What is the Meaning of Candles in Share Market | Hammer Candle

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1. Hammer candlestick pattern

1. Hammer candlestick pattern

This candle looks exactly like a hammer

1. Hammer candlestick pattern

In Hammer candlestick, the upper part is called the upper wick and the lower part is also called the lower wick and the middle part is called the body. Its biggest identity will be that its lower stem will be longer and the upper one will be shorter. You can call this type of candle a hammer candle.

1. Hammer candlestick pattern

To identify the Hammer candle, it is very important to have these four conditions.

The share price should not be lower in this. If the price is increasing then we will not consider hammer signal there. And the way to identify the candle is that the bottom stick of the candle should be very long and the top stick should be short and the size of the bottom stick should be double the size of the hammer.

1. Hammer candlestick pattern

Hammer candle can be green or it can be red. In this condition, if the candle is green, then it is considered better, because from this candle we will get a signal that now the price of share will go up. So if the candle is green then it is a positive signal for us but even if the color of candle is red then we will consider it as hammer candle but there may also be a chance of the share price going down but if the color of candle is green then There are more chances of the share price going up.

1. Hammer candlestick pattern

The biggest identity of the hammer candle is that whenever you do a dealer of hammer candle, the next candle will be made above the hammer candle. If the candle next to the hammer candle is being made below the hammer candle, then we will not consider that candle as a hammer candle.

1. Hammer candlestick pattern

2. Hanging man candlestick pattern

Hanging man candlestick pattern

The price of share should be rising inside the hanging man candle and we will get this candle upwards and it will mean that the price of share will now go down.

Hanging man candlestick pattern

Its color can also be red and green, but if its color is red then it is considered better, because it will mean that the stock market will fall after the hanging candle, so if the hanging candle or hanging man candle is of red color then more It’s good.

Hanging man candlestick pattern

The next candle made from the hanging man candle should be made below the hanging man candle. If the next candle is formed above then it is not considered as hanging man candle and if the next candle is of red colors and is forming below then it will be a positive signal and it is confirmed that now the market is going to go down.

Types of signal in share market

There are two types of cigna, one is bearish signal and the other is bullish signal.

Bearish signal means market is going to go down and bullish signal means market is going to go up.

What is the difference between hanging man candle and hammer candle

Hanging man candlestick pattern

3. Inverted hammer candle

Inverted hammer and hammer both are the same candle. Both have the same function. The only difference is that the bottom wick of the hammer candle is larger and the lower wick of the inverted hammer is smaller. Everything else is same.

 Inverted hammer candle

In inverted hammer candle also the next candle should be formed above the inverted hammer candle. It can also have both red or green colors. But if it has green color then it will give more positive signal, it will mean that the share market will go up.

 Inverted hammer candle

In Inverted hammer candle we have to take entry at the top point of the candle that means when the share price will come to the upper point then we have to buy the share and here we have to put stop loss at the point just below the hammer candle. But before that we have to check that the next candle should be green and should be formed above it. If the next candle is not forming above the hammer candle then it is not a hammer candle.

4. shooting star candle

Just like an inverted hammer candle is the same shooting star candle. But the biggest difference between them is that inverted hammer candle is formed below and gives bullish signal whereas shooting star candle is formed above and gives bearish signal which would mean that the stock market will go down.

shooting star candle

The way to remember this is that the star is attached to it and the star is above, so it is made above. And this market will give a signal to go down. In appearance, the same inverted hammer is like a candle.

shooting star candle

This candle will be beneficial when we are trading in the down and we will put a stop loss at the top point and take entry at the bottom point which means we will sell the shares.

5. bullish engulfing candle

When the market is going down, then a big green candle is formed in front of the last candle which covers the red candle from above and below, then it is called bullish engulfing candle which means that now the market will go up.

bullish engulfing candle

We have to take entry on the candle ahead of the green candle and put a stop loss on the lower part of the green candle, see friends, even if the candle ahead of the green candle is made, it will mean that the market will go up, you do not think that That if a red candle is formed then the market can go down because the bullish engulfing candle it has formed means that now the market will go up.

bullish engulfing candle

6. Bearish engulfing candle

This is exactly opposite or opposite to the bullish engulfing candle which would mean that the market will go down, in which the red candle will completely cover the green candle and the next candle will form below it and this candle is formed above.

Bearish engulfing candle

Where to buy and sell – On this signal we have to sell the share or do short selling because it is a negative signal which will mean that the market is going to go down.

Bearish engulfing candle

In such a candle, we will enter below. We will put stop loss above because now we have to go down, so we will take entry below and not go up, so we will put stop loss above.

Friends, apart from these 6 candles, there are many candles too, for which I provide you teenage for now. But I have told you about the main candles, even if you have understood well about these candles, then you can generate a lot of income in the share market.

Share market sandals

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