SINGLE CANDLESTICK PATTERNS PART 1
People think that if a person is using the candlestick charting style, he/she might be a pro at trading and he/she is one of the most profitable traders in the world. However it is not like that. There are people who use line charts and are extremely good at trading and there are people who use candlestick charts suck at trading ( I am not talking about myself😂).
Most of the fake gurus on Internet use candlesticks because it looks a bit complex and people don’t understand candlesticks so they are intimidated by it and think that the guys knows a lot about trading but believe me knowing about candlesticks is not enough in trading there are many more things required to learn about it. There are many more things required to do to earn trading like following me medium and instagram.
In this post we are going to talk about single candlestick patterns. By single I don’t mean relationship status of that candle (which is quite similar to my relationship status), what I actually mean is that these patterns consists of just one single candle. So let us begin with the explanation of those patterns. But before that you need to make sure that you smash the ‘Clap button’ ( the like button of this platform). So without wasting our time let us get straight to the topic-
SINGLE CANDLESTICK PATTERNS
1. BEARISH MARUBUZO-
As the name suggest Bearish marubuzo is a bearish candle. This type of candle has no wicks and the highest price at which the stock was traded on that particular day is the opening price and the lowest price at which the stock has traded is the closing price. The psychology of this candle is that the selling pressure was so high that the highest price of that day was exactly when the stock opened and continued selling for the whole day such that the lowest price of that day was the closing price of that day. This is the definition of this candle according to the book but in the real world usually everything is not as perfect as everything in the book by this I mean that this candlestick pattern will not be as similar the textbook definition instead it can have small wicks.
The above picture is an example of textbook bearish marubuzo. However in the market it can have small wicks like this-
You can see that in the market usually a bearish marubuzo looks like this.
2. BULLISH MARUBUZO-
The structure of this candle is quiet similar to the bearish marubuzo just the only difference in this candle is that the open of this candle is the low of the candle and the closing price of this candle is the highest price of that day. The psychology of this candle is that the buying pressure was so high that the moment the market opened people buyers kept on buying and didn’t let the price fell down below the opening price and the closing price of that day is the highest price of that day. I will give you an image of this candle but remember that in the market the candle will not always be like the textbook definition, it will have small wicks.
This is how a bullish marubuzo looks. Don’t look at the color and say that Punit you told us that the color of a bullish candle is either white or green as I also said that the color can be changed if the person wants. You can see that this candle doesn’t have any wicks. But as I have told you that in the market nothing is perfect so it can have short wicks.
3. SPINNING TOPS-
The following candles are the spinning tops. The candles show indecision in the market. Regardless of the color, these candles show us that neither the bulls ( buyers) are in control nor the bears (sellers). The psychology of this candle is that when the market opened the bulls tried to push the stock up but soon sellers came in control and pushed the stock lower than is opening price but again bulls came in control and they pushed the stock higher. It can also happen the moment market opened the seller pushed the stock low but soon the buyer gained control and increased the price of the stock high above the opening price and then again the sellers gained power and at the end the price closed near the opening price. This shows indecision among the people. These candles alone are not that significant but the place where they appear must be analyzed carefully. I will explain that in another blog.
That is it for this blog. I hope you liked it. Make sure to share this post with your friends and family. If you haven’t smashed the clap, do it what are you waiting for. Stay updated with my blogs and follow me on instagram to learn more about stock market. The link to my instagram account is the following- https://www.instagram.com/ardently_earning/?utm_medium=copy_link.
Thank you for reading this blog.
-Punit Sarda
