Candlesticks aren’t random shapes on a chart. Each one represents a battle between buyers and sellers. When you learn to read these patterns correctly, you stop guessing and start reacting to what price is actually telling you.
5 Candlestick Patterns Every Trader Must Know
1) Hammer
Structure: Small body, long lower wick
Context: Appears after a decline
Meaning: Sellers pushed price down, buyers reclaimed control
Execution tip: Wait for a bullish close next candle
2) Bullish Engulfing
Structure: Large green candle fully covers the prior red candle
Context: Downtrend or pullback
Meaning: Strong momentum shift in favor of buyers
Execution tip: Entry after candle close near support
3) Dragonfly Doji
Structure: Long lower shadow, almost no upper wick
Context: After a drop
Meaning: Aggressive rejection of lower prices
Execution tip: Confirm with volume or structure support
4) Piercing Line
Structure: Red candle followed by green candle closing above 50% of it
Context: Downtrend base
Meaning: Buyers stepping in with intent
Execution tip: Look for continuation candles
5) Tweezer Bottom
Structure: Two candles with nearly identical lows
Context: Local bottom
Meaning: Double rejection of downside
Execution tip: Strongest near key support zones
🔥 Key takeaway:
Candlestick patterns don’t predict the future — they reveal market intent. When combined with structure, support/resistance, and patience, they help you avoid fake entries and unnecessary losses.
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