Candle Patterns ExplainedBasics of Candlesticks
A standard candlestick contains:
Body: Difference between open and close
Wicks/Shadows: High and low
Color: Bullish (often green/white) or bearish (red/black)
The structure itself provides signals:
Long bodies → strong momentum
Small bodies → indecision
Long wicks → rejection or strong counterforce
No wick → full control by one side
Understanding this foundation helps interpret every pattern that follows.
Candlestickpattern
Candle Patterns Candlestick charts represent price movement in a visually intuitive way. Each candle shows:
Open
High
Low
Close
The color (green or red) indicates bullish or bearish sentiment. Patterns form when candles combine to express a strong market bias.
Why Candle Patterns Matter
They show real-time market sentiment
Provide early entry signals
Indicate trend continuation or reversal
Help identify trap candles and false breakouts
Crucial for Volume Profile & Market Structure traders to read participant behaviour
Candlestick patterns are classified into:
A. Bullish Reversal Patterns
B. Bearish Reversal Patterns
C. Continuation Patterns
D. Indecision / Neutral Patterns
Real Knowledge of Candle Patterns CANDLESTICK PATTERNS (Price Action Signals)
Candlesticks reflect short-term price behavior and trader psychology. Each candle shows:
Open
High
Low
Close
Patterns range from single candle to multi-candle structures.
Candlestick patterns show reversal, continuation, or indecision in the market.
Let’s explore major categories.
Candle Patterns 🔹 What Are Candlestick Patterns?
Candlestick patterns are formed by one or more candles on a price chart. Each candle shows:
Open price
High price
Low price
Close price
Candlestick patterns reflect the battle between buyers and sellers within a specific time frame.
🔸 Structure of a Candlestick
Body – Distance between open and close
Wick / Shadow – High and low prices
Bullish Candle – Close > Open
Bearish Candle – Close < Open
Candle Patterns Candle Patterns and Volume Profile
Volume profile defines where most trading activity occurs.
Key zones:
VAL (Value Area Low) → Strong buy zone
VAH (Value Area High) → Strong sell zone
POC (Point of Control) → Strong rejection or acceptance
High Volume Node (HVN) → Reversal zones
Low Volume Node (LVN) → Breakout zones
Combine candle patterns:
Example setups:
Bullish Engulfing at VAL
Shooting Star at VAH
Pin Bar at LVN breakout
Inside Bar at HVN compression
This combination gives professional-level accuracy.
#ADANIPOWER – Double Top Danger Zone!📉⚡ #ADANIPOWER 🚨
ADANIPOWER has formed a monthly double top 🔝 near the 179–183 (ATH) zone and is now slipping toward its rising trendline 📉
Price is also trading inside the September monthly candle (182.70–120.00). MCB or sustained close below 120 will signal major weakness ⚠️👇
If selling continues, price may head toward 112.50–124, 92–96 , and the breakout retest supports at 83–87 .
Bulls must defend the trendline to avoid a deeper correction 🛡️🔥
Resistances: 151.20 / 179–183 (ATH)
#ADANIPOWER #PriceAction #DoubleTop #ChartPattern #InsideBar #CandlestickPattern
📌 #Disclaimer: This analysis is shared for educational purposes only. It is not a buy/sell recommendation. Please do your own research before making any trading decisions.
Components of a Candle (Body, Wick, High, Low)Types of Candlestick Patterns
Candlestick patterns are broadly divided into:
A. Single Candlestick Patterns
Formed by just one candle.
B. Double Candlestick Patterns
Formed by two-candle combinations.
C. Triple Candlestick Patterns
Formed by three-candle combinations.
Let’s dive into each category in detail.
Real Knowledge Of Candle Patterns Candlestick Patterns in Reversal Trading
Reversals are powerful when:
Patterns appear on key levels
Trend is exhausted
Volume divergence occurs
Examples:
Morning Star at support
Shooting Star at resistance
Engulfing candles at major swing points
Combining Candles with Indicators
Although candles alone are powerful, combining them with indicators increases win probability.
