TRADING
BOOTCAMP
BOOTCAMP
CLASS OUTLINE
Section1 Section2 Section3
Single Double Triple
Candlestick Candlestick Candlestick
Q&A Q&A
Pattern Pattern Pattern
Note:
1. Have a pen and paper to note down important concepts
2. Message your questions in the chat and Arvind will ask during the QnA session.
3. Study Material will be shared in the WhatsApp group.
PRICE CHART
Time Price
TIME FRAME
Minutes,
Daily
Hourly
Weekly Monthly
JAPANESE CANDLESTICK CHART
1. In the end of 17th century, a rice trader named was M. Homma
invented this technique to predict future price directions of rice.
2. Steve Nison heard about Homma invention and he learnt about
it and introduced rest of world about this beautiful charting
technique.
Advantages
Easy to interpret.
Reflects psychology of market in a simple manner.
JAPANESE CANDLESTICK
Upper shadow O Opening price
H Highest price
Real Body
L Lowest price
Lower shadow
C Closing price
BULLISH CANDLE
H Close > Open
Demand > Supply
C
Bull > Bear
O Buying Interest > Selling Interest
L
Winner : Bull
BEARISH CANDLE
H Close < Open
Demand < Supply
O
Bull < Bear
C Buying Interest < Selling Interest
L Winner : Bear
DOJI CANDLE
No Real Body
C O Inconclusive Interest
L
HAMMER
1 CANDLESTICK PATTERN
PATTERN : UMBRELLA-HAMMER
Action : Buy | Stop Loss : Low of Hammer
PSYCHOLOGY OF HAMMER
PROPERTIES OF HAMMER
Downtrend/fall in price.
No or very small upper shadow.
Lower shadow should be at least two to three
times of real body.
Real body size should be small.
Colour doesn't matter.
APPROACHES IN TRADING
HAMMER
Aggressive Approach
Conservative Approach
Balanced Approach
HANGING
MAN
1 CANDLESTICK PATTERN
PSYCHOLOGY OF HANGING MAN
R/G
C Close below
real body
Action : Sell | Stop Loss : Highest High
PATTERN : HANGING MAN
200
199
196
194 Close below
real body
188
Expected fall
Rise in price in price
PROPERTIES OF HANGING MAN
Uptrend/rise in price.
No or very small upper shadow.
Lower shadow should be at least two to three
times of real body.
Real body size should very small.
Real body colour does not matter.
2nd candle should close below the real body of
1st candle.
SHOOTING
STAR
1 CANDLESTICK PATTERN
PATTERN : SHOOTING STAR
Action : Sell | Stop Loss : High Of Shooting Star
PSYCHOLOGY OF SHOOTING STAR
PROPERTIES OF SHOOTING STAR
Uptrend/rise in price.
No or very small lower shadow.
Upper shadow should be atleast two to three
times of real body.
Real body size should be small.
Colour doesn't matter.
INVERTED
HAMMER
1 CANDLESTICK PATTERN
PATTERN : INVERTED HAMMER
Close above
C
real body
R/G
Action : Buy| Stop Loss : Lowest low
PSYCHOLOGY OF INVERTED
HAMMER
Expected Rise
in price
200
Fall in price Close above
196
real body
194
R/G
192
191
PROPERTIES OF HANGING MAN
Downtrend/fall in price.
No or very small lower shadow.
Upper shadow should be atleast two to three
times of real body.
Real body size should very small.
Real body colour does not matter.
2nd candle should close above the real body of
1st candle.
BULLISH
ENGULFING
2 CANDLESTICK PATTERN
PATTERN : BULLISH ENGULFING
Action : Buy | Stop Loss : Lowest Low
PSYCHOLOGY OF BULLISH
ENGULFING
PROPERTIES OF BULLISH
ENGULFING
Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs whole real body of
1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation.
PIERCING
2 CANDLESTICK PATTERN
PATTERN : PIERCING
Action : Buy | Stop Loss : Lowest Low
PSYCHOLOGY OF PIERCING
PROPERTIES OF PIERCING
Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs more than 50% real
body of 1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation.
