Candlestick patterns Part-II

By | March 14, 2015

In Continuation of Previous article

Harami


The Harami pattern is a real small body that is contained within what the Japanese call an “unusually long black body or white real body.” “Harami” is an old Japanese word for pregnant. The Japanese nickname for the long candle is the “mother” candle and the small candle is the “baby” or “fetus.” The second candle of the Harami can be white or black. The Japanese will say that with a Harami the market is “losing its breath.” The sellers may be in control of this stock.

 

 

 

Harami

Piercing

The piercing pattern is composed of two candles in a falling market where sellers are in control. The first candle is a black real body day and the second is a white real body day. This white candle opens lower, ideally under the lower of the prior black day. Then prices rebound to push well into the black candle’s real body which can set-up a powerful reversal.

 

 

 

 

 

Piercing

 

Evening Star

This pattern is a major top reversal pattern formed by three candlesticks. The first is a tall white real body, the second is a small real body (white or black) which gaps higher to form a star, and the third is a black candlestick which closes well into the first session’s white real body.

 

 

 

 

 

 

 

evening star

7 thoughts on “Candlestick patterns Part-II

  1. Bramesh Post author

    Levels are mentioned in Daily and Weekly Analysis.

    Please use them to trade.

    Rgds,
    Bramesh

  2. Bramesh Post author

    Will be covering few more in next few articles.

    Rgds,
    Bramesh

  3. Deepesh

    Brameshji, in the previous part you had mentioned a total of 7 patterns ,but have explained only 6. Is that it or did you miss one? just a clarification.

  4. abhinav

    Sir, Nifty has formed a Bearish engulfing pattern. So on what stoploss should we short nifty

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