Candlestick charts

[vishalalluri]

CHART OF IFCI
INVERTED HAMMER REVERSAL

 

[King_Junior]

Hi Vishalalluri,

Thanks for your valuable postings.

Could you tell me how one could make use of Standard Deviations (obtained based on a sample) with the price movements of a particular period captured using candlestick chart?

 

[vishalalluri]

Hi Vishalalluri,

Thanks for your valuable postings.

Could you tell me how one could make use of Standard Deviations (obtained based on a sample) with the price movements of a particular period captured using candlestick chart?

hi king

sorry but im a novice so not actually clear in what u trying to ask

 

[vishalalluri]

hi everyone

i would like to give somethng about bearish or bullish engulfing patterns which shows some trend reversals

bullish /bearish englufing can be worked on with stochastic indicator

if we have a bullish englufing + stochastic oversold region --- bullish reversal
if we have a bearish engulfing + stochastic overbought region === bearish reversal
Bullish englufing is nothin but when we have a downtrend and when after a red candle we have a long green candle which absorbs the whole red candle in it we call it as bullish engulfing im posting an image of bullish and bearish engulfing from stock charts

The Bullish Engulfing pattern consists of two bodies. The first body is the same color as the current trend, the second is the opposite color. The signal day opens lower than the previous days close, then it trades higher so by the end of the day, it will close above cthe previous days open. This new white candle now engulfs the previous days candle

lets see a small correction in a script madras cements showing bearish engulfing
watch how the red candle engulfs the green candle

a bigger trend reversal would have happened if the stochastic at tht time would have been at extremely overbought regions indicating a down trend

in the chart we could see the stochastic was near to 70 but there was a correction after the bearsih engulfing occured

 

[vishalalluri]

perfect indication of bearish engulfing after an uptrend with stochatics also at overrrbought region

 

[bunny]

Hi Vishalalluri,

Thanks for your valuable postings.

Could you tell me how one could make use of Standard Deviations (obtained based on a sample) with the price movements of a particular period captured using candlestick chart?

Standard deviations is a statistical concept. In technical analysis, it is used in Boolinger Bands. Commonly, the 20 SMA is staggered by 2xSD. Google for more on Bollinger bands.

 

[vishalalluri]

perfect indication of bearish engulfing after an uptrend with stochatics also at overrrbought region

 

[bunny]

IF ANYBODY FEELS IM WRONG ANYWHERE PLEASE CORRECT ME

Hi Vishal,
You are doing a good job. Since you have sought "corrections" I feel like telling this to you.

What you are posting here is already available in redundant quantities on the web. One just needs to Google for it. My point is that why are you wasting your time writing posts and pasting charts when the same is available readymade on other webpages. I don't want to offend you or want to say that what your are doing in not worthy. It is surely worthy, but I am not sure if it needs repetition.

Also, you are not focusing on failures. It is important to let the audience know that candlesticks can fail. Otherwise, they may develop a misconception that candlestocks are foolproof. This can be hazardous.

I do understand that one has the desire to teach others what they don't know, but in that case, you can paste links to the webpages.

Seeing your enthusiasm, I am sure that you can develop analysis skills of higher levels rather than these concepts which are very commonly available. So I would say you invest your time there.

And one more question: After so many posts and charts, can you analyze a chart with the bare minimum - only the OHLC prices and volume? without any indicators, not even moving averages?

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If you don't like this post, let me know and I will delete it. Please take my words in a positive sense.

 

[vishalalluri]

Hi Vishal,

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hi bunny thnks for ur view i totally take what u saying in a postive sense
through my thread i just am trying to put charts rather than explain, for anyobody whos new to the world of candlesticks and .u can see in my posts that everytime i try posting a chart about the thing i try to bring out
and what i learn is just to try to put it with scrips what we know in our markets

Tis is again a self learning process in a way in which i share it with people who are new .
this is just for reference for all learners so that anyone next time sees a chart and candles in it they should just catch those candles and their relevance easily

i would surely work on showing charts about when candlstick fails

I really aspire to become perfect in analysis and actually trade cos i have traded emotionally (sentimetally widout any learning )5 months back and lost

now everythin makes sense to me about the markets cos i kno the movements of market still more is ot be learnt

hoping to start soon

thnks for ur suggestion


QUOTE]

 

[King_Junior]

Standard deviations is a statistical concept. In technical analysis, it is used in Boolinger Bands. Commonly, the 20 SMA is staggered by 2xSD. Google for more on Bollinger bands.

Thanks Bunny.

Could you give me links to some online reading material on
1. Moving Average
2. Bollinger Bands

for constructing trading strategies and to indentify exit and entry points