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Candle Stick

The document outlines various candlestick patterns used in trading, categorizing them into bullish and bearish patterns, as well as classical doji variations. Each pattern includes specific rules for identification, entry points, stop-loss strategies, and target percentages based on market movements. Key patterns discussed include Tweezer Bottom, Tweezer Top, Bullish and Bearish Engulfing, Marubozu, and various Doji types, with detailed criteria for their application in trading strategies.

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Dinesh Pal
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0% found this document useful (0 votes)
40 views15 pages

Candle Stick

The document outlines various candlestick patterns used in trading, categorizing them into bullish and bearish patterns, as well as classical doji variations. Each pattern includes specific rules for identification, entry points, stop-loss strategies, and target percentages based on market movements. Key patterns discussed include Tweezer Bottom, Tweezer Top, Bullish and Bearish Engulfing, Marubozu, and various Doji types, with detailed criteria for their application in trading strategies.

Uploaded by

Dinesh Pal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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All Patterns

➢ Classical Doji
➢ Long-legged Doji

➢ Bullish Pattern
a. Tweezer Bottom
b. Bullish Marubozu
c. Bullish Engulfing
d. Inverted Hammer
e. Dragonfly Doji
f. Hammer

➢ Bearish Pattern
a. Tweezer Top
b. Hanging Man
c. Bearish Marubozu
d. Bearish Engulfing
e. Gravestone Doji
f. Shooting Star
Tweezer Bottom

• Trend should be down


• In tweezer bottom there is same shape two candles but first one
will be red candle
• Tweezer is very accurate when it is near to a support level

Rules for a Tweezer Bottom


• In Banknifty 5 min chart 9-11 candle and 150points
downfall is needed
• Nifty = 9-11 candle and 50 points
• Stock= 9-11 candle 1% move
• In 15 min chart downfall should be 7-9 candles
• In daily chart downfall should be 4-5 days

Entery
• Enter on Tweezer bottoms High

Stoploss(SL)
• SL should be 10-15 points below the low of tweezer bottom-

Target
• 1st – 33% of the down trend
• 2nd –77%
• 3rd –102%
Tweezer Top

• Trend should be up
• There are two same shape candles but first one wil be green
and second one red

Rules for Tweezer Top


• In Banknifty 5min chart 9-11 candle and 150points up is
needed
• Nifty = 9-11 candle and 50 points
• Stock= 9-11 candle 1% move
• In 15 min chart up should be 7-9 candles
• In daily chart up should be 4-5 days

Entery
• Enter on Tweezer Tops Low

Stoploss(SL)
• SL should be 10-15 points up the high of tweezer bottom

Target
• 1st – 50% of the up trend
• 2nd –77%
• 3rd –102%
Bearish Marubazu
• Trend should be up
• Risk : Reward = 1:3/4

Rules for Bearish Marubazu


• In Banknifty 5min chart 9-11 candle and 180-200points up is
needed
• Nifty = 8-10 candle and 120/150 points up
• Stock= 8-10 candle 1% move
• In 15 min chart up should be 6-8 candles
• In daily chart up should be 3-4 days

Entery
• Enter on Marubazu Low

Stoploss(SL)
• SL should be Marubazu candles high

Target
• 1st – 50% of the up trend
• 2nd –88%
• 3rd –102%
Classical Doji

• In classical doji candle colour does not matter


• It needs some move in market

Rules for a Clasical Doji


• It needs up/down move in market ,that move
should be at-least Banknifty-199 Points
Nifty -99 Points
Stock -2%

Entery
• Enter when the next candle of doji breaks the high/low of the
previous candle

Stoploss (SL)
• SL should be 20 points up/down of dojis low/high

Target
• 1st- 55% of the trend
• 2nd-88%
• 3rd-122%
Bullish Engulfing
• We need a downtrend
• Engulfing should be green colour
• Engulfing candle should be the lowest candle of the
down trend

Rules for a Bullish Engulfing


• It needs down move in market ,that move should be
at-least Banknifty-7candles and at-least 150points
Nifty -77 Points
Stock – (8-9)candles and 1.5%points

Entery
• Enter when the high of the second last candle of the downtrend
• Wait for next three candle for entery

Stoploss (SL)
• SL should be the 10points low of lowest point the downtrend

Target
• 1st- 50% of the downtrend
• 2nd-77%
• 3rd-100%
Bearish Marubozu
• Trend should be downtrend

