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Candlestick Analysis

My Favorite Reversal Candle Pattern (Works Like Magic!)Hello Traders! What if I told you that one single candlestick pattern could give you an 80% win rate — when traded with the right context and strategy? That’s right! Today, we’re talking about the powerful Engulfing Candlestick Pattern — backed by data, tested across timeframes, and loved by price action traders. Let’s break it down properly so you can spot it, trade it, and win with it. The Candle Setup: Bullish & Bearish Engulfing Patterns Bullish Engulfing Pattern: This forms at the end of a downtrend or pullback . A strong green candle completely engulfs the previous red candle’s body, signaling a shift from sellers to buyers. This setup is most effective at key support zones, trendline bounces, or bullish reversals with volume confirmation . Bearish Engulfing Pattern: Seen after an uptrend or rally . A solid red candle engulfs the previous green candle’s body, showing a shift from buyers to sellers. Best used near resistance levels, psychological zones, or after a parabolic price move . Check the chart above to understand better! Note: I’ve used real chart examples from the past to demonstrate Bullish & Bearish Engulfing patterns exactly as they appear in price action textbooks — so you can recognize them with clarity and confidence. How to Trade the Engulfing Candle Effectively Entry: Enter above the bullish engulfing candle’s high (long) or below the bearish engulfing candle’s low (short) after the candle closes. Stop Loss: Place SL just below the bullish engulfing candle's low or above the bearish candle’s high. Target: Use a 1:2 or 1:3 risk-reward ratio, or set targets based on nearby support/resistance or Fibonacci levels. When to Use: Only trade engulfing patterns when they form at a confluence zone — such as support/resistance, trendlines, moving averages, or breakout retests . Backtesting Insights When tested across Nifty 50, Bank Nifty, and large-cap stocks on the 15 min, 1H, and Daily charts , the Engulfing pattern — when combined with structure — showed up to 80% success rate with proper risk management and discipline. Rahul’s Tip Don’t blindly trade the pattern—trade the location! Context is everything. Always confirm with structure and volume. Engulfing candles are powerful, but only when they appear where it actually matters. Conclusion The Engulfing Candle is one of the most reliable patterns if traded with patience and planning. Combine it with key zones and risk control , and it can become a high-probability weapon in your trading arsenal. Have you used this pattern before? Share your success (or lessons) in the comments — let’s grow together!
NSE:RELIANCEEducation
by TraderRahulPal
Shooting Star Candlestick Pattern The Shooting Star is a key candlestick pattern that signals the end of an uptrend. It looks like a small body with a long upper shadow, and very little or no lower shadow. This pattern often appears at the peak of an uptrend and can indicate a potential reversal. How to Identify the Shooting Star: 1) Long upper shadow: The upper shadow should be at least twice as long as the body. 2) Gap up: Price opens higher than the previous day’s close. 3) Small body near the bottom: The body of the candle is small and near the bottom of the price range for the day. 4) No lower shadow: The lower shadow is very short or nonexistent. What It Means: The market opens strong and pushes higher during the day, but by the end, the price falls back down, showing that sellers are starting to take control. This could indicate that the uptrend is losing momentum and a reversal might be near. Confirmation: Look for a bearish candle or a gap down the next day to confirm the Shooting Star pattern. Key Insights: 1) The longer the upper shadow, the stronger the potential for a reversal. 2) A gap up followed by a Shooting Star can signal an even stronger reversal. 3) High volume on the Shooting Star day can increase the chances of a significant price change. Example with AARTIIND (Daily Chart) 📊: This is a daily time frame chart of AARTIIND, where a Shooting Star pattern is forming at the top of an uptrend. This visual example will help you better understand how the pattern works in real market conditions.
NSE:AARTIINDShort
by arnavijaygupta
2
Tourism Finance Corp - Major Breakout in Progress!TFCI is showing a significant market structure shift on the weekly time frame (WTF) with strong confluence of technical signals! 📊 🔹 Lower Lows to Higher Low Transition: Blue boxes indicate a series of lower lows, reflecting a prior downtrend. The yellow box highlights a higher low, signaling a potential trend reversal! 🔹 Mother Candle Breakout: The purple lines mark the high and low of the mother bar (key range). Price is now breaking out from the upper side of the mother candle, confirming bullish momentum. 🔹 Counter Trendline (CTL) Breakout: The orange line represents the main CTL on the weekly timeframe. Price is successfully breaking out, indicating a potential trend shift to bullish! Comment below your thoughts
NSE:TFCILTDLong
by Averoy_Apoorv_Analysis
Tata Technologies Stock: A Critical Moment AheadTata Technologies stock has recently been trading near its lifetime low. After reaching an all-time high of ₹1400, the stock dipped to its lifetime low of ₹626.65 and is currently at ₹698. 📊 Bullish Engulfing Pattern: On the weekly chart, the stock has formed a bullish engulfing pattern with volumes significantly higher than the average. This is a potentially strong reversal signal. 🔑 Key Support and Resistance Levels: The stock has previously found support around ₹1000 multiple times. If the bullish engulfing pattern plays out, ₹1000 could act as a strong resistance going forward. Target: If the pattern succeeds, the stock may move towards ₹1000 as a potential target. Stop Loss: Our stop loss will be placed just below the low of the bullish engulfing pattern for a controlled risk strategy.
