Triple candlestick pattern is an array of three successive candles which predicts the future trend in advance. More often it predicts trend reversal after a long downtrend or uptrend.If triple candlestick pattern is confirmed with overbought or oversold conditions of an indicator (either stochastic or RSI) then the trend reversal may be confirmed & a better opportunity for swing trading may occur. Triple candlestick patterns are rare phenomenon as compared to double candlestick patterns & unless & until not confirmed with other indicator or parameters may produce whipsaws. Le ..read more

 StochRSI is derived by putting RSI values in stochastic formula instead of putting stock price data,thus making the indicator more sensitive to changes in stock price.StochRSI is developed to benefit from both momentum indicators to create more overbought & oversold conditions. Before going to study stoch-rsi let's see formulae of stochastic & RSI. Stochastic-  The formula to calculate stochastic oscillator is as below. %k={C-L14/H14-L14}*100 Where, C=Previous close L14=The lowest price traded over previous 14 days. H14=The highest price traded over previous 14 days. %K=Valu ..read more

Double candlestick patterns confirms the trend reversal & that reversal is going to sustain over a period of time. These patterns may appear everywhere in the chart which may be false signals.But if these patterns appear at overbought or oversold levels trend change may be confirmed. Tweezers bottom - This candlestick pattern comes at the end of uptrend & confirms the bearish trend reversal. This is couple of candles which are same but first candle is green & second candle is red. It may be couple of shooting star as shown above. The first candle is green having small body & ..read more

Patterns formed by two candles are called double candlestick patterns. Double candlestick patterns are useful for swing trading. If these patterns are coupled with oversold or overbought conditions of leading indicator more approximate swing trading techniques can be developed. There are many types of double candlestick patterns. Let's study some frequently occurring patterns. Bullish engulfing pattern- As the name implies, bullish candle completely engulfs the preceding bearish candle. The first candle is small & red. The second candle is green. The second candle opens gap-down tha ..read more

Bollinger band is formed by 20-day SMA(or EMA) line & two lines above & below taking 2-standard deviation of SMA (or EMA) line. Most of the times stock price remains within the bollinger band. When stock is in strong bullish trend or bearish trend stock price may sustain above or below the band for a definite time period.Most of the times stock price remains inside the band. When stock becomes saturated in a particular direction (uptrend or downtrend) price touches the upper or lower bollinger band line,indicating trend change may happen. If at this stage a distinct candle (trend-chang ..read more

Gravestone doji coupled with RSI - Gravestone doji coming at the end of uptrend reflects buyers still wanting to push the stock price upward but sellers deny the value.The selling pressure results in long tail & no or small body compared to tail. If this situation occurs at overbought region the trend change may occur. Above figure is example of that. The graph of Mindtree jan-2016 clearly depicts the theory. It shows gravestone doji at vertical line in the price chart & overbought level of RSI. Initially if you look to the left of the chart candles are small,indicating&nbs ..read more

Leading indicators produce overbought & oversold conditions.If these conditions used with trend-changer candlestick more approximate buy & sell signals may be generated. Overbought & oversold condition indicates a particular stock under observation has reached the saturation level & trend change may occur. If this condition is coupled with particular candle, trader may get better results of trend change & opportunity to trade. Let's couple different candles with RSI & search the opportunities to trade. Relative strength index (RSI) used in all these examples is 14-day R ..read more

Gravestone doji coupled with stochastic - The above chart shows gravestone doji at vertical line in price chart. The graph is of Apollo tyre sep-2016. At the vertical line signal line is touching 80-level & stochastic line is near to 80-level(overbought level). If you see left to vertical line a small uptrend occurred & then gravestone doji appeared just slightly before stochastic becomes overbought. See the next candle to vertical line  & it is prominent red. It proves,at overbought region gravestone doji appeared as trendchanger candle.  Hammer coupled with stochastic ..read more

Candlestick depicts the mood & behaviour of market & traders. If candle shows long tails on both the sides it depicts confusion in traders,in which direction the stock is going to proceed, whether it will continue the ongoing trend or a trend reversal. If candlestick is having longer tail on one side, it depicts buying or selling pressure more from one side. So here also we require to confirm the trend. Sometimes candlestick may give false signals which also should be verified. All these conditions can be reaffirmed by coupling candlestick with modern indicators. If candlestick coup ..read more

There are so many trading techniques developed depending upon which indicator trader uses for trading. Crossover methods - In this method, simple moving average(SMA) or exponential moving average(EMA) crossover methods are used. Simple moving average is calculated for a stock under observation for two different time frames, (say 20-day SMA & 50-day SMA) on the stock price chart & intersection of these two lines are treated as buy & sell signals. When SMA line of short duration (in this case 20-day SMA line) crosses & proceeds above the longer duration SMA line(in this case 50-d ..read more