Rules for Bearish Marubozu


• In Bank-nifty 5min chart 7-9 candle
and 180-200points up is needed
• Nifty = 8-10 candle and 120/150 points up
• Stock= 8-10 candle 1% move
• In 15 min chart up should be 4-6 candles
• In daily chart up should be 3-4 days

Entery
• Enter on Marubozu High

Stoploss(SL)
• SL should be Marubozu candles Low

Target
• 1st – (80-100) points
• 2nd – 155 points
• 3rd – 222 points
Bearish Engulfing
• We need a uptrend
• Engulfing should be red colour
• Engulfing candle should be the highest candle of the up
trend

Rules for Bearish Engulfing


• It needs up move in market , that move should be at-
least Bank-nifty- 8candles and at-least 200 points
Nifty - 100 Points
Stock - 9 candles and 1.5%points

Entery
• Enter when the low of the second last candle of the uptrend
• Wait for next three candle for entery

Stoploss (SL)
• SL should be the 10points high of the Engulfing candle

Target
• 1st- 40% of the uptrend
• 2nd-77%
• 3rd-100%
Hanging Man
• We need a uptrend
• Colour is not important

Rules for Hanging Man


• It needs up move in market , that move should be
at-least Bank-nifty- (11-13)candles and at-least 170-200 points
in 5min
And (7-9)candles in 15min
Daily (5-6) days
Nifty – 70-90 Points
Stock - 9 candles and 1.5%points

Entery
• Enter when the low of the Hanging man candle
• Wait for next three candle for entery

Stoploss (SL)
• SL should be the 20points High of the Hanging man

Target
• 1st- 55% of the uptrend
• 2nd-100%
Hammer
We can use Hammer pattern in 3conditions
i. Bullish trend + Correction

Rules for Hammer


• In up trend Bnaknifty should correction of
120 points + 8 candles
• Nifty - 60 points + 8 candle
• Stocks – 1% + 8 candle

Entery
• Entery on Hammer candles High

Stoploss (SL)
• SL should be 10-20 below the Hammer Low

Target
• 1st – 0.88% of the correction
• 2nd – 1.33%

ii. Up trend + Gap down +1st candle Hammer


Gap down = (200-250) points

iii. Down trend + Gap down + 1st candle Hammer


Inverted Hammer
• Colour is not important

Rules for Inverted Hammer


• 5min- 7candle
• 15 min - 7candle
• D – 4candle
• In bank nifty 150 points down move + 7candle need
• Nifty 55 points + 7 candle
• Stocks 1%down move + 7 candle

Entery
• Enter on the High of the Inverted Hammer

Stoploss (SL)
• SL should be the 15-20points low of the Inverted Hammer

Target
• 1st- 77%
• 2nd – 1%
Gravestone Doji
• For Garvestone Doji we need downtrend in daily
timeframe
• After the downtrend we need a pull back

Rules for Gravestone Doji


In Banknifty 5/15min chart – 6-7 candle pull-back + 150 points up
Nifty – Miinimum 6-7candle + 60-70 points pull-back

Entery
• Enter on Low of the Gravestone Doji

Stoploss (SL)
• SL should be the 15-20points up of High of the Graevstone
doji

Target
• 1st- 77%
• 2nd – 1.22%
Long-legged Doji
• Long legged doji can be in up trend and down trend

Rules for Long-legged Doji


• In up trend Bnaknifty should move of 199
points + 7-9 candles
• 15min 5-7candle
• Nifty – 70-90 points + 7-9 candle
• Stocks – 1% + 7-9 candle

Entery
• Enter on the 2nd next candle when it breaks doji next candle
high/low

Stoploss (SL)
• SL should be the 15-20points high/low of the doji candle

Target
• 1st- 77%
• 2nd – 1%
Dragonfly Doji
• It’s a bullish candle so we need a up trend and
then a correction

Rules for Dragonfly Doji


• Banknifty – 120points correction and +
6--8 candle correction
• Nifty – 50points + 6-8 points correction
• Stock – 1%move + 6-8 points correction

Entery
• Enter on high of the Dragonfly Doji

Stoploss (SL)
• SL should be the 15-20points low of the doji candle

Target
• 1st- 77%
• 2nd – 1.22%
Shooting Star
• It’s bearish candle so we need a down trend

Rules for Shooting Star


• Banknifty – 120points correction and + 6--
8 candle correction
• Nifty – 50points + 6-8 points correction
• Stock – 1%move + 6-8 points correction

Entery
• Enter when it breaks the low of the shooting star

Stoploss (SL)
• SL should be the 15-20points high of the candle

Target
• 1st- 77%
• 2nd – 1%S

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