Reversal Candle Stick Patterns

Our Intraday Index options strategy for holding the trade to get maximum
points is little complicated and tough for newbies to understand So I

recommend you to follow scalping system at starting then step by step
you can understand the concept for holding strategy
Holding system is nothing but the extension of the scalping trade when
OI Data, Moving Averages & repeating patterns favouring the same
direction.
Holding system requires atleast 1 month live observation of the market

behaviour before executing a trade.
1. Reversal Candle Stick patterns
2. Trading Zones
a) Basic SNR b)TrendLine c) Fibonacci Retracement Zones
3. Indicators
REVERSAL CANDLE STICK PATTERNS

Based on reversal Candle formation at important price zones we can

take a Trade & fix Stoploss.
Hammer:
If a Candle has wick on one side with double the times of its body is
called hammer.Depending on its formation at different trend it is called
by different names despite of the candle colour
We gonna consider only the Shooting Star at Up trend & Hammer during
downtrend.Refer below image
Doji & Spinning Top or Bottom:
Both are same but the names differs from their candle appearance if the
body of the candle and the Wick looks like PLUS + Symbol then it is
called Doji.
Doji with bigger body & wick is called

Spinning top or bottom,So consider
everything as Doji.
Tweezer
It always consists of two candlesticks with same low or same high
The Tweezer Top formation is viewed as a bearish reversal pattern seen
at the top of uptrends and the Tweezer Bottom formation is viewed as a
bullish reversal pattern seen at the bottom of downtrends.
Tweezer Bottoms will

have same low
"Tweezer Top will have Same High & Tweezer
Bottom will have same low"
When the above mentioned candlesticks formed at the important trading
zones like TrendLine, Support & resistance, Fibbonachi Retracement
then we can take trade and fix StopLoss.
Important Rules:
1.Time frame - 5 minutes.
2.Candle closing is more important.
OJI
D
For Taking Long For Taking Short
Wait for next 5mins candle closing and give trade entry at 3rd candle
opening itself.
1. Candle Closing is more important
2. Colour of the Doji doesn't matter
Hammer
Similar to DOJI Trading Rule and in this case as per our system we
gonna consider only shooting star at uptrend & hammer at downtrend.
Important Rules:
1.Candle Closing is more important

2.Colour & Size of body does not matter
For Taking Short
For Taking Long
Tweezer
Tweezer is a combination of two candles it may be DOJI,Hammer or

Engulfing Candle
For Taking Short
Case 1
Case-2
If Second candle fails to close below 1st candle low then we must wait
for the 3rd candle to close below the 1st low.
Closing is more important

Case 3
In this case Both 1st & 2nd Candles closes at same level,In that cases wait for 3rd
Candel to close below 1st low same as case 1
For Taking Long
Same conditions vise versa for Taking Long Trades
Above all mentioned candlesticks patterns are the reversal candlesticks

patterns indicating a reversal, when this patterns forms at TrendLine,
Fibonacci Retracement , Support & Resistance Zones 80% of times
market will reverse So by using this opportunity we can do Scalping
trade in Options for 20 to 30 points in Bank & 10 to 20 Points in Nifty.
For getting 100+ Points we need to observe the market atleast 1 month
to understand the characteristics of OI Data & Moving averages because
only then we will get confident for holding the Scalping trade.
2.Trading at the Zones

Above mentioned Reversal CandleStick patterns will form many times in
a trading day but all those won't be successfull and leave traps
So we gonna trade only if those reversal patterns forms in the following

Important zones.
1. TrendLine
2. Fibonacci Retracements
3. Support & Resistance
In above 3 zones TrendLine & Fibbonachi Retracement Zones are more

important(38%,50% & 61%)
Fibonacci Retracement is Just a tool available in all platforms
Use Case:
If the trending market is continuously going up or down there will be a
minor pull back before going further up or down, By plotting Fibonacci
Retracement during those pull back we can find the levels from which
the market will reverse 38% & 50% are important levels rare case 61%
Reversal Pattern will respect 80% of times in these zones. Out of 10

trades 8 Trades will be successfull giving 10 to 20 points in Nifty & 20 to
30 points in Bank Nifty Options ( In futures ×2)
In that 8 Scalping trades atleast 3 will be holding trades (minimum 50+

Points in Nifty & 100+ Points in BankNifty)
For scalping Trades Risk reward will be 1:1 & for holding reward will be
minimum 3+ times
Note:- All Points above mentioned are in Weekly Options,Whole

strategy is suitable only for Options trading because futures trading is
not profitable for scalping as there are huge brokerage & Taxes.
Search in YouTube for learning about TrendLine & Fibonacci
Retracement
Indicators
Reason for adding Indicators is to filter out failure trades so that we can
reduce loss and increase our success ratio
1.Money Flow Index (MFI)

2.Moving Averages
3.Open Interest (Options OI)
Money Flow Index (MFI) :
Settings
Time Frame = 5mins
Type = Exponential -6
Over Bought = 90
Over Sold = 10
MFI is an Indicator that uses price & volume for identifying overbought or
oversold conditions in an asset.
Above 90 means Over Bought

Below 10 means Over Sold
When a reversal Pattern forms in an Uptrend & MFI also above 90+ then
we can take short
If a reversal Pattern forms in a downtrend & MFI also below 10 then we
can take long.
Moving Averages & OI Data are the main indicators which will help us to
hold those Scalping trades bcz OI will indicates the trend in advance and
moving averages cross over will give extra support for holding the trades
It need atleast 1 month live market observation to understand it's

characteristics. Understanding these two indicators are really
complicated and need to give little work for our brain
So I will be posting my OI analysis daily in live market at different market

conditions follow our channel to under stand the OI characteristics
behaviour.
Contact
Only in Telegram
User Id- t.me/rubykumar or @rubykumar
Join my channel. - t.me/walletoptions

For OI calculator - t .me/oicalculator

Reversal Candle Stick Patterns

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What are some candlestick patterns discussed?

What are some candlestick patterns discussed?

What are the important zones to watch for reversal patterns?

What are the important zones to watch for reversal patterns?

Our Intraday Index options strategy for holding the trade to get maximum

points is little complicated and tough for newbies to understand So I

Holding system requires atleast 1 month live observation of the market

1. Reversal Candle Stick patterns

REVERSAL CANDLE STICK PATTERNS

Based on reversal Candle formation at important price zones we can

Doji with bigger body & wick is called

Tweezer Bottoms will

​For Taking Long​ ​For Taking Short

1.Candle Closing is more important

Tweezer is a combination of two candles it may be DOJI,Hammer or

Closing is more important

Same conditions vise versa for Taking Long Trades

Above all mentioned candlesticks patterns are the reversal candlesticks

2.Trading at the Zones

So we gonna trade only if those reversal patterns forms in the following

In above 3 zones TrendLine & Fibbonachi Retracement Zones are more

Fibonacci Retracement is Just a tool available in all platforms

Reversal Pattern will respect 80% of times in these zones. Out of 10

In that 8 Scalping trades atleast 3 will be holding trades (minimum 50+

Note:- ​All Points above mentioned are in Weekly Options,Whole

1.Money Flow Index (MFI)

Money Flow Index (MFI)​ :

Above 90 means Over Bought

It need atleast 1 month live market observation to understand it's

So I will be posting my OI analysis daily in live market at different market

Join my channel. - ​t.me/walletoptions

You might also like

For Taking Long For Taking Short

Note:- All Points above mentioned are in Weekly Options,Whole

Money Flow Index (MFI) :

Join my channel. - t.me/walletoptions