{Educational} ... Fight in INFY.......!
Hello Everyone ... I m going to share one of my observation , may it will help all of you for understanding one of the way in which price flows ...........
Stomach Pattern Definition and Action.
1) Above Stomach Pattern
•What is Above Stomach Pattern ?
The above stomach pattern is a two candlestick pattern which evolves over a period of two sessions. It requires a existing downtrend and usually appears at the bottom of a downtrend.
• Psychology Behind Above Stomach Pattern.
The first day of the pattern, bears are still in control as we have a confirmed downtrend. Second day, price opens higher above the mid of point of previous filled candle and also closes above the mid point .This clearly indicates that sentiments have changed completely and further buying will happen in coming sessions.
• How to Trade Below Stomach Pattern ?
- Decision :
In case of Above stomach pattern,traders should start looking for buying opportunities, buy price should be around the close price of hollow candle after the filled candle.
- Stop loss :
What if the market reverse its direction after printing the above stomach pattern? The lowest low of the two candles making above stomach pattern will act as stop-loss in case that happen.
2) Below Stomach Pattern
• What Below Stomach Pattern ?
The below stomach pattern is a two candlestick pattern which evolves over a period of two sessions. It requires a existing uptrend and usually appears at the top of a uptrend.
• Psychology Behind Below Stomach Pattern
The first day of the pattern, bulls are still in control as we have a confirmed uptrend. Second day, price opens lower, below the mid of point of previous hollow candle and also closes below the midpoint .This clearly indicates that sentiments have changed completely and further selling will happen in coming sessions.
• How to Trade Below Stomach Pattern.
- Decision :
In case of Below stomach pattern,traders should start looking for selling opportunities, sell price should be around the close price of filled candle after the hollow candle.
- Stop loss :
What if the market reverse its direction after printing the below stomach pattern? The highest high of the two candles making below stomach pattern will act as stop-loss in case that happen.
• Main Points to Consider
• If it appears at support/resistance , it will make for high probability setup.
• Pattern with large body works better compared to the pattern with short bodies.
Stomach Pattern Definition and Action.
1) Above Stomach Pattern
•What is Above Stomach Pattern ?
The above stomach pattern is a two candlestick pattern which evolves over a period of two sessions. It requires a existing downtrend and usually appears at the bottom of a downtrend.
• Psychology Behind Above Stomach Pattern.
The first day of the pattern, bears are still in control as we have a confirmed downtrend. Second day, price opens higher above the mid of point of previous filled candle and also closes above the mid point .This clearly indicates that sentiments have changed completely and further buying will happen in coming sessions.
• How to Trade Below Stomach Pattern ?
- Decision :
In case of Above stomach pattern,traders should start looking for buying opportunities, buy price should be around the close price of hollow candle after the filled candle.
- Stop loss :
What if the market reverse its direction after printing the above stomach pattern? The lowest low of the two candles making above stomach pattern will act as stop-loss in case that happen.
2) Below Stomach Pattern
• What Below Stomach Pattern ?
The below stomach pattern is a two candlestick pattern which evolves over a period of two sessions. It requires a existing uptrend and usually appears at the top of a uptrend.
• Psychology Behind Below Stomach Pattern
The first day of the pattern, bulls are still in control as we have a confirmed uptrend. Second day, price opens lower, below the mid of point of previous hollow candle and also closes below the midpoint .This clearly indicates that sentiments have changed completely and further selling will happen in coming sessions.
• How to Trade Below Stomach Pattern.
- Decision :
In case of Below stomach pattern,traders should start looking for selling opportunities, sell price should be around the close price of filled candle after the hollow candle.
- Stop loss :
What if the market reverse its direction after printing the below stomach pattern? The highest high of the two candles making below stomach pattern will act as stop-loss in case that happen.
• Main Points to Consider
• If it appears at support/resistance , it will make for high probability setup.
• Pattern with large body works better compared to the pattern with short bodies.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.