📊 Important types of Candlestick and their explanations
1. Bullish Candle (Green / Upward Candle)
This indicates that buyers have more strength in the market and the price has increased.
Color: Green (or white)
Open: opened lower
Close: closed higher
📈 Indicator: The market is going up.
2. Bearish Candle (Red / Downward Candle)
This indicates that sellers have more strength in the market and the price has dropped.
Color: Red (or black)
Open: higher
Close: closed lower
📉 Indicator: The market is going down.
🔍 Special Candle Pattern (Special Candle Types)
3. Doji Candle
This occurs when Open and Close are almost equal.
🟡 Meaning: There is uncertainty in the market.
If it is in a downtrend → possible reversal up
If it is in an uptrend → possible reversal down
4. Hammer Candle
This is a bullish reversal candle that forms after a downward trend.
👇 Long lower wick (tail)
Small body up
📈 Meaning: The market was going down, but buyers took control → it can go up.
5. Shooting Star Candle
This is a bearish reversal candle that forms after an upward trend.
👆 Long upper wick
Small body down
📉 Meaning: The price had gone up, but selling started → the market can go down.
6. Engulfing Candles
🔹 Bullish Engulfing:
Pattern of two candles
First small bearish candle
Second large bullish candle that completely "engulfs" the first one.
📈 Meaning: The market was down, now it can go up.
🔸 Bearish Engulfing:
First small bullish candle
Second large bearish candle that completely "engulfs" the first one.
📉 Meaning: The market was up, now it can go down.
7. Spinning Top
Body is small
Has wicks on both sides
🟠 Meaning: There is indecision in the market. Buyers and sellers have equal strength.
8. Marubozu Candle
No wick present
The entire candle consists only of the body.
🔹 Bullish Marubozu:
📈 Price started from below and continuously went up.
🔸 Meaning: Very strong buying
🔸 Bearish Marubozu:
📉 Price started from above and continuously went down.
🔻 Meaning: Very strong selling
✅ Summary Table
Candle Type Meaning / Indicator
Bullish Candle Price increased – buyer is strong
Bearish Candle Price drops – seller is strong
Doji Indecision – no decision made.
Hammer Reversal upwards from below
Shooting Star Reversal downwards from above
Bullish Engulfing Can go up after a downtrend
Bearish Engulfing Can go down after an uptrend
Spinning Top The market is undecided.
Marubozu Complete control – either strong buying/selling