Candlestick Trading Full Course | Candlesticks Free Masterclass #candlestickpattern #trading

Understanding the market begins with its language: candlesticks, the simple building blocks of charts. A concise, all‑in‑one walkthrough explains what candlesticks are, how charts form from them, and the essential patterns to know. Coverage focuses on candlestick patterns and their bullish and bearish forms, keeping the idea easy and quick to grasp. By the end, there’s no need to watch any other candlestick video.

The market communicates through charts, but among line, bar, Japanese candlestick, and Heiken Ashi, only Japanese candlesticks truly matter here. Line charts merely trace up-and-down moves without clarifying direction, making technical analysis impractical, and bar charts are likewise unhelpful. Professional traders rely on Japanese candlesticks because they reveal far more about market behavior. The focus turns to mastering Japanese candlesticks as the primary framework for reading the market.

Green Rises, Red Falls Candlestick color encodes direction: green marks a price increase, red marks a decline. A candle turns green only when the close is above the open; it turns red when the close is below the open. If a session opens at 100 and closes at 120, the candle is green; if it closes at 80, it is red.

Open, Close, High, Low Define the Candle Each candle records where price opened, where it closed, the highest point reached, and the lowest point touched. A daily move opening at 10, dipping to 7, rising to 15, and closing at 13 yields open 10, low 7, high 15, close 13. Another session opening at 20, peaking at 50, briefly touching 10, and closing at 40 fixes the same four landmarks for that day. Connecting open, close, high, and low forms the candlestick.

Body, Wicks, and Timeframes The block between open and close forms the body, while thin lines above and below mark wicks, also called shadows, that show the high and low. Candlesticks can represent minutes, hours, days, months, or years. Choosing a 1‑day candle compresses that day’s journey into this single body and its wicks. This anatomy underpins the study of candlestick patterns.

Two candlestick patterns define direction: bullish and bearish. A bull runs forward—when price rises, the move is bullish. A bear hibernates and drops—when price falls, the move is bearish and shown in red.

Bullish Patterns: Reversals vs Continuations Bullish candlestick patterns point to upward movement. They split into reversals, where a decline flips and price starts rising, and continuations, where an existing rise keeps going. After a run of red candles, certain formations hint that sellers are tiring and buyers may take over. These signals raise probabilities but never guarantee outcomes, so they should not be used in isolation.

Hammer and Inverted Hammer: Color-Independent Reversal Hints Following a decline, a hammer appears and suggests the market can pivot upward, whether the candle is red or green. The same logic applies to the inverted hammer, simply the hammer turned upside down. These cues recur frequently but sometimes fail, so treat them as chances rather than certainties. Wick specifics aren’t the focus here; context after a down move matters most.

Piercing Line: Gap-Down, Strong Recovery In a downtrend, price gaps lower and prints a green candle that fills the gap and closes reclaiming more than half of the previous red body. That surge signals buyers asserting strength and a potential upward flip. The defining features are the gap-down open and a close deep into the prior candle’s range.

Morning Star and Three Green Soldiers Morning Star forms as a big red candle, then a small candle of any color, followed by a large green candle that covers at least 50% of the big red, marking a bullish reversal. Three Green Soldiers appear after a decline as three consecutive, strong green candles of roughly similar size, not tiny or wildly uneven. Wicks above or below don’t matter much; the emphasis is on solid, back-to-back strength. Both patterns signal momentum shifting from sellers to buyers and an upward push from the prior drop.

Top Hammers Warn of a Fall After a strong rise, a hammer-shaped candle at the top signals the market can drop from here. Color is irrelevant—green, red, or any other—shape is what matters. An inverted hammer (shooting star) or a hanging man conveys the same warning, and most often the market falls after it appears.

