History of Candlesticks
The present candlesticks which are used in many parts of the world were developed by Japanese in the 17th century. The present day candlestick has been modified when compared to the one initially developed. A good trader who uses candlestick patterns must know what exactly a candlestick is and what it indicates us.
The lines above and below the body are Upper shadow and Lower shadow respectively. By looking at the candle, say nifty chart, the analyst must be in a position to tell where the candle opened and closed. Simple rule, if the candle of nifty chart is green (or white as per the settings), the bottom of the body is opening whereas the top of the body is closing which means closing price is above the opening price which is a bullish one. As well, if the candle of nifty chart is red (or black), the top of the body is opening whereas the bottom of the body is closing which means closing price is below the opening price of the particular period representing a bearish phase.
Based on the candlesticks, future trends can be predicted. Below are some of the important candlestick patterns. All the patterns shown are reversal patterns after the end of bull/bear phase
| Bullish Patterns | Bearish Patterns |
|---|---|
| Hammer | Shooting Star |
| Morning Star | Evening Star |
| Morning Doji Star | Evening Doji Star |
| Bullish Engulfing | Bearish Engulfing |
| Hanging Man | |
| Harami |
In this chapter, we are going to learn about bullish patterns whereas in the next article, we will explain you about bearish candlesick patterns.
Select each of the bullish patterns below to read them in detail along with special trading techniques defined by our SM technicals team.
