K.Karthik Raja - Financial Literacy Activist
K.Karthik Raja - Financial Literacy Activist
MCX Launches Gold Global Futures Contract : 14.07.2015
MCX Launches Gold Global Futures Contract MCX Gold Global contract to be traded from July 14, 2015 International price based contract exclusive of local factors Mumbai, July 13, 2015: Further expanding its bullion product suite, India’s No. 1 commodity exchange, Multi Commodity Exchange of India Ltd. (MCX) today announced the launch of its unique and innovative futures contract, GOLD GLOBAL, subsequent to receiving permission from the Forward Markets Commission (FMC). This contract will be available for trade on the Exchange from Tuesday, July 14, 2015. Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. The contract has been designed keeping in mind the requirements of refiners, exporters, jewellers, including larger bullion physical market participants, involved in import of gold bars and re-export of jewellery. These stakeholders having significant exposure to international gold prices, need to effectively hedge against any adverse movement in prices. The existing Gold futures contracts traded on MCX have been providing an efficient hedging mechanism to the market participants exposed to changes in Gold landed prices, which mirrors the Indian spot market perfectly. However, a category of physical participants including Indian refiners, exporters, and jewellers are looking for contracts with less international basis risk and protection against adverse international price movements and this contract will cater to their needs perfectly. The Gold Global contract will be settled based on international prices converted to Indian Rupee based on RBI Reference Rate on the date of expiry, and will have ‘both option’ delivery logic thus offering an inbuilt rupee hedge to the participants. The participants will also get a margin benefit of up to 75 per cent if they trade in spreads between Gold Global and other gold contracts at MCX. Speaking on the occasion, Mr. P. K. Singhal, Joint Managing Director, MCX said, “While the existing gold contracts on the Exchange are already an established benchmark of price and quality in the Indian bullion markets, we seized the opportunity to further entrench our position in this market by launching the Gold Global contract. With its launch, MCX’s bullion basket offerings will include one more variant i.e. Gold Global (200 grams) apart from the existing Gold (1 Kg), Gold Mini (100 grams), Gold Guinea (8 grams), and Gold Petal (1 gram), thus enabling us to meet the needs of most stakeholders of the bullion value chain.” “The Gold Global contract would facilitate hedging by all stakeholders in India’s gold value chain, and therefore is a step towards making India’s gold market more competitive. Separately, it will also reduce dabba trading, which is rampant especially in the Indian bullion futures market,” he added. Key highlights of GOLD GLOBAL contract specifications, appended below: Specifications Parameters Ticker Symbol GOLDGLOBAL Contract Start Day 1st day of contract launch month. If 1st day is a holiday then the following working day Last Trading Day As per the Contract Launch Calendar Trading Trading Session Monday to Friday : 10.00 a.m. to 11.30 / 11.55 p.m. Trading Unit 200 grams Quotation/Base value 10 Grams Price Quote Ex-Ahmedabad (exclusive of all taxes relating to import duty, sales tax/VAT/Octroi as the case may be, and other charges/levies) Tick Size Rs. 1 per 10 grams Initial Margin Minimum 5% or based on SPAN whichever is higher Delivery Quality specification 995 purity It should be serially numbered Gold bars supplied by LBMA approved suppliers or other suppliers as may be approved by MCX to be submitted along with supplier’s quality certificate. Due Date Rate The DDR Price will be calculated on the expiry date based on the International price on that day at RBI reference rate. The USD price of Gold (995 purity) in troy ounce will be multiplied by 0.321507425 to get corresponding price in USD per 10 grams. This will be multiplied by RBI reference rate on that day of expiry to get price in INR per 10 grams and will be rounded to the nearest Rupee. Delivery Logic Both Option About MCX: Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various international exchanges, as well as Indian and international trade associations. For further details, contact: Shivani Sharma Manager - Communications Mobile: +91 9833376243 shivani.sharma@mcxindia.com
MCX GOLD GLOBAL LAUNCHED TODAY : 14.07.2015
Basic details of GOLD GLOBAL contract at MCX :
Lot size: 200 grams.
Tick size: Re 1 /10 gram.
Profit /loss per 1 Re = Rs 20.
Contract size: 475000 /-approx.
Margin required: 23500 approx.
Conversion factor: 0.321507425.
Expiry: Bi monthly as per International market.
Spread margin benefitsnly 25% of total margins is levied.
DDR: International prices *RBI reference rate *0.321507425.
Delivery logic: Both option .
bsk_research: Benefits of MCX Gold Global contract:
1. Arbitrage between Gold and Gold Global.
2. Lower contract value means lower CTT (10% saving on CTT)
3. NO impact of local taxes and custom duty change.
4. Easy to understand (simple multiplication of international prices into INR).
5. No need to go for separate Rupee hedge.
6. Spread margin benefits in different liquid GOLD contracts of MCX
Technical Analysis Training : What is White Marubozu: Bullish Reversal/Continuation Pattern?
