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When first looking at a candlestick chart, the student of the more common bar
charts may be confused; however, just like a bar chart, the daily candlestick line
contains the market's open, high, low and close of a specific day. Now this is where
the system takes on a whole new look: the candlestick has a wide part, which is called
the "real body". This real body represents the range between the open and close of
that day's trading. When the real body is filled in or black, it means the close was
lower than the open. If the real body is empty, it means the opposite: the close was
higher than the open. Just above and below the real body are the "shadows". Chartists
have always thought of these as the wicks of the candle, and it is the shadows that
show the high and low prices of that day's trading. If the upper shadow on the filledin body is short, it indicates that the open that day was closer to the high of the day.
And a short upper shadow on a white or unfilled body dictates that the close was near
the high. The relationship between the day's open, high, low, and close determine the
look of the daily candlestick. Real bodies can be either long or short and either black
or white. Shadows can also be either long or short.
Candlestick Components
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This is a bullish pattern - the stock opened at (or near) its low and
closed near its high.
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In the chart below of EBAY, you see the 'long black body', or 'long black line'.
The long black line represents a bearish period in the marketplace. During the trading
session, the price of the stock was up and down in a wide range and it opened near the
high and closed near the low of the day. By representing a bullish period, the 'long
white body', or 'long white line'--(in the EBAY chart below, the white is actually gray
because of the white background) is the exact opposite of the long black line. Prices
were all over the map during the day, but the stock opened near the low of the day
and closed near the high. 'Spinning tops' are very small bodies and can be either black
or white. This pattern shows a very tight trading range between the open and the
close, and it is considered somewhat neutral.
Many of the investors who rushed to the marketplace in the fall and winter of
1999-2000 had, before that time, never bought a single share in a public company.
The volumes at the top were record breaking and the smart money was starting to
leave the stock market. Hundreds of thousands of new investors, armed with
computers and new online trading accounts, were sitting at their desks buying and
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selling the dotcom flavor of the moment. Like lemmings, these new players took
greed to a level never seen before, and, before long, they saw the market crash around
their feet.
Analyzing Patterns
Traders must remember that a pattern may consist of only one candlestick but
could also contain a number or series of candlesticks over a number of trading days.
A reversal candle pattern is a number or series of candlesticks that normally show a
trend reversal in a stock or commodity being analyzed; however, determining trends
can be very difficult. Perhaps John J. Murphy explains it best in this short piece,
which discusses reversal patterns, from his classic "Technical Analysis of the
Financial Markets". "One serious consideration that must be used to identify patterns
as being either bullish or bearish is the trend of the market preceding the pattern. You
cannot have a bullish reversal pattern in an uptrend. You can have a series of
candlesticks that resemble the bullish pattern, but if the trend is up it is not a bullish
Japanese candle pattern. Likewise, you cannot have a bearish reversal candle pattern
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in a downtrend." The reader who takes Japanese candlestick charting to the next level
will read that there could be as many as 40 or more patterns that will indicate
reversals. One-day reversals form candlesticks such as 'hammers' and 'hanging men'.
A hammer is an umbrella that appears after a price decline, and, according to
candlestick pros, comes from the action of "hammering" out a bottom. If a stock or
commodity opens down and the price drops throughout the session only to come back
near the opening price at close, the pros call this a hammer.
A hanging man is very important to recognize and understand. It is an
umbrella that develops after a rally. The shadow should be twice as long as the body.
Hanging men that appear after a long rally should be taken notice of and acted upon.
If a trading range for the hanging day is above the entire trading range of the previous
day, a "gap" day may be indicated. Lets look at two charts, one with a hammer and
the other with a hanging man. The first charts Lucent Technologies and shows a
classic hanging man. After three days of the stock price rising, the hanging man
appears, and on the following day, the stock price drops over 20%. The second chart
shows a hammer from a period in 2001 when Nortel Networks was trading in the
$55-$70 range. The hammer appears after two days of declining prices and effectively
stops the slide, marking the beginning of a nine-day run with the stock price moving
up $11.
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look for the following patterns. 'falling three methods', 'in-neck', 'on-neck', 'separating
lines', 'side-by-side white lines', and 'black crows'. In this article, we focus on 'falling
three methods', 'separating lines' and 'in-neck'.
Rising Three Methods
This pattern starts out with what is called a "long white day". Then, on the second,
third and fourth trading sessions small real bodies appear - these small real bodies
form from a fall-off in price, but they still stay within the price range of the long
white day (day one in the pattern). The fifth and last day of the pattern shows another
long white day.
