Bearish Engulfing Candlestick Pattern
A bearish swallowing pattern occursat theend of an uptrend.The first candle has a small green body which is engulfed by a sub sequentlong red candle.
This signifies a spike or slow down in price movement and is a sign of an impending market down turn.The lower the second candle,the more significant the trend is likely to be.
Beginner Tip
Candlestick Chart
Now let's see what is included in a candlestick chart. In the 17th century, a Japanese rice trader was the first to create a candlestick chart to analyze the market. This method has been improved and used today. A candlestick chart basically shows green and red boxes. These boxes are called candles and the green boxes represent the rising market price. Red boxes represent declining market prices. Here we have the price per box. The specified time can be changed from 1 minute to 1 month. As the basic characteristics of a candlestick nest, 3 parts can be indicated.
Candlestick body
High Vick
Lower Vick
I mentioned earlier that green color represents price increase and red color represents price decrease. And in the market, the green candlestick is called Bullish candlestick and the red candlestick is called bearish candlestick. Colored candle prices start at the top and end at the bottom. Likewise, if the price goes up against the time frame we have chosen in the chart, if the price does not close at that time, it moves down and when the price closes, an Upper Wick is created. In this way, the price moves down and does not end there. After the top, a bottom wick is created. To explain this further, let us take for example a share of a company in the stock market and suppose that when the stock market opens in the morning, its price is 50 rupees.
This price does not stay at one place, the price goes up and down due to increase and decrease in demand, so on the relevant day the price decreases to 45 due to decrease in demand. The day is not over yet. Again due to increased demand the price rises to 60 but by the end of the day the price closes at 55. Here are the facts shown by the Green Candlestick. In Red Candlestick, the opposite happens. Here the starting point of the price is called Open and the ending point is called Close. Also, the point at which the price goes down from Open is called Low and the point at which it rises is called High. Vic is created from these two places.
Also, I have said that when you go to the chart and bring the arrow over the desired candlestick, you will see the Open, Close, High, Low prices clearly.
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