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Price action

Candlestick Patterns

Every candle tells a short story about buyers and sellers. Learn the anatomy, the common patterns and — most importantly — their limits.

  • Body = open to close; wicks = extremes
  • Long wicks show rejection
  • Patterns need location and context
  • Short timeframes are noisy

Interactive candle anatomy

upper wick / highreal bodylower wick / low

Hammer

Long lower wick: lower prices were rejected before the close.

Diagram for education. Patterns have limited predictive power on short timeframes.

Reading a single candle

A candle shows open, high, low and close for one period. The body shows who won the period; the wicks show how far price travelled before being pushed back. Use the interactive viewer above to compare bullish and bearish anatomy.

Patterns worth knowing

PatternShapeWhat it suggests
DojiTiny body, wicks both sidesIndecision
HammerSmall body high, long lower wickLower prices rejected
Shooting starSmall body low, long upper wickHigher prices rejected
EngulfingSecond body covers firstShort-term control shift
Morning/Evening starThree-candle reversalMomentum change

Context first

A hammer in the middle of a range means little. The same hammer at a tested support zone, aligned with a higher-timeframe trend, is more informative — but still not a guarantee. Combine patterns with support and resistance and strict risk rules.

Candlestick Patterns articles

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Chart illustration for: Understanding Candlestick PatternsCandlestick Patterns

Understanding Candlestick Patterns

Learn how a single candlestick encodes open, high, low and close, how to read common patterns like the doji, hammer and engulfing candle, and why context matters more than the pattern itself.

3 min readQutoxe Signals Editorial Team

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