in the above white circled image which type of candlestick pattern is formed ???
there is no name for it, but I find this kind of candlestick even more bullish than piercing pattern, because there is a gap up opening and close over previous candlestick. I think this is not a popular pattern, but it should be
You can call it bullish engulfing.
I don’t think so @ulhas bcoz it does not engulf completely
@Ashish_Ahuja ideally for piercing type the close should be near the midpoint of the previous candle
yes the candle definitely shows bullishness but I guess there must be some name to this type, it had an open gap up with close above previous candles high
@bansode933 I couldn’t find the name of the pattern, but think of the market participants, thats how all the candles are formed based on psychology of the participants. The shorts are thinking, oh shit, gap up opening and close above previous open, need to run for cover, longs are thinking, wow, gap up opening and it closed above previous open, lets buy. The people who are on sideline and were happy that last candle was red are now thinking, shit I missed the opportunity to buy, lets buy now before price increases more.