Scribd
Upload
72 views3 pages

NUST Business School: Sir Nabeel Safdar Mahrukh Chohan

This document analyzes candlestick patterns in the euro-dollar exchange rate for 2019, including three patterns: 1. A spinning top on February 21st signaled potential price reversal. 2. Three black crows from March 3rd to 5th predicted the continuation of a downtrend. 3. Three white soldiers from March 11th to 13th indicated a reversal from downtrend to uptrend with strong buying pressure.

Uploaded by

mahrukh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
72 views3 pages

NUST Business School: Sir Nabeel Safdar Mahrukh Chohan

This document analyzes candlestick patterns in the euro-dollar exchange rate for 2019, including three patterns: 1. A spinning top on February 21st signaled potential price reversal. 2. Three black crows from March 3rd to 5th predicted the continuation of a downtrend. 3. Three white soldiers from March 11th to 13th indicated a reversal from downtrend to uptrend with strong buying pressure.

Uploaded by

mahrukh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

NUST Business School

FIN-329 Behavioral Finance


Assignment# 3

Submitted to:
Sir Nabeel Safdar
Submitted by:
Mahrukh Chohan

Bs. AcF 2K16-A

Date: April 18th, 2019.


Candlesticks charts are type of a financial chart that can be used to track the movement of
securities. Numerous candlestick patterns can be identified in the euro-dollar exchange rate
for the current year. Three of them are mentioned below:
Spinning Top:
It forms after a run-up or a run-down in the market and can be an indication of a reversal.
Indecision in the market is a representative of the buyers losing momentum when this occurs
after an uptrend and the sellers losing momentum after a downtrend.
A bearish spinning top was seen on the 21 st of February, it shows that neither buyers nor
sellers got the upper hand. Buyers pushed prices up while sellers pushed prices down, in the
end the closing price ended up very close to then open. Spinning tops signaled potential price
reversal. A spinning top that occurs at the top of an uptrend could be a sign that bulls are
losing their control and the trend may reverse. Similarly, a spinning top at the bottom of
a downtrend could signal that bears are losing control and bulls are leading
EUR/USD

.
Three Black Crows:
They indicate a bearish candlestick pattern that predicts the reversal of an uptrend. The black
crow pattern consists of three consecutive long-bodied candlesticks that have opened within
the real body of the previous candle and closed lower than the previous candle. Often, traders
use this indicator in conjunction with other technical indicators or chart patterns as
confirmation of a reversal.

Three Black Crows were seen on the 3 rd 4th and 5th of March, a bearish pattern predicting that
the pattern will continue to even lower the lows causing broader scale downtrend. A typical
appearance of Three Black Crows shows that the bulls will start thee session with price
starting slightly higher than previous close, but the price is pushed lower throughout the
session. In the end the price closes near session low due pressure created by bears.

Three White Soldiers:

Three white soldiers are a bullish candlestick pattern that is used to predict the reversal of the
current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied
candlesticks that open within the previous candle's real body and a close that exceeds the
previous candle's high. These candlesticks should not have very long shadows and ideally
open within the real body of the preceding candle in the pattern.

Three white soldiers were seen on the 11th 12th and the 13th of March, observed after a period
of downtrend, the pattern showed steady advance of buying pressure, investors exercised
caution as they attracted short sellers, pushing price of stock further down. The pattern
indicated a strong change in market sentiment, when a candle was closing with small or no
shadows, it suggested that the bulls have managed to keep the price at the top of the range
during the session. Bulls take over the rally all session and close near the high of the day for
three consecutive sessions.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy