The bullish and bearish Candlestick Patterns are beneficial nowadays. If you do not follow the patterns, you can not succeed in the stock market earlier. Every trader must know the chart patterns because the chart patterns are the backbone of every trader.
Friends, today we will talk about the very used Candlestick Patterns. These candlestick patterns are trendy and perform continuously in this market. And traders always enter and exit on these patterns.
As these are fundamental patterns, we can buy them very quickly. So friends, let’s see their role in how this pattern forms, how it works, and when it is most beneficial.
Bullish Engulfing Pattern In Candlestick Patterns
Friends, this is a frequent and easily visible pattern performed often in the market. On which we can easily take trades. Before trading a bullish engulfing pattern, we also have to see the trend of the market and how the market is moving.
We cannot trade on this pattern if the market is a side wedge. Because we need a continuously falling demand, if there is no declining market, this pattern does not work that much because any designs need a trendy call.
So friends, now let’s talk about how it performs. Friends, here the market is continuously falling in a trend. And in the end, a red candle forms very immediately. After that, a candle opens downwards with a slight difference; it puts a little low. And after applying the low.
That candle closes above that red candle by covering the previous red candle completely inside and engulfing itself. Let’s talk about how we have to take entry on this, friends; first of all, we have to see how big the green candle is to take admission.
If the green candle is too big, we must ignore that trade. If the green candle is not too big, we need another candle immediately after it, which should not be too big, and the candle after that, the next candle brake the high of that candle, then we have to take the trade.
And we set the stop loss below bullish engulfing, and our target should be more than 2x after the entry point. This is the rule of candlestick patterns.
Bullish Morning Star In Candlestick Patterns
Friends, like there is light after dark, in the same way, there is a light in the market, done by a bullish Morning Star Pattern. This pattern is formed after a continuous decline in the market. This pattern is not helpful if the market is not in a downtrend or on the side.
This thing keeps in your mind. There is also light after dark in the candlestick pattern, and that light is done by the morning star, which means that the market is continuously falling. After that, a way is formed, which is named the morning star.
And its job is to reverse the market, which also helps bring light into the dark; now, we will discuss the condition to change the market.
- We need a continuous downtrend.
- No side was market needed.
- This candlestick pattern should be formed at the bottom.
- We need a little gap in the candles that make the morning star.
- We have to take the entry at the high of the candle that closes above the morning star.
- We must place our stop loss below the morning star with some buffering.
- We have to take our target twice our stop loss.
- The one thing to keep in mind is either target or stop loss.
- We don’t exit the trade before the stop loss.
- It’s never too early to book profit.
Three Green Shoulders
After a continuous decline in the market, a pattern is named three Green shoulders. This pattern is solid. After the formation of this pattern, why does the market go 100% upwards? Because the buyer is pulling their full force in this pattern.
This bullish chart pattern is formed after a downtrend, and after it starts a downtrend, it pushes the market toward the upside. There is a lot of power in this pattern. Because of this, buyers take the market upside by putting all our emphasis outside.
I will tell you how we have to take entry on it now. First of all, we have to wait for the closure of the third shoulder.
As soon as the bullish third shoulder closes, we must enter the next candle. And our stop loss will be below three shoulders with a little buffering. And our target will be two times the difference between entry and stop loss.
Tweezer Bottoms
Friends, this is a perfect and consistent pattern, and we will see this pattern a lot in the market; once we do a little hard work on it, we will be able to trade on it quickly. This bullish pattern is formed almost on the support and rarely on the pullback.
The work of this pattern is similar to another way. We can easily recognize this pattern. This pattern means that two consecutive candles that have the same low. And their closing is also almost the same. They call it a tweezer bottom.
Now it comes to how to do entry and exit on these. First of all, we need to know what patterns are formed. Now we know this is the bullish tweezer bottom. So we have to take entry accordingly. To take access, we always have to wait for a candle that closes above the bulllish tweezer bottom, and at the high of that candle, we have to enter the trade.
Now it comes to our stop loss and target; friends, our stop loss will be with little buffering below the bottom of tweezer bottoms. And our target will be twice as much as the difference between the stop-loss and entry.
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