Investment Analysis and Portfolio Management
Assignment
Mridula. S
24BHC1052
[Link]
Candlestick Pattern: Bullish Marubozu (Breakout Candle)
• It is a long green candlestick with little or no upper and lower
wicks.
• The opening price is near the day’s low and the closing price is
near the day’s high.
• It indicates strong buying pressure and complete control by
buyers.
• The pattern often appears during a breakout from a
consolidation or resistance zone.
• High trading volume with this candle confirms strong bullish
momentum.
• It signals the possibility of further upward price movement.
Candlestick Pattern: Bullish Engulfing (Near
Support)
• It is a two-candle bullish reversal pattern.
• The first candle is red (bearish), followed by a
larger green candle that completely covers the
previous red candle’s body.
• It appears after a short downtrend or sharp fall.
• Shows that buyers have taken control over
sellers.
• Formation near a support level increases its
reliability.
• Rising volume confirms strong buying interest.
• It signals a possible upward reversal or short-
term bounce.
Candlestick Pattern: Hammer with Bullish
Confirmation (Reversal Pattern)
• The Hammer candle has a small real body and a
long lower shadow.
• It appears after a downtrend, indicating selling
pressure was rejected.
• The long lower wick shows that buyers stepped
in strongly after prices fell.
• The next strong green candle confirms bullish
reversal.
• Formation near a support zone increases
reliability.
• Volume increase supports genuine buying
interest.
• This pattern signals a possible trend reversal
from bearish to bullish.
Candlestick Pattern: Hammer with Bullish Confirmation (Reversal Pattern)
• The hammer has a small real body with a long lower shadow.
• It forms after a downtrend, showing rejection of lower prices.
• Long lower wick indicates buyers stepped in strongly.
• The following green candle confirms bullish reversal.
• Formation near support increases reliability.
• Rising volume supports genuine buying interest.
Candlestick Pattern: Hammer with Bullish
Confirmation (Reversal Pattern)
• A hammer candle with a small real body
and a long lower shadow is formed.
• Appears after a sustained downtrend,
indicating selling pressure was rejected.
• Long lower wick shows strong buying
interest at lower levels.
• The next strong green candle provides
bullish confirmation.
• Increased volume supports the validity of
the reversal.
• Indicates a possible trend reversal from
bearish to bullish.
Candlestick Pattern: Hammer with Bullish
Confirmation (Reversal Pattern)
• The Hammer candle has a small real body and a
long lower shadow.
• It appears after a downtrend, indicating that
sellers pushed the price down but buyers gained
control.
• The long lower wick shows strong buying
pressure after the fall.
• The next green candle confirms bullish reversal,
showing buyers are continuing to push prices
higher.
• Formation near a support zone increases
reliability of the pattern.
• Volume increase supports genuine buying
interest.
• This pattern signals a possible trend reversal
from bearish to bullish.
Candlestick Pattern: Bullish Marubozu (Strong Bullish Continuation Pattern)
• The Bullish Marubozu candle has a long real body with little or no upper and lower
shadows.
• It shows that buyers were in full control from opening to closing, with almost no
selling pressure.
• It appears during an uptrend, indicating strong bullish momentum.
• The absence of wicks means price moved upward continuously without rejection.
• The large green candle indicates high buying interest and strong demand.
• High volume supports the strength and reliability of this bullish move.
• This pattern signals a strong continuation of the bullish trend.
Candlestick Pattern: Hammer with Bullish
Confirmation (Reversal Pattern)
• The Hammer candle has a small real
body and a long lower shadow.
• It appears after a downtrend, showing
that selling pressure is weakening.
• The long lower wick indicates buyers
pushed the price back up after a fall.
• A strong green candle next confirms
bullish reversal.
• When formed near a support level,
reliability increases.
• Higher volume adds strength to the
signal.
This pattern suggests a possible trend reversal
from bearish to bullish.
Candlestick Pattern: Bearish Marubozu with
Continuation (Bearish Pattern)
• A large red candle with little to
no wicks is visible.
• It shows strong selling pressure
throughout the session.
• The price closed near the day’s
low, indicating sellers were in full control.
• It appears after a recent rise,
signaling a strong reversal or breakdown.
• Increased volume supports the
strength of the move.
This pattern suggests strong bearish
momentum and possible continuation of the
downtrend.
Bullish Flag Pattern (Bullish Continuation)
1. Strong upward move
– Price moved up strongly from around
₹7,060 → ₹7,100+ with long green candles.
2. Sideways / small pullback (flag)
– Price then moved sideways in a narrow
range with small candles.
– This shows consolidation, not weakness.
3. Upside breakout
– Price broke above the consolidation zone
with strong green candles.
– Volume also increased during the breakout.
4. Continuation of uptrend
– After breakout, price continued making
higher highs.