Trading using candlestick pattern is old technical analysis method originated from Japan. It generally shows the psychology of the trader and we can guess accurate trend using it. Below are Most Accurate Candlestick Pattern Intraday Trading. I use them most of the time.
I will not go into much detail of how these candles are formed as this is not the purpose of the article.
1. Double Top
This is ‘M’ like pattern formed in the chart and its very powerful candlestick pattern to guess the reversal of the trend. You can take short position when price breaks the support level (blue line in the chart below). You will get more accuracy with this pattern in higher time frame like 30min or 1 hr. If you are day trading then you can choose 15min timeframe.
Check the pattern below and also Sell signal.
2. Double Bottom
This is ‘W’ like pattern. You can go long when the price breaks resistance level. This pattern gives good result if you use it with MACD indicator and it will also reduce false signal. Buy only when MACD crossover and price crosses resistance level simultaneously.
Check below chart for double bottom signal.
3. Engulfing Pattern:
Bullish and Bearish engulfing patterns are another accurate candlestick pattern intraday trading. Bullish engulfing pattern formed when bearish candle stick is engulfed by bullish candle and it shows buyers are more in number than sellers. Bearish engulfing is formed when bullish candle is engulfed by bearing candle. These pattern is known for trend reversal signal.
Below chart shows both Bullish and Bearish engulfing candlestick pattern.
4. Three White Soldiers
These pattern generally formed after continuous downtrend and it shows stock has revered the trend and will go up. In this pattern low of the top candle is higher than the high of previous candles. (Higher-High Formation). This shows the stock is in demand and people are buying it. I have used this pattern with 1D timeframe and it gave me really fascinating returns.
5. Evening Star Pattern:
Evening Star pattern occurs at the end of uptrend and is sign of downtrend. This pattern consists of Bullish candlestick, indecisive and bearish candlestick. Stock prices are likely to fall down after this pattern as bearish candle confirms the sellers are more than the buyers.
Hope you have liked this article on Most Accurate Candlestick Pattern Intraday Trading.
You can also check article on 5 Most Accurate Intraday Trading Indicator.