Candlestick Charts show four prices in one visual: open, high, low, close. Green candle = price closed higher than it opened. Red candle = price closed lower. That’s it. Most traders overthink this.
The Body vs The Wick
The body (thick part) shows opening to closing price. The wick (thin line) shows how far buyers or sellers pushed before getting rejected. Long lower wick? Sellers attacked hard but buyers said “no thanks” and rallied back up. Long upper wick? Buyers pushed hard but sellers crushed it back down.
That’s market conversation happening live on charts.
Patterns Everyone Should Know
Hammer – small body with long lower wick after downtrends. Says “sellers pushed down but failed to hold.” HDFC bounced from ₹1,410 hammer straight to ₹1,600. Work? Absolutely.
Shooting Star – small body with long upper wick after rallies. Says “buyers pushed up but couldn’t hold it.” Infosys rejected ₹1,520 and dropped to ₹1,400. Pure rejection.
Bullish Engulfing – large green candle swallows small red candle. Buyers took over completely. Reliance showed this at ₹2,350 then exploded higher.
Bearish Engulfing – large red candle swallows small green candle. Sellers won decisively.
What Kills Traders
Trading patterns without checking the bigger trend destroys accounts. The shooting star looks bearish on the 4-hour chart but the daily chart shows an uptrend—that “signal” is garbage.
Low volume engulfing patterns fail constantly in choppy markets. Missing volume confirmation = whipsaw trap.
Never trade single candle patterns alone. Combine with support-resistance, volume, moving averages, RSI.
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