Day 2: Candlestick Patterns
Candle? On a Chart?
Is This a Birthday Party?
No bro, not that candle.
Weâre talking about candlestick patterns â those little red and green bars on a chart that look innocentâŚ
But actually hold the secret to the marketâs next move.
Each candlestick is like a mini soap opera. It tells you:
How high the price wentHow low it droppedWhere it startedAnd where it ended
In short: A candle shows the marketâs emotional drama in one tiny box.
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1. Whatâs Inside a Candlestick?
Body: The fat part. Shows where the price opened and closed.
Wick (or Shadow): The skinny stick part. Shows the high and low.
Color:
Green candle = Price went up (Yay!)
Red candle = Price went down (OofâŚ)
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2. The Candlestick Gang â Most Wanted Patterns
Here come the top candle patterns you MUST know (or stay broke forever):
a) Doji â The Confused Candle
Price opened and closed at the same level.
Market said, âUhh... I donât know what to do.â
Example: Like opening the fridge, staring for 5 minutes, and closing it without taking anything.
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b) Hammer â The Reversal King
Long wick below, tiny body on top.
Appears after a downtrend. Bulls punching back!
Imagine:
Market: âIâm falling!â
Hammer: âNot today, Satan.â
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c) Shooting Star â The Price Faker
Big wick on top, small body below.
Appears after price goes up â but warning: sellers are back!
Itâs like: Your crush says âI miss youâ and then ignores your text for 3 days.
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d) Bullish Engulfing
Big green candle eats the tiny red one before it.
Signals a strong reversal â bulls just bullied the bears.
Relatable?
Your $5 trade turns into $50 and suddenly you act like Warren Buffett.
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e) Bearish Engulfing
Big red candle swallows the green one.
Bears came with steel chairs. Get out fast!
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Valuable Questions and Simple Answers
Q: Sir, can I trade using only candles?
A: Technically yes, but thatâs like trying to cook biryani with just salt. You need more ingredients (like support/resistance, MACD, etc.).
Q: How many candles do I need to confirm a pattern?
A: Donât trust one candle like you donât trust one red flag. Look for 2â3 candles + confirmation with trend.
Q: Which time frame is best?
A: 15-min and above for pattern clarity. Avoid 1-min candles unless you like high blood pressure.
Q: Are all Dojis important?
A: Only in the right place. A Doji at resistance is a whisper of reversal. A Doji in the middle of nowhere is just bored.
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The Candlestick Story
Letâs say you see a Hammer candle after 5 red candles.
Itâs like:
Price: âI give up, Iâm crashing!âHammer: âHold my wick.âMarket: bounces up 10%
But if you enter late, youâll end up buying the top and crying with a red candle.
So learn the mood of each candle before you jump in.
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Conclusion
Candlestick patterns are the emoji language of the market.
Once you learn how to read them, youâll stop guessing and start sniping.
They wonât always be rightâŚ
But theyâll help you avoid buying the top like itâs on Black Friday sale.
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Out of Class
If you laughed AND learned, you owe me a like.
If not, Iâll send you Doji candles only for the rest of your trading life.
No Like = No Signal.And hey âBootcamp is FREE.Here is Day 1 Class
But knowledge with no action = watching gym reels while eating cake.
So follow, like, and ask questions in the comments!
Letâs grow your chart-reading powers like your favorite meme coin on steroids.
@CZ