Basic candlestick patterns
Some candle shapes repeat and give hints about what might happen next. They aren’t guarantees: they work best when they appear at a support or resistance and with high volume.
Hammer Bullish
Appears after drops. Long lower wick and a small body at the top: sellers pushed down, but buyers won the price back.
Shooting star Bearish
The opposite of the hammer. Appears after rises, with a long upper wick: buyers tried to push higher and failed.
Bullish engulfing Bullish
A big green candle that completely “swallows” the previous red one. A sign that buyers are taking control.
Bearish engulfing Bearish
A big red candle that swallows the previous green one. Sellers are taking control.
Doji Indecision
Opens and closes at almost the same price, shaped like a cross. Indecision: the market is unsure. It often warns that the trend is running out of steam.