Blog
Trading Candlestick Pattern: Complete Beginner to Pro Guide
A trading candlestick pattern is one of the most powerful system used in technical analysis. Every trader—whether beginner or professional—uses trading candlestick patterns to understand market psychology, price action, and future trend direction
If you want consistent profits in stock market, crypto, or forex trading, learning trading candlestick pattern is Most important because this method will help you to identify trend rev
A trading candlestick pattern is a visual representation of price movement in a given time frame.
Each candlestick shows
By reading trading candlestick patterns, traders predict trend reversal or trend continuation. you need to understand about upershadow,lower shadow, body and also open price, lower price close price if you cant understand that than you can not understand candlestick pattern theary you cannot understand the buyer seller sentimentÂ
Trading candlestick pattern helps traders to:
- Identify market trend
- Find accurate entry & exit
- Control risk
- Improve winning probability
- understand buyer seller sentimentÂ
Without understanding trading candlestick pattern, trading becomes gambling
- Bullish trading candlestick pattern
- Bearish trading candlestick pattern
- Neutral trading candlestick pattern
Bullish Trading Candlestick Pattern
Bullish trading candlestick pattern indicates price may go up after a downtrend.
1. Hammer – Trading Candlestick Pattern
- Appears at bottom of downtrend
- Long lower wick, small body
- Indicates strong buying pressure
2. Bullish Engulfing – Trading Candlestick Pattern
- Big green candle fully covers previous red candle
- Strong trend reversal signal
3. Morning Star – Trading Candlestick Pattern
- Three candle pattern
- Confirms bullish reversal
Bearish Trading Candlestick Pattern
1. Shooting Star – Trading Candlestick Pattern
- Appears at market top
- Long upper wick
- Indicates selling pressure
2. Bearish Engulfing – Trading Candlestick Pattern
- Large red candle covers previous green candle
- Strong bearish confirmation
3. Evening Star – Trading Candlestick Pattern
- Three candle reversal pattern
- Indicates end of bullish trend
Neutral Trading Candlestick Pattern
Neutral trading candlestick pattern shows market indecision
1. Doji – Trading Candlestick Pattern
- Open and close price almost same
- Signals trend reversal or consolidation
2. Spinning Top – Trading Candlestick Pattern
- Small body with long wicks
- Indicates confusion between buyers and sellers
To trade successfully using trading candlestick pattern, follow this strategy:
- Identify market trend
- Wait for trading candlestick pattern at key level
- Confirm with volume or indicator
- Enter trade with stop loss
-
Maintain risk-reward ratio (1:2 or 1:3)