Learn 10 Important Candlestick Patterns for Beginners (2025)
Candlestick charts are one of the most powerful tools in technical analysis. Each candle shows market psychology — whether buyers or sellers are in control.
For beginners, understanding candlestick patterns can help in spotting potential trend reversals, continuations, and entry/exit points.
In this guide, we will cover 10 important candlestick patterns with visuals, simple explanations, and when to use them in trading.
🔨 1. Hammer
A Hammer appears at the bottom of a downtrend. It has a small body and a long lower shadow. This signals that buyers are stepping in and the trend may reverse upward.
When to Use: Best used as a bullish reversal signal near support zones, especially when confirmed by higher volume.
⭐ 2. Shooting Star
A Shooting Star appears after an uptrend. It has a small body and a long upper shadow, showing that buyers tried but sellers regained control.
When to Use: A potential bearish reversal pattern, especially when formed near resistance levels.
➕ 3. Doji
A Doji forms when the open and close prices are almost equal. It shows indecision between buyers and sellers.
When to Use: Works as a trend reversal signal when it appears after a long uptrend or downtrend.
📘 4. Engulfing (Bullish & Bearish)
An Engulfing pattern occurs when one candle fully covers (engulfs) the previous candle’s body.
- Bullish Engulfing: Appears after a downtrend when a large green candle engulfs a smaller red candle → signals uptrend reversal.
- Bearish Engulfing: Appears after an uptrend when a large red candle engulfs a smaller green candle → signals downtrend reversal.
When to Use: Works best near strong support or resistance with volume confirmation.
🌅 5. Morning Star
The Morning Star is a 3-candle bullish reversal pattern found at the bottom of a downtrend:
- First candle – long red (selling pressure).
- Second candle – small body (indecision, often a Doji).
- Third candle – long green, confirming bullish reversal.
When to Use: A strong sign of trend reversal if accompanied by high volume.
🌇 6. Evening Star
The Evening Star is the opposite of the Morning Star and appears at the top of an uptrend. It is a bearish reversal pattern with 3 candles:
- First candle – long green (strong buyers).
- Second candle – small body (indecision).
- Third candle – long red (sellers take control).
When to Use: A clear bearish reversal sign when seen near resistance with heavy volume.
🎡 7. Spinning Top
A Spinning Top has a small body with long upper and lower shadows. It represents indecision between buyers and sellers.
When to Use: If found after a strong rally or fall, it may signal a pause or possible reversal. Needs confirmation from the next candles.
🪓 8. Hanging Man
The Hanging Man looks like the Hammer but appears after an uptrend. It has a small body on top with a long lower shadow.
When to Use: It warns that sellers are testing the market. A bearish reversal may follow if confirmed with high volume.
🤰 9. Bullish Harami
A Bullish Harami occurs when a small green candle is completely inside the body of a large red candle.
When to Use: Found in downtrends, it suggests bearish momentum is weakening and buyers may return.
⚠️ 10. Bearish Harami
A Bearish Harami forms when a small red candle appears inside the body of a large green candle.
When to Use: Appears after an uptrend and signals that buyers are losing strength. If confirmed, it indicates a bearish reversal.
Mid-Post Thumbnail: 10 Candlestick Patterns for Beginners
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❓ Frequently Asked Questions
1) Which candlestick pattern is best for beginners?
The Hammer and Bullish Engulfing are simplest to spot and reliable for beginners.
2) Can candlestick patterns fail?
Yes. They must be confirmed with volume, support/resistance, or other indicators like RSI and Moving Averages.
3) How many candlestick patterns exist?
There are over 50 patterns, but beginners should focus on the top 10 listed in this guide.
4) Do professional traders rely only on patterns?
No. They use candlestick patterns along with fundamentals, risk management, and other chart indicators.
5) Can candlestick patterns be used for intraday trading?
Yes, they are widely used in intraday and swing trading. But practice on demo accounts before risking real money.
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- Day 29: Best Dividend Stocks for 2025
- Day 28: Golden Stocks for Long-Term
Disclaimer: This article is for educational purposes only. Stock market investments are subject to risks. Please consult a SEBI-registered advisor before investing.
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