Candlestick Patterns Explained: overview for Beginners and Always DYOR 🌺

Candlestick patterns help traders understand market behavior.

They show how buyers and sellers fight during a specific time period.

Each candlestick tells a story.

1️⃣ What is a Candlestick?

A candlestick shows price movement in a given time (1 minute, 1 hour, 1 day, etc.).

Each candlestick has:

Open – price when the candle started

Close – price when the candle ended

High – highest price

Low – lowest price

📌 Green candle = price went up

📌 Red candle = price went down

2️⃣ Candle Body and Wicks (Very Important)

Body shows strength of buyers or sellers

Upper wick shows rejection from higher price

Lower wick shows rejection from lower price

Long body = strong move

Long wick = rejection or hesitation

3️⃣ Single Candlestick Patterns

🔹 Doji

Open ≈ Close

Market is confused

No clear winner

📌 Often appears before a big move.

🔹 Hammer

Small body

Long lower wick

Appears after a drop

📌 Shows buyers are trying to take control.

🔹 Shooting Star

Small body

Long upper wick

Appears after an uptrend

📌 Shows sellers are pushing back.

4️⃣ Two-Candle Patterns

🔹 Bullish Engulfing

Green candle fully covers previous red candle

Strong buying pressure

📌 Possible trend reversal upward.

🔹 Bearish Engulfing

Red candle fully covers previous green candle

Strong selling pressure

📌 Possible trend reversal downward.

5️⃣ Three-Candle Patterns

🔹 Morning Star

Red candle → small candle → green candle

Appears after a downtrend

📌 Bullish reversal signal.

🔹 Evening Star

Green candle → small candle → red candle

Appears after an uptrend

📌 Bearish reversal signal.

6️⃣ Most Common Beginner Mistake

Many beginners trade only based on patterns.

This is risky.

Candlestick patterns work best when combined with:

Support & resistance

Trend direction

Volume

📌 Patterns alone are not magic.

7️⃣ Best Timeframes for Beginners

Recommended timeframes:

15m

1h

4h

Avoid very small timeframes — they create noise.

Final Advice

Candlestick patterns help you:

Read market emotions

Avoid emotional trades

Improve entry and exit timing

But always remember:

Candles show probability, not certainty.

👉 Question for beginners:

Which pattern confuses you the most — Doji, Hammer, or Engulfing?

@Binance Square Official @Binance Earn Official

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