Hello Everyone,
Before Starting we will Know about the Derivatives Of Morning star and Evening star
So Lets Start
Morning Star Derivatives (Remember it is on the Bottom side)
1. Abandoned Baby
2. Doji Star
3. Star and Gap
4. Hammer
5. Reverse Hammer
6. Doji Hammer
We will talk more deeply in the Next Part
Also, I suggest 50 and 200-day MA take into use on the charts
(As a survey says that all the charts work better on different ma's but 50 and 200 work best on almost Every stock)
1. Piercing Patterns
A Piercing pattern is known as a Major signal and is very potent and can be used for predicting a bullish reversal. The formation occurs rarely. It is a two - candlestick pattern that has the potential for a short-term reversal after a downward trend to an uptrend. The pattern includes the first candle opening is Red in color and the Green candle opens below the Red candle, One can buy it after getting confirmation at the breaking of the red candle as shown in the picture. It also includes a rule to get closed above the half of the red candle that covers at least half of the red candlestick.
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If it doesn't get closed above Half of the red candle then it would be known as
1. In Neck
2. On Neck
3. Thrusting Line
2. Dark Cloud
A Dark Cloud pattern is known as a Major signal and is very potent and can be used for predicting a bearish reversal. The formation occurs rarely. It is a two - candlestick pattern that has the potential for a short-term reversal after an uptrend trend to a downtrend. The pattern includes the first candle opening is Green in color and the Red candle opens above the Green candle, One can sell it after getting confirmation at the breaking of the green candle as shown in the picture. It also includes a rule to get closed below the half of the green candle that covers at least half of the red candlestick.
3. Harami - Bullish
A Harami - Bullish pattern is known as a Major signal and is very potent and can be used for predicting a bullish reversal. The formation easily. It is a two - candlestick pattern that has the potential for a short-term reversal after a downtrend trend to an uptrend. The pattern includes the first candle opening is red in color and the green candle opening between the red candle, One can buy it after getting confirmation at the breaking of the red candle.
4. Harami - Bearish
A Harami - Berishpattern is known as a Major signal and is very potent and can be used for predicting a bearish reversal. The formation easily. It is a two - candlestick pattern that has the potential for a short-term reversal after an uptrend trend to a downtrend. The pattern includes the first candle opening is green in color and the red candle opening between the green candle, One can buy it after getting confirmation at the breaking of the green candle.
5. Shooting Star
It is a type of candlestick pattern which forms in an uptrend. A shooting star is a Bearish Candlestick pattern, not a Bullish Pattern having a long shadow on the upper side and a small shadow which is next to visibility can be seen at all. In technical analysis, The Shooting Star looks exactly same like an Inverted hammer.
(Remember this is not based on the color)
When the goal is completed we will publish Part :- 3
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