Technical Analysis Training :
What is White Marubozu: Bullish Reversal/Continuation Pattern?
White Marubozu is a bullish reversal/continuation pattern. It is a large white candlestick with no wicks on either end. It is considered to be an extremely bullish candle. The candle can lead to a continuation of the current uptrend or start of a bearish reversal.
This candle often occurs with high volume. So it becomes very crucial to determine whether it is a continuation or reversal.
What is White Marubozu: Bullish Reversal/Continuation Pattern?
White Marubozu is a bullish reversal/continuation pattern. It is a large white candlestick with no wicks on either end. It is considered to be an extremely bullish candle. The candle can lead to a continuation of the current uptrend or start of a bearish reversal.
This candle often occurs with high volume. So it becomes very crucial to determine whether it is a continuation or reversal.
Technical Analysis Training : What is Upside Tasuki Gap: Bullish Continuation Pattern?
Technical Analysis Training :
What is Upside Tasuki Gap: Bullish Continuation Pattern?
Upside Tasuki Gap is a bullish continuation pattern. Its a three day pattern. In this, a white candle gaps above the previous white candle. Third candle is a black candle, which opens inside the body of second candle.
Strategy: As its a bullish continuation pattern, one should trade in the preceding direction of the pattern. One can go long on the close of third candle.
What is Upside Tasuki Gap: Bullish Continuation Pattern?
Upside Tasuki Gap is a bullish continuation pattern. Its a three day pattern. In this, a white candle gaps above the previous white candle. Third candle is a black candle, which opens inside the body of second candle.
Strategy: As its a bullish continuation pattern, one should trade in the preceding direction of the pattern. One can go long on the close of third candle.
Technical Analysis Training : What is Two Crows: Bearish Reversal Pattern?
Technical Analysis Training :
What is Two Crows: Bearish Reversal Pattern?
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.
In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.
Strategy: Short positions can be initiated post successful breaking of low of third candle.
What is Two Crows: Bearish Reversal Pattern?
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.
In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.
Strategy: Short positions can be initiated post successful breaking of low of third candle.
Technical Analysis Training : What is Tri-Star Bottom, Tri-Star Top?
Technical Analysis Training :
What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
Technical Analysis Training : What is Three White Soldiers: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three White Soldiers: Bullish Reversal Pattern?
Three White Soldiers is a bullish reversal pattern and is opposite of three black crows. This pattern consists of three large consecutive white candles with close at or near their high levels. If the first candle appears at previous support level, then there may be more strength and gains.
It is good to trade the stock once third candle appears. The first two candles often provide support on pullbacks.
This pattern should be confirmed with previous support and resistance.
What is Three White Soldiers: Bullish Reversal Pattern?
Three White Soldiers is a bullish reversal pattern and is opposite of three black crows. This pattern consists of three large consecutive white candles with close at or near their high levels. If the first candle appears at previous support level, then there may be more strength and gains.
It is good to trade the stock once third candle appears. The first two candles often provide support on pullbacks.
This pattern should be confirmed with previous support and resistance.
Technical Analysis Training : What is Three Stars in the South: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three Stars in the South: Bullish Reversal Pattern?
Three stars in the South is a bullish reversal pattern. This pattern is seen near the end of the downtrend and consists of 3 candles. It shows deteriorating of selling pressure. In this pattern, first candle is a large black candle, having small or no upper shadow, but has a long lower shadow. Second candle is a smaller replica of previous candle. It opens gap up but ends lower. Second candle get engulfed completely by the first candle. Third candle gets engulfed completely by the second candle and is a black marubozu.
Strategy: Long positions can be initiated after the high of second candle is broken on upside.
What is Three Stars in the South: Bullish Reversal Pattern?
Three stars in the South is a bullish reversal pattern. This pattern is seen near the end of the downtrend and consists of 3 candles. It shows deteriorating of selling pressure. In this pattern, first candle is a large black candle, having small or no upper shadow, but has a long lower shadow. Second candle is a smaller replica of previous candle. It opens gap up but ends lower. Second candle get engulfed completely by the first candle. Third candle gets engulfed completely by the second candle and is a black marubozu.
Strategy: Long positions can be initiated after the high of second candle is broken on upside.
Technical Analysis Training : What is Three Outside Up: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three Outside Up: Bullish Reversal Pattern?
Three Outside Up pattern is another name for confirmed Bullish Engulfing Pattern. It is a bullish reversal pattern. In this pattern, first candle is a small black candle, closing at its low. Second candle engulfs completely the previous candle and closes near its high, thus creating a lon, white candle. Third candle breaks the high of the second candle and closes even higher.
Strategy: The high of the third candle should be broken successfully, before initiating new long positions
What is Three Outside Up: Bullish Reversal Pattern?
