This is a three day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day.
The opposite of this pattern is the "evening star"... this indicates bearishness and is reliable when formed after a strong uptrend.
thank you KPL -ji for your kind reply and for this candlestick lesson too.
ReplyDeletethat crossover has happened last time in July 2012 if i am not wrong. OK..anyway i ignore that one after seeing your reply.
But really scary about your market comments about 5600 level break or make. strucked with calls. something fishy?? OOps. still it's strucking with 31st july candle :( and i know weekly is firmly down..but bght based on the trendline support.
tks nd regards
Half the signals fail... whatever indicator you use.
DeleteJust remember this.
Hi KPL,
ReplyDeleteGood analysis, you are reminding of me reading the Steve Nison's Charting book, keep it up
There are two short and sweet ebooks on the site
Deletehttp://www.vfmdirect.com/info/candlestick_primer.pdf
and
http://www.vfmdirect.com/info/candlestick_formations.pdf
Dear Sir,
ReplyDeleteThis link is not available.
http://www.vfmdirect.com/info/candlestick_formations.pdf
Pl. make it available.
Regards,
Bipin
Uploaded the file... it is accessible now.
DeleteKPLji in the picture no 3 above captioned Bullish Morning Star the candle also appears as Inverted Hammer and even formation of Inverted Hammer Pattern after a considerable down side is Bullish with the confirmation of the same coming next day. Am I right?
ReplyDeleteYes... this is rare and some people may not even consider this as a technically correct morning star formation. I posted this deliberately as it met the condition for a gap down opening.
DeleteActually without remembering the pattern all one needs to understand is what is the market trying to tell us. Candlesticks do this very nicely and give ample hints.
Respected Sir,
ReplyDeleteThere is a commentary which tells about the story of lower brokerage plan and silly trade. http://www.youtube.com/watch?v=jxtK58LGPA8 if somebody use this trading method which is in this video and scapel trading.he must have a lower brokerage.whatever the trading method is used so far it shows higher accuracy with lower time frame.ie. they tried to predict to the next candle and it is enhance using the different time cycle. this is my personal view.
Thanks and regards.
He is promoting zerodha... secondly he has not mentioned anything about stoplosses... For this strategy to work, SL should be atleast 25% of profit target.
DeleteIf profit is Re 1 and SL is 50 paise, the method will not work.
possible there is promotional factor but he took a good name behind as referance. In this market small investment are vastly trapped due to faulty explanation which is spoiling the game.this type of guys trying to earn from refering ppl to broking house rather than trading ethically.
DeleteThis comment has been removed by the author.
ReplyDeleteDon't know...not aware of this
Delete