5 Candlestick Patterns Every Indian Trader Should Know

Candlesticks compress the battle between buyers and sellers into a single, readable shape. A handful of patterns, used with context, can dramatically sharpen your timing.

1. The Hammer & Shooting Star

A hammer—small body with a long lower wick at the bottom of a downtrend—signals buyers rejecting lower prices. Its mirror, the shooting star, warns of a top when it appears after a rally.

2. Bullish & Bearish Engulfing

An engulfing candle completely swallows the previous one, showing a decisive shift in control. A bullish engulfing at support, or a bearish engulfing at resistance, is among the most reliable reversal signals.

3. The Doji's Indecision

A doji—where open and close are nearly equal—reflects a standoff. On its own it means little, but at a key level after a strong trend it often precedes a turn. Always confirm with the next candle.