What Is a Candlestick?
A candlestick represents price movement over a specific time period. Each candle has four key data points: Open, High, Low, and Close (OHLC). The body shows the range between open and close, while the wicks (shadows) show the high and low extremes.
Bullish vs Bearish Candles
Bullish (green/white) candle: The close is higher than the open. Buyers were in control during this period.
Bearish (red/black) candle: The close is lower than the open. Sellers were in control.
Key Candlestick Patterns
Doji: Open and close are nearly equal, creating a tiny or non-existent body. Signals indecision. After a strong trend, a doji can be a reversal warning.
Hammer: Small body at the top, long lower wick. Found at the bottom of downtrends. Signals buyers rejected lower prices — potential reversal up.
Shooting Star: Small body at the bottom, long upper wick. Found at tops of uptrends. Signals sellers rejected higher prices — potential reversal down.
Bullish Engulfing: A large green candle that completely engulfs the previous red candle. Strong bullish reversal signal.
Bearish Engulfing: A large red candle that completely engulfs the previous green candle. Strong bearish reversal signal.
Morning Star: A 3-candle bullish reversal pattern: large red candle, small indecision candle, then a large green candle. Often found at major bottoms.
How to Use Candlesticks in Practice
Don't trade candlestick patterns in isolation. Always confirm with: volume (is there above-average volume on the signal candle?), key levels (is the pattern forming at support/resistance?), and other indicators like RSI.
On TradePro's learning academy, you can study these patterns on live TradingView charts and practice spotting them in real market conditions.
Educational only. Not financial advice.