price closes lower In short, an Evening Star tells you the buyers are exhausted and the sellers are momentarily in control. Moving on… How to find high probability bearish reversal setups Awesome! You’ve just learned the different bearish reversal candlestick patterns. Now, let’s take it a step further and learn how to identify high probability tradi...

  Piercing Pattern A Piercing Pattern is a (2-candle) reversal candlestick pattern that forms after a decline in price. Unlike the Bullish Engulfing Pattern which closes above the previous open, the Piercing Pattern closes within the body of the previous candle. Thus in terms of strength, the Piercing Pattern isn’t as strong as the Bullish Engulfing pattern. Here’s how to recognize it: The first candle has a bearish close The body of the second candle closes beyond the halfway mark of the first candle The second candle closes bullish And this is what a Piercing Pattern means… On the first candle, the sellers are in control as they closed lower for the period On the second candle, buying pressure stepped in and it closed bullishly (more than 50% of the previous body) — which tells you there are buying pressure around Next… Tweezer Bottom When I mean Tweezer, I don’t mean the tool you use to pick your nose hair (although it sure looks like it). Instead… A Tweezer Bottom is a (2-candl...