BULLISH
THRUSTING
2 CANDLESTICK PATTERN
PATTERN : BULLISH THRUSTING
Action : Buy | Stop Loss : Lowest Low
PSYCHOLOGY OF BULLISH
THRUSTING
PROPERTIES OF BULLISH
THRUSTING
Downtrend/fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle should engulfs less than 50% real
body of 1st candle, shadows doesn't matter.
Extra volume on 2nd candle will provide extra
confirmation
BEARISH
ENGULFING
2 CANDLESTICK PATTERN
PATTERN : BEARISH ENGULFING
Action : Sell| Stop Loss : Highest High
PSYCHOLOGY OF BEARISH
ENGULFING
PROPERTIES OF BEARISH
ENGULFING
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle should engulfs whole real body of
1st candle, shadows doesn't matter.
DARK
CLOUD
COVER
2 CANDLESTICK PATTERN
PATTERN : DARK CLOUD
CLOVER
Action : Sell| Stop Loss : Highest High
PSYCHOLOGY OF DARK CLOUD
CLOVER
PROPERTIES OF DARK CLOUD
CLOVER
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle should engulfs more than 50% real
body of 1st candle, shadows doesn't matter
BULLISH
HARAMI
2 CANDLESTICK PATTERN
PATTERN : BULLISH HARAMI
Action : Buy| Stop Loss : Lowest Low
PSYCHOLOGY OF BULLISH HARAMI
PROPERTIES OF BULLISH
HARAMI
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Red/Green candle
2nd candle real body should very small.
2nd candle real body should lies inside of real
body of first candle, shadows of 2nd candle
does not matter.
BULLISH
HARAMI
CROSS
2 CANDLESTICK PATTERN
PATTERN : BULLISH HARAMI
CROSS
Action : Buy| Stop Loss : Lowest Low
PSYCHOLOGY OF BULLISH HARAMI
CROSS
PROPERTIES OF BULLISH
HARAMI CROSS
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Doji
Doji should lies inside of real body of first
candle, shadows of doji does not matter.
BEARISH
HARAMI
2 CANDLESTICK PATTERN
PATTERN : BEARISH HARAMI
Action : Sell| Stop Loss : Highest High
PSYCHOLOGY OF BEARISH HARAMI
PROPERTIES OF BEARISH
HARAMI
Uptrend / rise in price.
1st candle = Green candle
2nd candle = Red/Green candle
2nd candle real body should very small.
2nd candle real body should lies inside of real
body of first candle, shadows of 2nd candle
does not matter.
BEARISH
HARAMI
CROSS
2 CANDLESTICK PATTERN
PATTERN : BEARISH HARAMI
CROSS
Action : Sell| Stop Loss : Highest High
PSYCHOLOGY OF BEARISH HARAMI
CROSS
PROPERTIES OF BEARISH
HARAMI CROSS
Uptrend / rise in price.
1st candle = Green candle
2nd candle = Doji
Doji should lies inside of real body of first
candle, shadows of doji does not matter.
BULLISH
COUNTER
ATTACK LINE
2 CANDLESTICK PATTERN
PATTERN : BULLISH
COUNTERATTACK LINE
Action : Buy| Stop Loss : Lowest Low
PSYCHOLOGY OF BULLISH
COUNTERATTACK LINE
PROPERTIES OF BULLISH
COUNTERATTACK LINE
Downtrend / fall in price.
1st candle = Red candle
2nd candle = Green candle
2nd candle close should almost equal to the
close of 1st candle
BEARISH
COUNTER
ATTACK LINE
2 CANDLESTICK PATTERN
PATTERN : BEARISH
COUNTERATTACK LINE
Action : Sell | Stop Loss : Highest High
PSYCHOLOGY OF BEARISH
COUNTERATTACK LINE
PROPERTIES OF BEARISH
COUNTERATTACK LINE
Uptend / rise in price.
1st candle = Green candle
2nd candle = Red candle
2nd candle close should almost equal to the
close of 1st candle.