Master the basics of candlestick reading with this quick guide!
Candlestick Anatomy š
Body: Rectangle between open and close prices
Green/White: Close > Open (bullish)
Red/Black: Close < Open (bearish)
Wicks/Shadows: Lines above/below body
Upper wick: High price reached
Lower wick: Low price reached
Key Single Candle Patterns š
Doji āļø
Shape: Small body, long wicks
Meaning: Indecision, potential reversal
Best: At trend extremes
Hammer šØ
Shape: Small body at top, long lower wick
Meaning: Bullish reversal after downtrend
Confirm: Next candle closes higher
Shooting Star ā
Shape: Small body at bottom, long upper wick
Meaning: Bearish reversal after uptrend
Confirm: Next candle closes lower
Engulfing š
Bullish: Large green candle engulfs previous red
Bearish: Large red candle engulfs previous green
Signal: Strong reversal indication
Multi-Candle Patterns š
Three White Soldiers š„
Pattern: Three consecutive strong green candles
Signal: Powerful bullish continuation
Best: After consolidation or pullback
Evening/Morning Star ā
Evening: Green + Doji + Red (bearish reversal)
Morning: Red + Doji + Green (bullish reversal)
Key: Middle candle shows indecision
Quick Reading Tips š”
ā
Larger bodies = stronger momentum
ā
Long wicks = rejection at levels
ā
Small bodies = indecision/consolidation
ā
Volume confirms pattern validity
ā
Context matters - check overall trend
Practice Checklist š
Identify candle color and body size
Check wick lengths and direction
Look for patterns at key levels
Confirm with volume
Consider broader market context
Pro tip: Start with major timeframes (4H, 1D) before moving to shorter ones.
Educational content. Practice on demo first!