Stock Market Analysis for Sos

1. Stock MarketAnalysis
Candlestick Patterns
Himanshu Kumar (2101100047)
Mentor – Shlok Puri
Summer of Science 2022

2. Introduction
• Heavily utilized in technical analysis.
• The market's emotions are reflected
in candlestick patterns.
• Changes in emotion that provide
early indicators of a trend's reversal
or continuation.
• Displays the low, high, opening, and
closing prices for the specified time
period.
• The capacity to assess market
sentiment during a given period.

3. Bearish
Engulfing
Pattern
• When this pattern forms during an
uptrend, a top has formed.
• Markets start higher than the prior
close and close lower than the
prior open.
• This pattern suggests that
purchasing enthusiasm has been
beaten by selling pressure.
• Trading strategy:
Sell when a bearish engulfing
pattern forms.
Utilize other technical
indications to determine the aim.

4. Bullish
Engulfing
Pattern
• Formation of this pattern in a
downtrend indicates a
bottom formation.
• Markets open below the
previous close and end above
the previous open.
• This pattern indicates that
buying pressure has
overcome selling interest.
• Trading Strategy:
Buy on the formation of a
bullish engulfing pattern.
Determine the target using
other technical indicators.

5. Hammer
• Shows a long lower shadow and
a small body.The body can be
bullish (blue) or bearish (red)
• The longer the shadow and
smaller the body the more
bullish the pattern.A bullish
body gives a stronger signal than
a bearish body.
• The long shadow indicates
buying interest at lower levels.
• Trading Strategy:
Buy on a bullish candle close
after the hammer.
Determine target using other
technical indicators.

6. Hanging Man
• Shows a long lower shadow and a small
body.The body can be bullish (blue) or
bearish (red)
• The longer the shadow and smaller the
body the more bearish the pattern. A
bearish (red) body gives a stronger signal
than a bullish (blue) body.
• The pattern indicates that the market is
having problems moving higher and
selling interest is coming at higher levels.
• Trading Strategy:
Sell on a bearish candle close after the
hanging man.
Determine target using other technical
indicators.

7. ShootingStar
• This is a top reversal pattern.
• The pattern has a long top shadow
with a small body indicating selling
pressure at higher levels.
• Trading Strategy:
Sell on confirmation of the
shooting star pattern with another
bearish candle.
Determine target using other
technical indicators.

8. MorningStar
• This is a bottom reversal pattern.
• This is a three candlestick pattern.The
first candle is bearish, the second is
bullish with a small body and a gap
open below the close of the bearish
candle.The third candle is a bullish
candle confirming change in
sentiment.
• Trading Strategy:
Buy on a formation of the morning
star pattern.
Stop below the low of the middle
candle.
Determine target using other
technical indicators.

9. EveningStar
• This is a top reversal pattern.
• This is a three candlestick pattern.
The first candle is bullish, the
second is bearish with a small
body and a gap open above the
close of the bullish candle.The
third candle is a bearish candle
confirming change in sentiment.
• Trading Strategy:
Sell on a formation of the
evening star pattern.
Stop above the high of the
middle candle.
Determine target using other
technical indicators

10. Thank You