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How Many Types of Candlestics Pattern Are There in Indian Stock Market

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There are numerous candlestick patterns used in the Indian stock market, just as in other financial markets. These patterns are formed by the open, high, low, and close prices of a particular trading period (such as a day, week, or month) and are used by traders and analysts to predict future price movements.

Some of the common candlestick patterns observed in the Indian stock market include:

Doji: A Doji occurs when the open and close prices are virtually the same, indicating indecision in the market.

Bullish Engulfing Pattern: This pattern consists of a small bearish candlestick followed by a larger bullish candlestick that completely engulfs the previous candlestick, suggesting a potential reversal to the upside.

Bearish Engulfing Pattern: The opposite of the bullish engulfing pattern, this occurs when a large bearish candlestick engulfs the previous smaller bullish candlestick, indicating a potential reversal to the downside.

Hammer: A Hammer candlestick has a small body with a long lower shadow and little to no upper shadow, indicating that sellers drove prices lower during the session but buyers managed to push prices back up by the close.

Shooting Star: The Shooting Star candlestick has a small body with a long upper shadow and little to no lower shadow, indicating that buyers pushed prices higher during the session but sellers managed to push prices back down by the close.

Morning Star: This bullish reversal pattern consists of three candlesticks – a long bearish candlestick, followed by a small candlestick with a lower body, and finally a long bullish candlestick that closes above the midpoint of the first candlestick.

Evening Star: The opposite of the Morning Star pattern, the Evening Star is a bearish reversal pattern consisting of three candlesticks – a long bullish candlestick, followed by a small candlestick with a higher body, and finally a long bearish candlestick that closes below the midpoint of the first candlestick.

Hanging Man: Similar to the Hammer candlestick, the Hanging Man has a small body with a long lower shadow and little to no upper shadow, but it occurs after an uptrend and signals a potential reversal to the downside.

These are just a few examples of candlestick patterns commonly observed in the Indian stock market. Traders often use these patterns in combination with other technical analysis tools to make informed trading decisions.

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