NSE:TATATECHLong
by arnavijaygupta
Max Financial Services Ltd – Trend Reversal in Play?🚀 Technical Analysis Breakdown: The yellow trendline shows a long-term support, which has held well despite recent corrections. The red downtrend line indicates a recent bearish phase, which has now been broken with a strong bullish candle. The stock has bounced from the trendline support, showing signs of strength. Above all the strong Pinbar candle looks amazing for a candle close . 🔎 Your Take? Do you see further upside or a pullback? Comment below! 👇
NSE:MFSLLong
by Averoy_Apoorv_Analysis
Positional or Longterm Opportunity in KfinechGo Long @ 918.55 for Targets of 1109.65, 1205.2, 1300.75, and 1491.85 with SL 439.15 Reasons to go Long : 1. On a Weekly timeframe if we draw the Fibonacci retracement tool from the recent swing low (point A) to the recent swing high (point B) then we see stock took support from the 0.618 Fibonacci level. 2. Besides, a bullish candlestick pattern Bullish Hammer (marked with orange) is formed around the 0.618 Fibonacci level. 3. In addition to this there is a strong demand zone (marked with purple) which earlier was acting like resistance but now is providing support to the stock. 4. There is also a strong Trendline (marked with green) that is providing support to the stock.
NSE:KFINTECHLong
by Nimish_Ghagare
Nifty 50 Weekly Analysis: Key Levels & Trend OutlookThe Nifty 50 ended the week at 23,350.40, recording a notable gain of 4.26%. Key Levels for the Upcoming Week 🔹 Price Action Pivot Zone: The critical range to monitor for potential trend reversals or continuation is 23,274 - 23,427. 🔹 Support & Resistance Levels: Support: S1: 23,046 S2: 22,743 S3: 22,427 Resistance: R1: 23,658 R2: 23,965 R3: 24,227 Market Outlook ✅ Bullish Scenario: A sustained breakout above 23,427 may attract buying interest, potentially pushing Nifty towards R1 (23,658) and beyond. ❌ Bearish Scenario: If the index slips below 23,274, selling pressure could increase, driving Nifty towards S1 (23,046) or lower. Disclaimer: This analysis is for educational purposes only. Investors should conduct their own research before making any trading decisions.
NSE:NIFTY
by Alice Blue
Bank Nifty Weekly Update & Key Levels📌 Weekly Recap: Bank Nifty closed the week at 50,593.55, recording a strong gain of 5.27%. Key Levels for the Upcoming Week 🔹 Price Action Pivot Zone: The crucial range to watch for potential trend reversals or continuation is 50,482 - 50,707. 🔹 Support & Resistance Levels: Support: S1: 50,146 S2: 49,698 S3: 46,956 Resistance: R1: 51,046 R2: 51,470 R3: 51,893 Market Outlook ✅ Bullish Scenario: A sustained move above 50,707 could drive buying momentum, pushing Bank Nifty towards R1 (51,046) and higher. ❌ Bearish Scenario: If the index falls below 50,482, selling pressure may intensify, dragging it towards S1 (50,146) and lower support levels. Disclaimer: This analysis is for educational purposes only. Investors should conduct their own research before making any trading decisions.
NSE:BANKNIFTY
by Alice Blue
Kalyani Steels trendline breakout - D timeframeKalyani Steels after achieving the target of 1179.50 exited parallel channel and held support at 700 range. Bullish reversal happened at 704.20 (mar 3) and bullish reversal confirmation at 721 (mar 17). Dec 17 '24 ATH to Mar 3 '25 precisely 44.86% fall as anticipated. Now price chart in daily timeframe showing double bottom with inverted hammer (Mar 19) along with RSI double bottom breakout. Weekly chart piercing line (i think) candlestick pattern along with RSI +ve divergence.
