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Session 2 Notes

Candlestick patterns are visual indicators used in trading to predict market movements based on the relationship between opening, closing, high, and low prices. Key patterns include Bullish Marobozu, Bearish Marobozu, Hammer, Inverted Hammer, Hanging Man, Shooting Star, and Doji, each signaling different market sentiments. Understanding these patterns helps traders identify potential reversals and trends in the market.

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6 views12 pages

Session 2 Notes

Candlestick patterns are visual indicators used in trading to predict market movements based on the relationship between opening, closing, high, and low prices. Key patterns include Bullish Marobozu, Bearish Marobozu, Hammer, Inverted Hammer, Hanging Man, Shooting Star, and Doji, each signaling different market sentiments. Understanding these patterns helps traders identify potential reversals and trends in the market.

Uploaded by

wajahat ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Understanding The

Candlesticks
Patterns

Presented by Investrone
What Are Candlestick Patterns?
Candlestick patterns are shapes formed by a single
candle that tell us what the market might do next.
They help traders understand if buyers or sellers are
getting stronger.

Each candle shows 4 things:


Open Price
Close Price
High
Low
🟩 A green (bullish) candle means price went up.
🟥 A red (bearish) candle means price went down.
Parts Of Candle
[
[
Body Wick
Candlestick
Explained
High
High

Closed Price
Open Price

Open Price
Closed Price

Low
Low
Candlestick Patterns Explained

Bullish Marobozu Bearish Marobozu Hammer Hanging Man

Inverted Hammer Shooting Star Doji Candle


Candlestick Patterns
Bullish Marobozu

A full green candle with no wicks — it opens at the low and closes at the high.
Shows strong buying pressure and usually appears at the start of a bullish trend.
Candlestick Patterns
Bearish Marobozu

A full red candle with no wicks — it opens at the high and closes at the low.
Indicates strong selling pressure, often seen at the start of a bearish move.
Candlestick Patterns
Hammer

Small body at the top with a long lower wick.


Appears after a downtrend, showing buyers pushed price up — a sign of bullish reversal.
Candlestick Patterns
Inverted Hammer

Small body at the bottom with a long upper wick.


Also seen after a downtrend — shows buyers tried to take control, may hint at a bullish reversal.
Candlestick Patterns
Hanging Man

Looks like a Hammer but appears at the top of an uptrend.


Long lower wick shows selling pressure is increasing — can signal a potential reversal to the
downside.
Candlestick Patterns
Shooting Star

Small body at the bottom with a long upper wick, after an uptrend.
Shows that buyers tried to push up but failed, often a warning of a bearish reversal.
Candlestick Patterns
Doji

Open and close are almost the same — looks like a cross.
Shows market indecision — neither buyers nor sellers are in full control. Often seen before
reversals.

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