This pattern is, in the world of Japanese candlestick charting, a very bullish
chart. It shows an upward trend on day one with investors taking a few trading
sessions to relax to prepare for the next rise in price that occurs on the fifth day. Even
though the pattern shows us that the prices are falling for three straight days, a new
low is not seen and the bulls prepare for the next leg up.
Bullish Mat Hold
This pattern begins with a long white day and then, on the second day of trading, the
issue gaps up and is a black day. What we see next in this pattern is somewhat similar
to the previous pattern.
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The second, third, and fourth days see the issue falling off slightly but not
trading outside the range of the long white day on day one. Finally, the last day in the
pattern is another long white day that closes above the close of the first long white
day.
Separating Lines (Bullish)
In the pattern of bullish separating lines, you can see that the first day is a black day
and the next day is a white day. The key to the second day is that the issue has the
same opening price as day one.
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Look close and you can see that a new high is not formed from the high set on the
first day. This is a very bearish signal and short sellers react strongly to this pattern.
In-Neck (Bearish)
The first day of the in-neck continuation pattern is a long black day and the second
is a white day that shows an opening of trading below the low of the prior trading
session. Then on the close the price is equal to or just above the closing price of the
prior session.
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This pattern has the bears looking for the falling trend to continue but it may be some
time before it is confirmed.
The Patterns
We continue this look at candle charts with some additional patterns on both the
bullish and bearish sides of the equation. On the bullish side of the market, show you
the 'engulfing pattern', 'harami', and the 'harami cross'. Opposite, on the bearish
side, we will have a closer look at the 'engulfing pattern', 'the evening star' and both
the 'harami' and the 'harami cross'.
Engulfing Pattern - Bearish
Engulfing pattern (bearish) develops in an uptrend when the sellers outnumber
the buyers; this action is reflected by a long red real body engulfing a small green real
body.
You can see the opening was higher than the previous day, and, during the trading
session, the issue sold off with volume much greater than the previous session.
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As you can see, this is a chart of an issue in a downtrend that has now lost
momentum. The buyers may be coming back into this issue, creating a trend reversal
and bottoming out of this downtrend.
Evening Star - Bearish
Evening star (bearish) is a top reversal pattern that is very easy to identify
because the last candle in the pattern opens below the previous days' small real body,
which can be either red or green and closes deep into the real body of the trading
range of the candle two day's prior.
This pattern shows that investors are perhaps losing confidence in the issue and it's
direction. This thought process will be confirmed if the next day is another down
session.
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Harami - Bearish
Harami (bearish) is another very recognizable candlestick pattern that shows
a small real body (red) completely inside the previous day's real body.
Technicians will watch very closely now because the harami bearish indicates that
the current uptrend may be coming to an end, especially if the volume is light.
Students of candlestick charts will also recognize the harami pattern as the first two
days of the three inside pattern.
Harami - Bullish
Harami (bullish) is just the mirror reflection of the harami bearish. As you can
see in the chart above, a downtrend is in play and a small real body (green) is shown
inside the large real body (red) of the previous day. This tells the technician that the
trend is coming to a conclusion. The harami implies that the preceding trend is about
to conclude. A candlestick closing higher the next day would confirm the trend
reversal.
Harami Cross - Bearish
Harami cross (bearish) is a pattern of a harami with a doji instead of a small real
body following up on the next trading session. The doji is within the range of the real
body of the prior session.
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Like the harami, the trend starts out in play, but the market then decides to reverse
intra-day with volume being somewhat non-existent and the pattern closing at the
same price as the issue opened. The uptrend has been reversed.
Harami Cross - Bullish
The harami cross, whether the bullish or bearish version, starts out looking
like the basic harami pattern. The harami cross bullish is the exact opposite of the
harami cross bearish and does not require any further explanation. Again, a trend has
been reversed.
This four-part series barely scratches the surface of Japanese candlestick charts and
the interpretation of the patterns. If you want to gain more in-depth knowledge be
sure to read Steve Nison's excellent books on the subject.
Advanced Candlestick Patterns
Candlestick patterns can give you invaluable insight into price action at a
glance. While the basic candlestick patterns can tell you what the market is thinking,
they often generate false signals because they are so common. Here we introduce you
to more advanced candlestick patterns, with a higher degree of reliability, as well as
explore how they can be combined with gaps to produce profitable trading strategies.