NSE:KSLLong
by naraykln
Nifty weekly analysis for 17/03/2025Nifty is trading between 100 EMA (weekly) and 20 EMA (daily). A good support from the weekly moving average is there and resistance on the daily charts. A continuous support from 22300 level is there as the market has remained in a range whole week. If the market tried to breach the support level, the support of weekly 100 EMA can be the other support around 22030 else it will take support around 21800. In case the market starts to recover from the bottom and creates a higher high higher low formation it has to take out the resistance of 22650 and 22758. Major levels are plotted in the charts. Just wait for the price action to confirm the entry into a trade else another sideways market can be seen. Inside candle formation on the daily charts is also there and break out/down can be traded accordingly. Different trading approaches can help in capturing a good trade. Wait for the price action near the levels before entering the market.
NSE:NIFTY
by TheMamboMomentum
Positional or Longterm Opportunity in JSW EnergyGo Long @ 506.8 for Targets of 634.35, 709.75 and 777.4 with SL 439.15 Reasons to go Long : 1. On a Weekly timeframe if we draw the Fibonacci retracement tool from the recent swing low (point A) to the recent swing high (point B) then we see stock took support from the 0.5 Fibonacci level. 2. Besides, a bullish candlestick pattern Bullish Engulfing (marked with orange) is formed around the 0.5 Fibonacci level. 3. In addition to this there is a strong demand zone (marked with purple) which earlier was acting like resistance but now is providing support to the stock.
NSE:JSWENERGYLong
by Nimish_Ghagare
2
Positional Opportunity in AptusGo Long @ 304.15 for a Target of 382.6 with SL 278 Reasons to go Long : 1. On a Monthly timeframe if we draw the Fibonacci retracement tool from the recent swing low (point A) to the recent swing high (point B) then we see stock took support from the 0.618 Fibonacci level. 2. Besides, a bullish candlestick pattern Bullish Hammer (marked with orange) is formed around the 0.618 Fibonacci level. 3. Also there is a strong Trendline (marked with green color) which supports the stock.
NSE:APTUSLong
by Nimish_Ghagare
Coforge-A perfect watchlist stock!Coforge is an IT services company providing end-to-end software solutions and services and is among the top-20 Indian software exporters according to Screener data. Stock has give 20% compounded sales growth in last 5 years which is quite remarkable. Hence, It can be a good stock to be kept in watchlist for medium to long term. Stock had given breakout of cup and handle pattern in weekly time frame and is now retesting the same. Stock has formed a kind of morning star pattern at the retest support zone. Need to watch if it sustains above this zone. As you can see, retest zone also coincides with 50% fib retracement which makes it even stronger. If we see good buying in this stock from here, we can see ATH levels soon and even bigger levels in coming years. However, If stock goes below 61.8% retracement, it is not advisable to hold.
NSE:COFORGELong
by chartistamey
13
Nifty weekly analysis for 10/03/2025.Is this the end of the fall or its just a retracement. The market after a while has given some hope of a green week. It is a retest or a base formation no body knows. Nifty is trading around 22550 levels and looks somewhat positive for the coming week. Market is still in the down trend and bullish trend will only be confirmed once a 'W' pattern is formed on higher time frame or a break out is done. On the hourly charts, market remained in a range for the last trading session, the sideways market can continue as it may form a base and trend reverses from here. In case the market remains in the trend lower levels of 21800-850 might be coming. Else market may start travelling on the higher side hitting the resistance levels. Major support levels :- 22310-360, 22050-090 Resistance levls :- 21620, 21760 A gap filling trade on the higher side can be seen in the coming week as a gap is pending. Watch for the price action and trade accordingly. A sideway or volatile market is more probable as the market has been trading in a trend.
NSE:NIFTY
by TheMamboMomentum
#SDBLFundamentals: * ROCE - 19.4%, ROE - 18.4%. Debt to Equity - 0.21 * EPS / Revenue - has been steadily increasing * FII/FPI have increased holdings from 0.56% to 0.90% in Dec 2024 qtr. * Institutional Investors have increased holdings from 0.57% to 0.92% in Dec 2024 qtr. * Promoters have increased holdings from 35.33% to 36.32% in Dec 2024 qtr. Technicals: * Bullish Candlestick Patterns - Closing Marubozu Uptrend / Long Line Uptrend * Weekly Chart shows that 10 WEMA is crossing above the 20 WEMA * On daily chart, there is a low risk entry available * Two days of green candles Price is forming a tight action and emerging from a cup formation * Volumes had declined while consolidating and with up move are now showing signs of increase * RVOL and ADR is great and spiking * Relative strength is strong / Momentum indicates steady maintenance / ADR is 5.8% and indicating up move Good for positional trade. SIP type entry considering that market is pretty crazy as of now. Note - Entry / SL / Target / Position size - Please figure out on your own based on risk appetite Disclaimer - Your money requires your due diligence! I merely analyze and bring out probabilities. All the best.
NSE:SDBLLong
by mdmahanti