Candle analysis is one of the oldest and most effective ways to read the market. In 2025, it still provides clear signals, especially when combined with volumes and levels. Here are three of the most reliable patterns:
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1. Engulfing Candle 🔥 ➡️ Consists of two candles: a small one (first day) and a large one in the opposite direction (second day). ➡️ Bullish engulfing — a signal for a reversal upward. ➡️ Bearish — a signal for a reversal downward.
Tip:
Works best at support/resistance levels.
Add volume: if the volume increases on an engulfing candle — the entry is solid.
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2. Pin Bar — the spike that decides everything 📌 ➡️ A candle with a long tail and a small body. ➡️ Indicates price rejection from a level — a reversal signal.
Lifehack:
Pin Bar at a level + confirmation from RSI = entry with minimal risk.
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3. Doji — the market is thinking 🤔 ➡️ A candle where the open ≈ close. ➡️ Indicates indecision and a possible trend change.
How to use:
Wait for an additional signal after a doji: the next candle must confirm the direction.
Works well on daily timeframes!
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Combo: Pin Bar + level + volume = stellar entry Engulfing + trend + confirmation = rocket into position
Candles are not magic; they are a reaction of the crowd. Read, understand, and enter on time 📈
Write “+” if you want a checklist of all top patterns!