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Here are some important things you need to consider when using this pattern:
Entry: Confirming the reversal pattern - When looking for an island reversal,
you are looking for indecision and a battle between bulls and bears. This type of
scenario is best characterized by a long-ended doji candle that has high volume
occurring after a long prior trend; it is important to look for these three elements to
confirm any potential reversal pattern.
Exit: Defining the target and stop - In most cases, you will see a sharp reversal
(as seen in Figs.1 and 2) when using this pattern. This reversal pattern does not
necessarily indicate a medium- or long-term reversal, so it would be prudent to exit
your position after the swing move has been made. If the next candle ever fills the
gap, then the reversal pattern is invalidated, and you should exit prudently.
Island reversals can also occur in "clusters" - that is, in a multi-candle reversal
pattern, such as an engulfing, as opposed to a single candle reversal. Clusters are
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easier to spot, but they often result in weaker reversals that are not as sharp and take
longer to occur.
Hook Reversal Patterns
Hook reversals are short- to medium-term reversal patterns. They are identified by a
higher low and a lower high compared to the previous day. Figures are two examples
that occurred on the chart of Microsoft Corp. (MSFT).
Here are some important things you need to consider when using this pattern:
Entry: Confirming the reversal pattern - When looking for an island reversal,
you are looking for indecision and a battle between bulls and bears. This type of
scenario is best characterized by a long-ended doji candle that has high volume
occurring after a long prior trend; it is important to look for these three elements
to confirm any potential reversal pattern.
Exit: Defining the target and stop - In most cases, you will see a sharp reversal
(as seen in Figs. 1 and 2) when using this pattern. This reversal pattern does not
necessarily indicate a medium- or long-term reversal, so it would be prudent to
exit your position after the swing move has been made. If the next candle ever
fills the gap, then the reversal pattern is invalidated, and you should exit prudently
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Island reversals can also occur in "clusters" - that is, in a multi-candle reversal
pattern, such as an engulfing, as opposed to a single candle reversal. Clusters are
easier to spot, but they often result in weaker reversals that are not as sharp and take
longer to occur.
San-Ku (Three Gaps) Patterns
San-ku patterns are anticipatory trend reversal indicators. In other words, they do not
indicate an exact point of reversal; rather, they indicate that a reversal is likely to
occur in the near future. They are identified by three gaps within a strong trend. Here
is an example that occurred on the chart of Microsoft Corp. (MSFT).
Here are some important things to remember when using this pattern:
Entry: Confirming the reversal pattern - This pattern operates on the premise
that prices are likely to retreat after sharp moves because traders are likely to start
booking profits. Therefore, this pattern is best used with other exhaustion
indicators. So, look for extremes being reached in indicators such as the RSI
(relative strength index), MACD (moving average convergence divergence)
crossovers, and other such indicators. It is also useful to look for volume patterns
that suggest exhaustion.
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Exit: Defining the target and stop - In most cases, when using this pattern, you
will see a price reversal shortly after the third gap takes place (as seen in Fig. 5).
However, if there are any breakouts on high volume after the last gap, then the
pattern is invalidated, and you should exit quickly, but prudently.
Kicker Patterns
Kicker patterns are some of the strongest, most reliable candlestick patterns. They
are characterized by a very sharp reversal in price during the span of two
candlesticks. Here's an example that occurred on the Microsoft (MSFT) chart.
Here are some important things you need to remember when using this pattern:
Entry: Confirming the reversal pattern - This kind of price action tells you that
one group of traders has overpowered the other (often as a result of a fundamental
change in the company), and a new trend is being established. Ideally, you should
look for a gap between the first and second candles, along with high volume.
Exit: Defining a target and stop - When using this pattern, you will see an
immediate reversal, which should result in an overall trend change. If the trend
instead moves sideways or against the reversal direction, then you should exit
quickly, but prudently.