Three Outside Up pattern is another name for confirmed Bullish Engulfing Pattern. It is a bullish reversal pattern. In this pattern, first candle is a small black candle, closing at its low. Second candle engulfs completely the previous candle and closes near its high, thus creating a lon, white candle. Third candle breaks the high of the second candle and closes even higher.
Strategy: The high of the third candle should be broken successfully, before initiating new long positions
Technical Analysis Training : What is Three Outside Down: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Outside Down: Bearish Reversal Pattern?
Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. It is a bearish reversal pattern. In this pattern, first candle is a small white candle, which closes near its high. Second candle is a long black candle, which completely engulfs the first candle, closes near its low, thus creating a bearish engulfing pattern. Third candle breaks the low of the second candle, and closes near its low.
Strategy: Short positions can be initiated once low of the third candlestick is broken
What is Three Outside Down: Bearish Reversal Pattern?
Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. It is a bearish reversal pattern. In this pattern, first candle is a small white candle, which closes near its high. Second candle is a long black candle, which completely engulfs the first candle, closes near its low, thus creating a bearish engulfing pattern. Third candle breaks the low of the second candle, and closes near its low.
Strategy: Short positions can be initiated once low of the third candlestick is broken
Technical Analysis Training : What is Three Inside Down: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Inside Down: Bearish Reversal Pattern?
The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. Its a bearish reversal pattern. In this pattern, first candle is a long white candle, which closes near its high. Second candle is a small black candle, which gaps away from the first candle and closes inside the body of the first candle, thus creating a harami pattern. Third candle exceeds the lows of the first two candles.
Strategy: Short positions can be created once the low of the third candle is broken successfully. Size of third candle often provides some indication to the strength of the reversal pattern.
What is Three Inside Down: Bearish Reversal Pattern?
The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. Its a bearish reversal pattern. In this pattern, first candle is a long white candle, which closes near its high. Second candle is a small black candle, which gaps away from the first candle and closes inside the body of the first candle, thus creating a harami pattern. Third candle exceeds the lows of the first two candles.
Strategy: Short positions can be created once the low of the third candle is broken successfully. Size of third candle often provides some indication to the strength of the reversal pattern.
Technical Analysis Training : What is Three Black Crows: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Black Crows: Bearish Reversal Pattern?
Three Black Crows is a bearish reversal pattern. The pattern is seen after an uptrend. It consists of three large, consecutive declining black candles. Criteria for this formation is that all the three candles should close near the lows and each candle should open within the prior candles' body. However, this has an exception when the first candle of this formation opens in a gap.
Traders should keep patience or wait for counter-trend rally before exiting long positions or entering into short position. Reason behind this is that the stock could have had a long pullback when the third candle forms. Hence, one should wait for a bounce before going short or exiting longs.
This pattern should be confirmed with previous support and resistance.
What is Three Black Crows: Bearish Reversal Pattern?
Three Black Crows is a bearish reversal pattern. The pattern is seen after an uptrend. It consists of three large, consecutive declining black candles. Criteria for this formation is that all the three candles should close near the lows and each candle should open within the prior candles' body. However, this has an exception when the first candle of this formation opens in a gap.
Traders should keep patience or wait for counter-trend rally before exiting long positions or entering into short position. Reason behind this is that the stock could have had a long pullback when the third candle forms. Hence, one should wait for a bounce before going short or exiting longs.
This pattern should be confirmed with previous support and resistance.
Technical Analysis Training : What is technical analysis?
Technical Analysis Training :
What is technical analysis?
Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index.
Therefore, technical analysis supports the efficient market theory as against the "random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation.
If fundamental analysis was the single most reliable indicator of trends, prices would predominantly fluctuate only 4 - 5 times a year - around quarterly results and special announcements like mergers and acquisitions etc!! Why would prices fluctuate almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes according to technical analysis!!
What is technical analysis?
Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index.
Therefore, technical analysis supports the efficient market theory as against the "random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation.
If fundamental analysis was the single most reliable indicator of trends, prices would predominantly fluctuate only 4 - 5 times a year - around quarterly results and special announcements like mergers and acquisitions etc!! Why would prices fluctuate almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes according to technical analysis!!
Technical Analysis Training : What is Shooting Star: Bearish Reversal Pattern?
Technical Analysis Training :
What is Shooting Star: Bearish Reversal Pattern?
Shooting Star is a bearish reversal pattern, appearing at market top. Its a small real body with long upper shadow and no lower shadow, which gaps away from the previous candle. This pattern appears in an uptrend. A white candle is seen on first day. Next day, gap up opening happens. This candle appears as a small real body, with upper shadow at least twice as long as the real body. It has no lower shadow.
The pattern indicates that the uptrend is near to an end. Colour of the real body is not important. Gap is not always necessary.
