Tips and Tools for Future Market Trading and Investment TECHNICAL ANALYSIS DCX Nepal Derivative and Commodity Exchange Nepal Ltd.

JAPANESE CANDLESTICK CHART  Japanese Candlestick charting and analysis is one of the most effective technical methodologies in the universe of technical analysis. Japanese Candlestick analysis is a highly effective, but under-used investment decision-making technique. Most people in the Nepali investment community are unaware of Candlestick analysis, and few understand how or why it actually works. Candlestick charts reveal many insights using well-recognized Japanese candlestick formations, yet few people understand the ramifications or significance of the signals that are clearly and reliably displayed.  Popularized by Sokuta Honma, Japanese Rice Trader during mid 1700s  Developed over 400-year period  Steve Nison is credited with introducing them into the U S markets  There are over 100 Candlestick patterns 2

3 1. Bullish: When the close is higher than the open (usually green or white) 2. Bearish: When the close is lower than the open (usually red or black)

Long Day & Short Day 4

Marubozus 5 Black MarubozuWhite MarubozuOpening MarubozuClosing Marubozu In Japanese, Marubozu means close-cropped or close-cut. Bald or Shaven Head is more commonly used in Candlestick analysis. Its meaning reflects the fact that there are no shadows extending from either end of the body.

Spinning Top and Doji 6 Spinning Top Doji

Bearish Engulfing Pattern 7 How to Identify it ? Candle 1 is a bearish candle Candle 2 completely engulfs the body of the candle 1 Stock in a downtrend or consolidating Pattern suggests downtrend has lost momentum and the bulls may be gaining strength Confirmation is suggested

Bullish Engulfing Pattern 8

Bearish Engulfing Pattern 9

10

11 The Doji is a powerful Candlestick formation, signifying indecision between bulls and bears. A Doji is quite often found at the bottom and top of trends and thus is considered as a sign of possible reversal of price direction, but the Doji can be viewed as a continuation pattern as well.

12

13

14

15

16

17

18

19

20

Kicker Pattern 21 Bullish Kicker Pattern Bearish Kicker Pattern

Inverted Hammer and Shooting Star 22

23

24

Fibonacci Retracement Fibonacci retracementFibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century.numbers

Questions and Answers Open Discussion

Contact Details Welcome to the financial world Derivative and Commodity Exchange Nepal Ltd. Mid Baneshwor, Kathmandu Phone: /

DCX Nepal Your Trading Bank Happy Hunting !!!!!!!!! Happy Trade !!!!!!!!!

Thank You !!! Investment Test (Should appear circular) 16x9 4x3 If you can see it, You can Do it