Nifty Bank Index
Education

Technical Class

61
Candlestick patterns are essential tools in technical analysis that help traders predict potential market movements based on price action. Each candlestick represents four key data points: Open, High, Low, and Close prices within a specific time frame.

Types of Candlestick Patterns:
1. Single Candlestick Patterns
Doji: Market indecision (Open ≈ Close)

Hammer: Bullish reversal, long lower wick

Shooting Star: Bearish reversal, long upper wick

Spinning Top: Market indecision, small body

2. Double Candlestick Patterns
Bullish Engulfing: Strong bullish reversal

Bearish Engulfing: Strong bearish reversal

Tweezer Bottom/Top: Reversal signals

3. Triple Candlestick Patterns
Morning Star: Bullish reversal (3 candles)

Evening Star: Bearish reversal (3 candles)

Three White Soldiers: Strong bullish continuation

Three Black Crows: Strong bearish continuation

✅ Importance in Trading:
Predict Trend Reversals

Identify Continuation Patterns

Spot Market Sentiment Early

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