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GOLD
Commodity Symbol: Gold
Open
High
Low
(Rs)
(Rs)
(Rs)
Close
(Rs)
Date
Contract/Expiry
Month
3/10/2006
5-Dec-06
9149
9149
8830
8845
4/10/2006
5-Dec-06
8825
8888
8601
8659
5/10/2006
5-Dec-06
8697
8778
8631
8733
6/10/2006
5-Dec-06
8715
8748
8582
8731
7/10/2006
5-Dec-06
8739
8748
8725
8733
9/10/2006
5-Dec-06
8750
8853
8726
8806
10/10/2006
5-Dec-06
8819
8833
8677
8718
11/10/2006
5-Dec-06
8716
8777
8672
8701
12/10/2006
5-Dec-06
8705
8755
8664
8732
13-10-2006
5-Dec-06
8740
8868
8721
8860
14-10-2006
5-Dec-06
8869
8910
8866
8902
16-10-2006
5-Dec-06
8892
8957
8876
8951
17-10-2006
5-Dec-06
8960
8980
8796
8838
18-10-2006
5-Dec-06
8840
8895
8815
8825
19-10-2006
5-Dec-06
8823
8938
8773
8917
20-10-2006
5-Dec-06
8938
8958
8841
8856
21-10-2006
5-Dec-06
8850
8867
8840
8856
23-10-2006
5-Dec-06
8865
8865
8688
8696
24-10-2006
5-Dec-06
8691
8756
8596
8740
25-10-2006
5-Dec-06
8732
8820
8675
8782
26-10-2006
5-Dec-06
8791
8896
8791
8867
27-10-2006
5-Dec-06
8847
8899
8811
8868
28-10-2006
5-Dec-06
8875
8890
8875
8881
30-10-2006
5-Dec-06
8890
8965
8881
8927
31-10-2006
5-Dec-06
8920
8924
8827
8894
1/11/2006
5-Dec-06
8904
8999
8904
8969
2/11/2006
5-Dec-06
8980
9129
8980
9116
3/11/2006
5-Dec-06
9108
9173
9033
9163
4/11/2006
5-Dec-06
9158
9188
9149
9162
6/11/2006
5-Dec-06
9170
9179
9101
9148
7/11/2006
5-Dec-06
9144
9171
9115
9136
8/11/2006
5-Dec-06
9142
9143
9027
9041
9/11/2006
5-Dec-06
9026
9175
8983
9162
10/11/2006
5-Dec-06
9148
9242
9118
9142
11/11/2006
5-Dec-06
9150
9152
9142
9147
13-11-2006
5-Dec-06
9169
9207
9095
9137
14-11-2006
5-Dec-06
9146
9197
9098
9140
Contract/Expiry
Month
Open (Rs)
High (Rs)
Low (Rs)
Close
(Rs)
5-Dec-06
9153
9172
9080
9165
Date
15-11-2006
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16-11-2006
5-Dec-06
9160
9178
9105
9116
17-11-2006
5-Dec-06
9101
9109
9009
9085
18-11-2006
5-Dec-06
9081
9088
9077
9085
20-11-2006
5-Dec-06
9095
9139
9071
9086
21-11-2006
5-Dec-06
9095
9148
9093
9126
22-11-2006
5-Dec-06
9115
9184
9113
9127
23-11-2006
5-Dec-06
9129
9149
9129
9142
24-11-2006
5-Dec-06
9144
9233
9144
9222
25-11-2006
5-Dec-06
9224
9260
9220
9256
27-11-2006
5-Dec-06
9263
9280
9221
9247
28-11-2006
5-Dec-06
9247
9259
9164
9217
29-11-2006
5-Dec-06
9240
9252
9184
9206
30-11-2006
5-Dec-06
9214
9277
9191
9269
1/12/2006
5-Dec-06
9250
9323
9240
9290
2/12/2006
5-Dec-06
9301
9320
9284
9309
4/12/2006
5-Dec-06
9300
9313
9240
9265
5/12/2006
5-Dec-06
9297
9346
9202
9356
Date
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The graph represents the Candlestick patterns formed by the gold prices of the
contract ending on 05-dece-06. At starting point the market is having the Bearish
trend, and highly volatile. There is long black stick is formed at the starting point, it
means the market has opened near its high and closed near its low. There is also Star
pattern which states that the current trend is changing, in the same way the current
trend has changed from Bullish to Bearish. And also there is Bullish hammer pattern
is formed which states that the market is going in to the down word trend. There is
high volatility in the gold prices, at the end there is a hammer pattern is formed which
is Bullish hammer, which states that the market will go in to the reverse trend that is
in Bearish trend, the reason will be the contract expiry date come to an end.
