Candlestick Patterns for Beginners: 10 Patterns Every Indian Trader Should Know
Learn the 10 most useful candlestick patterns, including doji, hammer, engulfing, morning star and marubozu, what they mean and when they fail.
A candlestick shows four prices for a period: open, high, low and close. The body shows the distance between open and close, and the wicks show how far price travelled beyond them. Green (or white) means it closed higher than it opened; red (or black) means it closed lower.
Patterns matter most in context. The same candle means different things in an uptrend, a downtrend or a sideways range. Always ask: where is this candle forming, and what is the larger trend?
Single-candle patterns
1. Doji
Open and close are almost equal. It shows indecision. After a long move it can warn that momentum is fading.
2. Hammer
A small body near the top with a long lower wick, found after a fall. Sellers pushed price down, but buyers pushed it back up. More meaningful at support.
3. Inverted hammer
A small body near the bottom with a long upper wick after a fall. It hints that buyers are starting to test higher prices.
4. Shooting star
Same shape as an inverted hammer but after a rise. Buyers pushed up and failed, which can signal weakness.
5. Hanging man
Same shape as a hammer but after a rise. It shows heavy selling during the session and needs confirmation.
6. Marubozu
A long body with little or no wicks. One side was in complete control for the whole period.
Multi-candle patterns
7. Bullish engulfing
A green candle whose body fully covers the previous red body. Buyers took over decisively.
8. Bearish engulfing
The opposite: a red body fully covering the previous green body.
9. Morning star
Three candles after a fall: a long red candle, a small indecisive candle, then a strong green candle closing well into the first candle's body.
10. Evening star
The top-side mirror image: long green, small candle, then strong red.
Why patterns fail
- They form against the main trend
- They appear in the middle of nowhere, not at a key level
- Volume does not confirm them
- The trader has no stop-loss plan
Candlesticks are the first module of our Foundation course. Want a one-page summary? Ask for our free cheat sheet on WhatsApp.
Frequently asked questions
Do candlestick patterns work?
Candlestick patterns show who controlled price during a period. They work best as part of a complete plan with trend, location and volume, not on their own.
Which candlestick pattern is the most reliable?
No single pattern is reliable alone. Engulfing and hammer patterns at a strong support or resistance level, in the direction of the main trend, tend to be more meaningful.