Best indicators:
RSI for overbought/oversold
Volume Profile / Market Structure
MACD for momentum shift
Moving averages for trend direction
Nifty 50 Price Structure Analysis [08/12/2025: Monday]Top-Down Nifty 50 Price Structure Analysis for 08th December 2025. The day is Monday.
(1) Monthly Time Frame:
Red paper umbrella candle. The body is smaller compared to the lower wick. So far, it is an indecisive market. The main trend is bullish, but the present scenario is indecisive. The major support zone is at 26100 and 26000. Major resistance is at 26300. The view is bullish to indecision.
(2) Weekly Time Frame:
Red paper umbrella candle. The body is smaller compared to the lower wick. There is no upper wick. Thus, there is good buyer participation. Looking at the combination of 3 candles, buyers (or bulls) are getting stronger. The lower wicks are getting longer every week. For the past 3 weeks, the price has been taking very good support at the zone (25850 - 25900). In the present scenario, levels 26100 and 26000 are major support zones. Major resistance is at 26300. Considering, past 8 weeks, the price is in the structure of higher highs and lower lows. Thus, bullishness is intact. Take no bearish trade until the price starts to trade below the zone of 26100 - 26050. Presently, the view is bullish to indecision. If the price keeps sustaining above the level 26200, then probably, the previous all-time high (ATH) will be breached.
(3) Daily Time Frame:
The past 2 days are green days. On 05th December price gave a 200-point bullish rally. However, price is still in the range of the bullish marubozu formed on 26th November (Wednesday). Price needs a stable movement above the level 26200. Presently, 3 levels have emerged as a strong support zone - 26100, 26050, and 26000. So, take no short position unless the price starts to trade below 26000. Any downward move should be doubted. The view is bullish to indecision as the previous ATH and level 26300 are very close.
(4) 30-Minute Time Frame:
The complex correction since 17th October 2025 continues. Presently, price is trying to trade in the upper zone of the rising channel. The direction of the complex correction is bullish but with high volatility and indecisive moves. A strong support zone is formed at the levels 26100 - 26000. A minor resistance is at 26200. Major resistance is at 26300 and the previous ATH (26277.35). Every down move should be doubted. Institutional bias is bullish. The view is bullish.
Event:
No expiries on Monday. No high-impact event. However, the U.S. Fed Interest Rate Decision is on 11th December (Thursday) - a high-impact event in the next week.
Bullish Scenario Set-Up:
(i) Price sustains above the opening price.
(ii) Price sustains above the level 26200 and shows promise of reaching levels 26277.35 (ATH) and level 26300.
Bearish Scenario Set-Up:
(i) Price sustains below the opening price.
(ii) Price starts to sustain below the level 26050 and starts to form a lower lows, lower highs structure below 26000.
No Trading Zone (NTZ): 26200 - 26100.
Expectations (Hypothesis and Insights from Trading Plan):
(i) Take bullish trades only. Price must start to trade above the level 26200.
(ii) Every down move should be doubted. Levels 26100 - 26050 are very strong support.
(iii) Be skeptical of executing trades in the first half of Monday, as level 26277.35 (previous ATH) and level 26300 are close. Also, in case of a gap up or a gap down, be very cautious. A clear price structure is needed for trend clarity.
(iv) Trade only when bullish/ bearish conditions are fulfilled. Otherwise, don't trade. Protect your resources.
NOTE:
"Mark your points. Trade your points. Price is God. Anything can happen. Therefore, trade what you see, not what you believe."
Happy Trading!
Cadnle Patterns Mistakes Traders Make With Candle Patterns
Mistake 1: Trading Every Pattern
Not every hammer means buy; not every engulfing means reversal.
Mistake 2: Ignoring the Trend
Trend is king. Patterns against trend are less reliable.
Mistake 3: No Confirmation
Waiting for confirmation improves accuracy.
Mistake 4: Overlooking Market Structure
Support/resistance is more powerful than candle patterns.
