Narrow Range Candles
by PRASHANT SHAH -
A candle’s range is the difference between its high and low price. A higher range indicates a strong trend or increased volatility during the session. Low range shows a lackluster price trend and a lack of momentum. Generally, this does not relate to candlestick patterns, but rather the range of candles is analyzed by participants ... Read more
Wide Range Candles
by PRASHANT SHAH -
W4 W4 stands for Wide Range 4. A W4 pattern is qualified if the candle’s range is the highest in the last 4 sessions. The difference between the high and low of the current session is the highest in the last four sessions. It shows that the trend is strong and momentum is in favor. ... Read more
Back-testing of candlestick patterns
by PRASHANT SHAH -
We have discussed various candlestick patterns. Many such patterns exist, and new patterns are continually being developed. People use it in different ways. There are many traders who perform subjective analysis, who observe patterns and make decisions based on their observations. Some traders use it in conjunction with other tools and indicators. Some traders create ... Read more
Bullish Engulfing Pattern
by PRASHANT SHAH -
Bullish Engulfing Pattern Category: Reversal Type: Strong Since you know about the Piercing pattern, you will easily understand the Bullish Engulfing Pattern. Imagine that there is a downtrend and a bearish body candle appears. Price gaps down in the next session. Price trend is bearish and there is a bearish continuation price action. After opening ... Read more
Bearish Engulfing Pattern
by PRASHANT SHAH -
Bearish Engulfing Pattern Category: Reversal Type: Strong The concept of Bearish Engulfing pattern is the opposite of Bullish Engulfing pattern. Imagine that there is an uptrend and a bullish body candle appears. Price gaps up in the next session. Price trend is bullish and there is a continuation price action. After opening higher, price falls ... Read more
Backtesting of Engulfing pattern
by PRASHANT SHAH -
Back-testing of Engulfing candlestick pattern on daily charts of Indian markets Engulfing is a very popular candlestick pattern. Below is an image explaining it. For an engulfing pattern, it is important that body of the second candle engulfs body of previous candle. Shadows need not be engulfed. In this post, we wanted to back-test the ... Read more