Strategy: A confirmation is required on next day to ensure that uptrend has reversed or closer to the reversal. This confirmation can be in the form of a black candle, a large gap down or a lower close on next trading day.
What is Shooting Star: Bearish Reversal Pattern?
Shooting Star is a bearish reversal pattern, appearing at market top. Its a small real body with long upper shadow and no lower shadow, which gaps away from the previous candle. This pattern appears in an uptrend. A white candle is seen on first day. Next day, gap up opening happens. This candle appears as a small real body, with upper shadow at least twice as long as the real body. It has no lower shadow.
The pattern indicates that the uptrend is near to an end. Colour of the real body is not important. Gap is not always necessary.
Strategy: A confirmation is required on next day to ensure that uptrend has reversed or closer to the reversal. This confirmation can be in the form of a black candle, a large gap down or a lower close on next trading day.
Technical Analysis Training : What is Relative Strength Comparative?
Technical Analysis Training :
What is Relative Strength Comparative?
Technical analysis offers a few wonderful tools with the help of which, we can check out the Relative Strength Comparative, RSC. As the name suggests, it is a comparative measure of strength vis-à-vis a benchmark or a share or a sector. The best way you can put the RSC to use before initiating a trade is to check out how your scrip has performed historically. It can be against the indices, it's peers in the same sector and or a separate asset class like say, commodities. To that effect, RSC helps in determining which scrip would be the most profitable investment.
Highly volatile scrips rise or fall faster than the indices, but may not make large net moves in any single direction. On the other hand, high RSC scrips will rise faster than the indices but fall slower than the indices in a downturn. To that extent, they are solid market outperformers and have unidirectional upward movement. Needless to say, buying scrips with the highest RSC reading among the available choice of stocks will ensure a greater probability of capital appreciation.
What is Relative Strength Comparative?
Technical analysis offers a few wonderful tools with the help of which, we can check out the Relative Strength Comparative, RSC. As the name suggests, it is a comparative measure of strength vis-à-vis a benchmark or a share or a sector. The best way you can put the RSC to use before initiating a trade is to check out how your scrip has performed historically. It can be against the indices, it's peers in the same sector and or a separate asset class like say, commodities. To that effect, RSC helps in determining which scrip would be the most profitable investment.
Highly volatile scrips rise or fall faster than the indices, but may not make large net moves in any single direction. On the other hand, high RSC scrips will rise faster than the indices but fall slower than the indices in a downturn. To that extent, they are solid market outperformers and have unidirectional upward movement. Needless to say, buying scrips with the highest RSC reading among the available choice of stocks will ensure a greater probability of capital appreciation.
Technical Analysis Training : What is Piercing Line: Bullish Reversal pattern?
Technical Analysis Training :
What is Piercing Line: Bullish Reversal pattern?
It is a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
Strategy: Traders should wait for the high of the first candlestick to be exceeded prior to taking a long position. Stoploss can be placed below the low of the first candlestick. The more the second candle closes above the mid-point of the first candlestick, the greater the odds of a successful pattern. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
What is Piercing Line: Bullish Reversal pattern?
It is a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
Strategy: Traders should wait for the high of the first candlestick to be exceeded prior to taking a long position. Stoploss can be placed below the low of the first candlestick. The more the second candle closes above the mid-point of the first candlestick, the greater the odds of a successful pattern. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
Technical Analysis Training : What is Opening Marubozu?
Technical Analysis Training :
What is Opening Marubozu?
Opening Marubozu has no shadow extending from the opening level. It means, if the stock ended up, there would be no lower shadow, and if the stock ended down, then there would be no upper shadow.
It is not a powerful signal like closing marubozu, as closing level is important than opening. It is important to confirm that the primary trend is in place. One should wait for the high or the low of the candle to be exceeded before initiating a position in the direction of Opening Marubozu.
White Opening Marubozu is a long white single candlestick, having an upper shadow, but no lower shadow. It is considered to be a strong bullish pattern.
Black Opening Marubozu is a long black single candlestick, having a lower shadow, but no upper shadow. It is considered to be a strong bearish pattern.
What is Opening Marubozu?
Opening Marubozu has no shadow extending from the opening level. It means, if the stock ended up, there would be no lower shadow, and if the stock ended down, then there would be no upper shadow.
It is not a powerful signal like closing marubozu, as closing level is important than opening. It is important to confirm that the primary trend is in place. One should wait for the high or the low of the candle to be exceeded before initiating a position in the direction of Opening Marubozu.
White Opening Marubozu is a long white single candlestick, having an upper shadow, but no lower shadow. It is considered to be a strong bullish pattern.
Black Opening Marubozu is a long black single candlestick, having a lower shadow, but no upper shadow. It is considered to be a strong bearish pattern.
Technical Analysis Training : What is One White Soldier: Bullish Reversal Pattern?
Technical Analysis Training :
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
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