A spinning top is a candle with a small body and upper and lower wicks of roughly similar length. It shows indecision: buyers and sellers both pushed the price during the session, but neither managed to win by the close. The colour does not matter much. What matters is the small body relative to the […]
What is a marubozu candle?
A marubozu is a candle with a long body and little or no wick on either side. It shows that one side, buyers or sellers, controlled the price from the opening bell to the close. In a bullish marubozu, the open is the low and the close is the high. In a bearish marubozu, the […]
What is a shooting star candlestick?
A shooting star is a bearish reversal candle with a small body near the bottom and a long upper wick, usually at least twice the body’s length. It appears after a rally and shows that buyers pushed prices up but could not hold them. During the session, the stock rises sharply, attracting late buyers. Then […]
What is a hammer candlestick?
A hammer is a single-candle bullish reversal pattern with a small body near the top and a long lower wick, at least twice the length of the body. It appears after a fall and shows that buyers rejected lower prices during the session. Here is what happened inside that candle. Sellers pushed the price well […]
What is the passing score in NISM exams?
The passing score depends on the module. For NISM Series VIII (Equity Derivatives), it is 60%. Other modules set their own pass marks, listed in each module’s workbook and on the NISM portal. Since many NISM exams also have negative marking, the effective target is higher than it looks. In Series VIII, with 25% negative […]
What are two-candle patterns in trading?
Two-candle patterns are candlestick setups formed by two consecutive candles, where the second candle’s relationship with the first hints at a possible reversal or continuation. They are quicker to form than three-candle patterns but need more confirmation. The most widely used ones are: Here is an example. After a fall, a hypothetical stock forms a […]
What is the evening star candlestick pattern?
The evening star is a three-candle bearish reversal pattern that forms after an uptrend. It signals that buying momentum is weakening and sellers could be taking over. It is the mirror image of the morning star. First comes a long green candle, extending the rally. Next is a small-bodied candle, often gapping slightly higher, showing […]
What is the morning star candlestick pattern?
The morning star is a three-candle bullish reversal pattern that appears after a downtrend. It suggests that selling pressure is fading and buyers may be taking control. Here is a hypothetical example. A stock drops from ₹600 to ₹520 over two weeks. Day one is a long red candle closing at ₹520. Day two forms […]
How do I read a candlestick?
Read a candlestick by checking four things: its colour, the size of its body, the length of its wicks, and where it appears in the trend. Together they tell you who controlled that period, buyers or sellers, and how strongly. Take a hypothetical example. Nifty futures fall for five days, then form a candle with […]