Bearish Engulfing: One Red Candle Overpowers the Uptrend In an uptrend filled with green candles, a large red candle that completely swallows the prior candle’s range signals a drop. If the red body covers the previous candle’s highs and lows, the message is strong: the market is likely to fall from here. The market often falls immediately after this signal. This is the bearish mirror of the bullish engulfing pattern.

Evening Star Signals Darkness After the Run After a run-up, a big green candle is followed by a small candle (any color), then a large red candle that retraces more than 50% of the green. The middle candle must be small; the final red candle should be big for the pattern to count. When this trio forms, it announces that the market is likely to fall—“evening” and darkness approaching.

Dark Cloud Cover and Three Black Crows Confirm Reversal Dark cloud cover is the opposite of the piercing line: after an advance (often with a gap up), a red candle opens above the prior close and then closes deep into the previous green, covering more than 50%. This intrudes into bullish territory like a dark cloud and signals looming downside. Three black crows—remembered as three solid red soldiers—are three consecutive strong red candles after an uptrend, emphasizing that “solid” size matters. When these three appear, the prior rise gives way and the market turns lower.

When trends are already in motion, continuation patterns suggest the path will persist—downtrends extending lower, uptrends pushing higher—unlike reversals that flip direction. A doji, no matter its color, distills that moment when neither buyers nor sellers hold sway, capturing pure indecision. Its close cousin, the spinning top, stretches the shadows into longer wicks, amplifying the same uncertainty while keeping direction undefined. Picture a session that opens near 100, surges to 150, then fades to end around 98; the small body and pronounced extremes reveal how price probed both sides without commitment.

A single indecision candle captures a pause where the market hesitates and neither buyers nor sellers assert control. Outcomes after such a candle vary—sometimes price continues, sometimes it reverses—so it does not qualify as a proper continuation or reversal pattern. The candle’s message is limited to that moment: clear indecision without a decisive push from either side.

Bullish means the market will run up, and the Three Line Strike marks continuation of where price is already coming from. In an uptrend, three red candles can appear and look like a turn, but a big green candle that covers all three makes it a bullish three line strike and the move runs up again. In a downtrend, three green candles may tempt traders to call a reversal, yet one red candle that covers all three forms a bearish three line strike and the market goes down again. Those who enter before that final candle get stuck; never trade solely on candlestick patterns—this is for educational purposes.

Morning Star is a bullish reversal only after a downtrend Spot it as a red candle, a small candle of any color, then a green candle that covers more than 50% of the first candle. It is valid only after a decline; seeing this trio in an uptrend is a misread. Think “from darkness to morning”: price drops, stabilizes, then powers higher. In the example, price jumped right after it formed.

Hammers and spinning tops signal potential turns; color doesn’t matter for hammers After a rise, an inverse hammer appeared and price fell. A spinning top shows shadows on both sides with a small body in the middle, like a whirlwind. During a short-term drop, a hammer emerged; its color doesn’t matter and it signals a reversal.

Classify reversal vs continuation correctly and never trade patterns in isolation Pattern reading is contextual: reversals require a preceding move in the opposite direction. In this set, only Three Line Strike and Bearish Three Line Strike were specified as continuation patterns; Doji and Spinning Top were not. Don’t trade solely on candlestick patterns; consider additional factors before taking a trade.

Pick a favorite stock—HDFC, Reliance, Tata, SBI—and open its chart to hunt down all 16 candlestick patterns taught, capturing each as a screenshot to submit on Instagram. If some patterns don’t appear, share whatever you find and reach out for help tracking the rest. Stick to the official Instagram links in the video description to avoid fakes and follow the account when you submit. This complete candlestick course comes free despite often being sold for 10–20k, and the next price action course arrives once the video passes 10,000 likes. Keep the support coming with a like, subscribe, and a comment.

There are countless patterns, but the essential ones have already been taught. The rest mostly echo these foundations with only small up-or-down tweaks. Fitting everything into one video would be impractical, so another video may add one or two remaining important patterns. No need to worry; if any difficulty arises, message on Instagram.