If youโre trading without understanding candlestick chartsโฆ you're not trading. You're guessing.
Candlestick patterns are the language of price action, and once you learn to read them, you'll enter trades with confidence โ not hope
๐ฅ What Is a Candlestick Chart?
Each candle shows 4 key data points over a set time frame (e.g., 1H, 4H, Daily):
Open โ Where the price started
Close โ Where the price ended
High โ The top wick = highest price
Low โ The bottom wick = lowest price
๐ฉ Green = Bullish (Price Closed Higher)
๐ฅ Red = Bearish (Price Closed Lower)
๐ง Why Candlestick Patterns Matter
These patterns reveal trader psychology: fear, greed, hesitation, aggression.
Reading candles helps you:
โ
Anticipate reversals
โ
Avoid traps and fakeouts
โ
Enter at smarter levels
โ
Boost your win rate
๐ 6 Must-Know Candlestick Patterns
1. Doji โ Indecision Zone
Small body, equal open and close
Signals market uncertainty
Wait for next candle to confirm direction
2. Hammer โ Bullish Reversal Signal
Appears at the bottom of a downtrend
Long lower wick, small body
Buyers are fighting back
3. Shooting Star โ Bearish Reversal Signal
Found at the top of uptrends
Long upper wick, small body
Bulls losing steam
4. Engulfing Pattern โ Momentum Shift
Bullish: Green candle engulfs previous red
Bearish: Red candle engulfs previous green
Strong reversal signal โ especially on 4H/D charts
5. Morning Star โ 3-Candle Bullish Pattern
Big red โ Doji/small candle โ Big green
Found at the bottom of a trend
Buyers regain control
6. Evening Star โ 3-Candle Bearish Pattern
Big green โ Small candle โ Big red
Found at the top โ warns of selling pressure
โ
Pro Tips to Trade Candles Like a Pro
Pair with support/resistance: Candles near key zones = stronger signals
Use higher timeframes: Daily and 4H > 5-min noise
Confirm with indicators: Volume, RSI, or MACD for added confidence
Avoid trading on pattern alone: Always assess context and trend
๐ Final Thoughts
Candlestick patterns wonโt predict every move โ but theyโll protect you from blind trading.
They reveal what the market feels before the move even happens.
๐ฏ The difference between a losing trader and a consistent one?
They see what others miss โ and it starts with candles.
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