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Candlestick Charting Analysis

Introduction
Candlestick charts have been around for hundreds of years. They are often
referred to as "Japanese candles" because the Japanese would use them to analyze the
price of rice contracts. Similar to a bar chart, candlestick charts also display the open,
close, daily high and daily low. The difference is the use of color to show if the stock
went up or down over the day.
Art of Candlestick Charting
The candlestick techniques we use today originated in the style of technical
charting used by the Japanese for over 100 years before the West developed the bar
and point-and figure analysis systems. In the 1700s a Japanese man named Homma, a
trader in the futures market, discovered that, although there was a link between price
and the supply and demand of rice, the markets were strongly influenced by the
emotions of the traders. He understood that when emotions played into the equation a
vast difference between the value and the price of rice occurred. This difference
between the value and the price is as applicable to stocks today as it was to rice in
Japan centuries ago. The principles established by Homma are the basis for the
candlestick chart analysis, which is used to measure market emotions towards a stock.
This charting technique has become very popular among traders. One reason
is that the charts reflect only short-term outlooks--sometimes lasting less than eight to
10 trading sessions. Candlestick charting is a very complex and sometimes difficult
system to understand.

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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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Investors seem to have a "love/hate" relationship with candlestick charts.

People either love them and use them frequently or they are completely turned off by
them. There are several patterns to look for with candlestick charts - here are a few of
the popular ones and what they mean.

This is a bullish pattern - the stock opened at (or near) its low and
closed near its high.

The opposite of the pattern above, this is a bearish pattern. It indicates

that the stock opened at (or near) its high and dropped substantially to
close near its low.

Known as "the hammer", this is a bullish pattern only if it occurs after

the stock price has dropped for several days. A hammer is identified by
a small body along with a large range. The theory is that this pattern
can indicate that a reversal in the downtrend is in the works.

Known as a "star", this pattern is used in other patterns such as the

"doji star". For the most part, stars typically indicate a reversal and or
indecision. There is a possibility that after seeing a star there will be a
reversal or change in the current trend.

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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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Chart Created with Trade station

Patterns on the Bullish and Bearish Sides

In the world of Japanese candlesticks, there are a number of bullish and
bearish continuation patterns. With a short list on the bullish side of the market, a
chartist would look for the following patterns: 'mat hold', 'rising three methods',
'separating three lines', 'side-by-side white lines', 'upside gap three methods', and
'upside Tasuki gap'. This article focuses on 'rising three methods', 'mat hold' and
'separating three lines'. With a short list on the bearish side of the market, one would
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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.

In a bullish market, this pattern is simply viewed as a continuation of the

trend because the second day starts off from where day one left off and continues the
trading session to close higher still. Now, on the bearish side of the equation, let's
have a look at what the bears are looking for, starting with separating lines.

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Separating Lines (Bearish)

You can see immediately that the bearish separating lines pattern is the exact
opposite of the bullish separating lines pattern, so it does not need any further
explanation.

Falling Three Methods (Bearish)

The pattern known as bearish falling three methods confuse many chartists at first. It
is not until the third or fourth day of the pattern that it becomes clear.

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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Engulfing Pattern - Bullish

Engulfing pattern on the bullish side of the market is the opposite of the
previous pattern and takes place when the buyers outpace the sellers, which is
reflected in the chart by a long green real body engulfing a small red real body.

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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Island Reversal Patterns

Island reversals are strong short-term trend reversal indicators. They are
identified by a gap between a reversal candlestick and two candles on either side of it.
Here are two examples that occurred on the chart of Doral Financial (DRL).

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

3-10-06 to 14-11-06 to 5-12-06

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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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Study of Commodity Metal Market to Assess Price Risk

3-10-06 to 14-11-06 to 5-12-06

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

(Contract Expiry month 30-11-06)

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

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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

1-09-06 to 14 -10-06 to 30-11-06

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
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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.

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