SILVER
Commodity Symbol: Silver ( Contract Expiry month 5-dec-06)
Open
High
Low
Date
(Rs)
(Rs)
(Rs)
Close (Rs)
3/10/2006
18165
18229
17390
17435
4/10/2006
17301
17508
16933
17167
5/10/2006
17251
17575
17091
17481
6/10/2006
17450
17637
17193
17610
7/10/2006
17600
17643
17541
17571
9/10/2006
17645
18016
17645
17896
10/10/2006
17917
17953
17545
17625
11/10/2006
17632
17870
17482
17707
12/10/2006
17696
17810
17522
17723
13-10-2006
17766
18065
17685
18043
14-10-2006
18056
18199
18056
18181
16-10-2006
18123
18390
18050
18361
17-10-2006
18351
18399
17915
18045
18-10-2006
18072
18314
18070
18125
19-10-2006
18101
18425
17921
18387
20-10-2006
18375
18460
18156
18230
21-10-2006
18240
18295
18233
18248
23-10-2006
18254
18254
17861
17891
24-10-2006
17860
18167
17470
18096
25-10-2006
18090
18278
17951
18165
26-10-2006
18205
18537
18205
18462
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27-10-2006
18408
18489
18253
18325
28-10-2006
18335
18363
18323
18343
30-10-2006
18375
18524
18301
18447
31-10-2006
18423
18510
18175
18484
1/11/2006
18500
18710
18466
18584
2/11/2006
18622
18850
18568
18828
3/11/2006
18806
18974
18538
18868
4/11/2006
18874
18876
18821
18836
6/11/2006
18876
19059
18725
18995
7/11/2006
18980
19005
18821
18926
8/11/2006
18920
18945
18697
18734
9/11/2006
18695
19185
18675
19130
10/11/2006
19151
19455
19141
19264
11/11/2006
19330
19330
19273
19290
13-11-2006
19325
19438
19066
19216
14-11-2006
19236
19398
19120
19246
15-11-2006
19250
19375
18960
19347
16-11-2006
19342
19475
19265
19316
17-11-2006
19300
High
(Rs)
18942
Low
(Rs)
19149
Date
19300
Open
(Rs)
Close (Rs)
18-11-2006
19133
19148
19128
19133
20-11-2006
19149
19325
19075
19123
21-11-2006
19129
19376
19129
19315
22-11-2006
19310
19489
19270
19321
23-11-2006
19331
19389
19331
19366
24-11-2006
19377
19669
19377
19648
25-11-2006
19669
19897
19666
19867
27-11-2006
19825
19941
19745
19824
28-11-2006
19825
19937
19723
19882
29-11-2006
19940
20088
19851
19948
30-11-2006
19950
20449
19880
20395
1/12/2006
20340
20579
20335
20570
2/12/2006
20647
20705
20631
20654
4/12/2006
20685
20750
20559
20727
5/12/2006
21502
21502
20300
20406
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Indiabulls
Date
The graph represents the Candlestick patterns formed by the Silver prices of
the contract ending on 5- December -06.Silver market has opened in the Bearish
trend, it has opened at its higher value and closed at its low value. There is a star
which states that the market will change in reverse trend, accordingly the market
trend has changed from Bearish to Bullish. The silver market is also having the high
volatility, because of the reason that the silver is considered as the next precious metal
after the gold. The silver is bought and sold mostly in huge quantity, in Kgs, the
Candlestick explains the fluctuations in the silver price in silver market. The market is
having both the up trend and also the down trend. There is a long black stick is
formed at the end, which represent that the market has dropped for the longer period,
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and continue in the Bearish trend, the reason may be the contract expiry period comes
to an end.
COPPER
Commodity Symbol: Copper
Open
High
Low
Date
(Rs)
(Rs)
(Rs)
Close (Rs)
1/9/2006
358.5
359.8
353.5
356.8
2/9/2006
357.3
357.5
356.8
357.25
4/9/2006
357.9
360.85
357.35
358.65
5/9/2006
359.25
372.35
358
369
6/9/2006
369.8
374.8
367
373.45
7/9/2006
373.5
375.45
368.25
371.45
8/9/2006
371.7
371.9
361.8
364.9
9/9/2006
365.15
365.9
364.55
365.35
11/9/2006
364.65
364.65
348.8
352.25
12/9/2006
352.9
355.35
347.1
349.5
13-09-06
349
352.4
343.05
349.3
14-09-06
350.85
354.15
345.35
347.45
15-09-06
346.1
346.9
337.5
342.9
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16-09-06
342.65
343.9
342.5
343.3
18-09-06
344.1
19-09-06
351.5
351.65
342.6
351.25
351.5
345.75
347.15
20-09-06
21-09-06
346.05
347.1
335.65
346.4
345.6
350.9
343.1
349.55
22-09-06
350.8
356.5
347.1
350.9
23-09-06
351
351.35
350.6
351.1
25-09-06
351.4
352.8
343.25
351.7
26-09-06
352
355.6
348.8
353.15
27-09-06
352.8
359.45
351.8
354.9
28-09-06
355.5
358
348.7
350.8
29-09-06
349.8
355.2
349.35
353.1
30-09-06
353.4
353.55
352.5
352.9
3/10/2006
351.55
351.55
337.2
337.65
4/10/2006
338.95
343.3
327.65
331.35
5/10/2006
333
340.6
328.7
338.75
6/10/2006
338
347.9
336.3
346.6
7/10/2006
346.25
346.9
345.75
346.1
9/10/2006
347.1
351.15
345.9
348.15
10/10/2006
347.6
349.15
343.2
344.95
11/10/2006
344.65
348.8
342.25
346.8
12/10/2006
346.75
347.8
340
344.85
13-10-06
345.95
348.45
343.05
345.9
14-10-06
346.9
High
(Rs)
345.9
Low
(Rs)
346.75
Date
346
Open
(Rs)
16-10-06
345.8
359.7
344.8
358.9
17-10-06
358.9
361.5
350.6
352.35
18-10-06
352.5
355
349.65
352.1
19-10-06
352.2
354.3
350.25
352.8
20-10-06
353
354.1
346.6
348.8
21-10-06
349
350.2
349
349.55
23-10-06
349.6
350.25
344.05
347.45
24-10-06
346.1
346.1
338.85
344.75
25-10-06
344.9
345.2
340.1
343.7
26-10-06
344
346.5
341.55
343.2
27-10-06
343.5
344.7
341.25
343.2
28-10-06
343.6
343.7
343.05
343.35
30-10-06
342.3
343.05
331.5
337.45
Close (Rs)
31-10-06
337.05
339.15
334.85
336.55
1/11/2006
336.85
338.2
323.95
326
2/11/2006
326.95
330.3
325.1
329.5
3/11/2006
329.2
333.75
326.85
331.8
4/11/2006
331.6
331.8
331.1
331.55
6/11/2006
332
335.7
328.3
333.95
140
Indiabulls
7/11/2006
333.5
338.6
332.8
334.65
8/11/2006
334.15
9/11/2006
323.3
334.25
322
323.35
328.6
320.5
327.8
10/11/2006
11/11/2006
327.9
327.9
308.15
309.4
309.9
309.9
305.5
306.65
13-11-06
307.25
311.55
301.6
307.05
14-11-06
308.2
313.35
305.6
309.1
15-11-06
308.5
312.2
305.15
310.45
16-11-06
309.6
310.8
303.35
305.05
17-11-06
305
305.4
296.65
304.45
18-11-06
303.85
304.8
303.5
304.25
20-11-06
303.7
308.7
301.45
303.55
21-11-06
304
310.8
302.5
309.5
22-11-06
309.35
314.55
307.3
308.85
23-11-06
308.35
310.65
308.35
310.3
24-11-06
311
318.3
311
317.1
25-11-06
318
318.5
317
318.1
27-11-06
318.85
321.1
313.7
315
28-11-06
315
316.4
307.95
310.7
29-11-06
311
312.6
306
309.3
30-11-06
310.7
314.7
308
312.95
Date
The graph explains the Candlestick pattern formed by the Copper prices, of
contract ending on 05- December-06. The copper market has opened in the Bearish
Belgaum Institute of Management Studies, MBA
141
Indiabulls
trend, and after some time the market catch up the up trend, after that there is a star
pattern created, which states that the next trend of the market will be the opposite of
previous trend. The previous trend in this copper market is the Bullish trend which
has been change to the Bearish trend. After that the Bearish trend is followed for the
longer period. The Bearish Hammer is also formed which states that the market will
have sudden change in its trend, and accordingly the trend have changed in to Bullish
trend. As it s a three month contract we can find good fluctuations in the copper
market, there is also the long black stick is formed, it is because of the market has
opened in the high price and closed in the low price for a long period, which states
that the market trend will change in to Bullish after some time and accordingly the
Bullish trend has started. We can find that there are fewer fluctuations at the end side,
because of the contract expiry is nearer.
142