Windows
by PRASHANT SHAH -
Windows Windows is a very interesting concept on candlestick charts. Basically, Windows means gap between two candles. For example, the low price of the candle is higher than the high price of the previous candle. So, you will see the gap between the two candles. It is known as a ‘Gap’ as per the western ... Read more
Dark Cloud Cover Pattern
by PRASHANT SHAH -
Dark Cloud Cover Pattern Category: Reversal Type: Weak Dark cloud cover is a bearish reversal pattern that appears in the uptrend. Let’s assume that a strong bullish candle appears in the uptrend. The trend is bullish, the candle pattern is strong hence the scenario is bullish. Imagine that price gaps up in the next session. ... Read more
Piercing Pattern
by PRASHANT SHAH -
Piercing Pattern Category: Reversal Type: Weak Opposite of Dark cloud cover patter is a Piercing candlestick pattern. It is a bullish reversal candlestick pattern. Let’s assume that a strong bearish candle appears in the downtrend. The trend is bearish, the candle pattern is strong hence the scenario is bearish. Imagine that price gaps down in ... 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