Mistake 5: Using Candles Alone
Combine with other tools for best results.
Candle Patterns Candlestick patterns are one of the most valuable tools for traders. They visually represent the battle between bulls and bears and reveal hidden clues about upcoming market movements. Whether you're trading intraday, swing, or positional, these patterns help spot reversals, continuations, breakouts, and exhaustion points.
But remember: Candle patterns are most powerful when combined with trend analysis, support/resistance, volume, and market structure. Mastering them takes practice, but once you internalize their psychology, you can interpret charts with much more confidence and precision.
Candle Pattern Knowledge Limitations and Best Practices
Candlestick patterns alone should not be used as the only basis for trades. They are best combined with:
Moving averages
RSI or MACD
Support/resistance levels
Volume analysis
Best Practices
Wait for confirmation before entering.
Avoid trading patterns in choppy, sideways markets.
Use stop-losses under key levels.
Combine with market structure for higher accuracy.
Candle Patterns ExplainedCandlestick patterns are one of the most powerful tools in technical analysis. They visually capture the battle between buyers and sellers and show you who is in control of the market at any moment. Each candle represents the market psychology of that particular timeframe—fear, greed, rejection, aggression, and hesitation. When you learn to read candles correctly, you understand the story behind price, not just the price itself.
A single candlestick is made up of four important points: Open, High, Low, and Close (OHLC). The body of the candle represents the distance between open and close. The wicks (also called shadows) show the highest and lowest points reached during the candle. Bullish candles close higher than they open, while bearish candles close lower than they open.
Candle patterns are broadly divided into three categories: Single-candle patterns, Double-candle patterns, and Triple-candle patterns. Each type gives different signals about trend continuation, reversal, or market indecision.
#UNIVPHOTO: Reversal Alert at Falling Channel Midline!CMP: 286
UnivPhoto found support ✅ & bounced strongly off the mid-line of the falling channel (245–266 zone), forming a textbook Morning Star on the weekly chart — a classic bullish reversal! ⭐️🔥
Now testing key resistance 310–337 + downtrend line. A breakout could fuel a rally to 484 → 747/818 → 988 (ATH) 🚀🚀
Could this be the end of the multi-year downtrend? Watch closely! 👀✨
#UNIVPHOTO #MorningStar #CandleStickPattern #PriceAction #LongTerm #Investing
📌 #Disclaimer: This analysis is shared for educational purposes only. It is not a buy/sell recommendation. Please do your own research before making any trading decisions.
Candle Patterns Explained Candlestick patterns are one of the most powerful tools in technical analysis. They help traders understand price movements, market psychology, and potential trend reversals. Each candlestick represents four key data points for a specific time frame: Open, High, Low, and Close (OHLC). The body shows the open and close, while the wicks (shadows) show the high and low. By studying these candles in combinations, traders can forecast upcoming market moves.
1. Bullish Candlestick Patterns
2. Bearish Candlestick Patterns
3. Continuation Candlestick Patterns
Why Candlestick Patterns Matter
Candlestick patterns work because they capture market psychology — fear, greed, indecision, and momentum. When combined with volume, support-resistance, and trend analysis, they become a highly effective decision-making tool for traders.
$NVDA – Weekly Bearish Signal Triggering?CMP: $184
NVDA has formed a Bearish Engulfing on the weekly chart and is currently trading inside the engulfed candle.
A WCB / sustained break below $178.91 will confirm the pattern → likely dragging price toward $164 and the major $153–$148 breakout-retest zone . 🔻
A WCB above the ATH $212.19 will invalidate the pattern and signal a fresh uptrend. 🚀
📌 Note: Q3 earnings to be announced post-market. 🕒
Bias: Short-term bearish, HTF bullish if $148–$153 holds. 💚
#USMarket #NVDA #Stocks #TechnicalAnalysis #PriceAction #BearishEngulfing
📌 #Disclaimer: This analysis is shared for educational purposes only. It is not a buy/sell recommendation. Please do your own research before making any trading decisions.
#ANGELONE: Big Swing Setup Inside Falling Channel#AngelOne | CMP: 2,793.40
Trading inside a falling channel , after a successful retest of the 1949–2022 breakout zone .
Dips toward 2,341 can be considered.
🛡 Supports: 2133–2101 / 2022–1949 (Major Zone)
🚧 Resistances: 3285 / 3503 / 3896 (ATH)
🎯 Falling Channel Target post Breakout: ~4,900 (+77% from CMP)
As long as 1,949 holds , structure stays bullish .
Massive swing opportunity forming. 🔥
#AngelOne #FallingChannel #ChartPattern #CandlestickPattern #PriceAction #SwingTrading
📌 #Disclaimer: This analysis is shared for educational purposes only. It is not a buy/sell recommendation. Please do your own research before making any trading decisions.
Candle Patterns 1. Buyers
Push price upward
Create green candles
Long wicks show rejection of low prices
2. Sellers
Push price downward
Create red candles
Long top wicks indicate weakening buying strength
3. Indecision
Appears in dojis and spinning tops
Market is waiting for direction
4. Reversals
Appear when buyers overpower sellers or vice-versa
Engulfing, hammer, shooting star signal possible turning points
5. Continuation
Patterns like Rising Three Methods show temporary rest before trend resumes
Real Knowledge of Candle Patterns Candlestick patterns are one of the most important tools in technical analysis. They help traders understand price movements, market psychology, and potential trend reversals or continuations. Each candlestick represents a battle between buyers (bulls) and sellers (bears). When you observe many candles together, you see patterns that reveal shifts in momentum. These patterns have been used for centuries—originating in Japan—and remain powerful even in modern algorithmic markets.
To understand candlestick patterns, you must first understand the candle structure. A candlestick has four major price points:
Open – the price at which the candle starts
Close – the price at which the candle ends
High – the highest price reached during the candle
Low – the lowest price reached during the candle
If the close is higher than the open, the candle is bullish (typically green or white). If the close is lower than the open, the candle is bearish (typically red or black). The body shows the open-close range, and the wicks (shadows) show the high-low range.
AMBER at a Critical Turning Point – Trend Shift or Just a Bounce💹 Amber Enterprises Ltd (NSE: AMBER)
Sector: Consumer Durables | CMP: 7376 | View: Early Reversal Attempt Inside Downtrend Structure
Chart Pattern: NA
Candlestick Pattern: Bullish Engulfing
📊 Price Action – What’s Really Happening?
Amber finally showed signs of life after a sharp slide from 8600 levels.
Buyers stepped in near 7180–7200, creating a clean intraday reversal base.
But — the larger trend is still down, so this bounce must prove itself above 7480–7536.
🧭 Support & Resistance
Resistances: 7484 | 7536 | 7592 | 7785
Supports: 7183 | 7090 | 6990 | 6882
Demand zones are strong → resistance zones are layered and heavy.
This is why confirmation matters.
📈 STWP Trading Analysis:
Bullish Breakout: 7400 | Stop Loss: 7180
A clean bounce developed from the swing demand zone after strong absorption of selling pressure. Despite this intraday strength, the daily chart remains in a downtrend with lower highs and lower lows. A possible close above 7480–7535 could shift bias to short-term bullish continuation. Below 7180, weakness can reappear quickly.
🧩 Final STWP Outlook
Momentum: Mild |Trend: Bearish | Risk: Moderate | Volume: Improving
⚠️ Disclosure & Disclaimer – Please Read Carefully
This content is strictly for educational and informational purposes.
It is not a buy/sell recommendation and should not be treated as investment advice.
I am not a SEBI-registered investment adviser.
Markets carry risk, and price can move unpredictably.
Always evaluate your risk, position size, and suitability before trading.
Consult a SEBI-registered adviser before making any financial decision.
Position Status: No active STWP position in AMBER at the time of analysis.
Data Source: TradingView & Market Data Snapshot.
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