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Nikita (SEBI RA)

28th Jul 2025 · SEBI-Registered Analyst

How to Read a Candlestick Chart in 5 Minutes

Every candlestick tells a story – of buyers, sellers, and the fight between them. 🔹 Green Candle = Buyers won that period 🔹 Red Candle = Sellers won 🔹 Long Wick = Rejection from one side 🔹 Doji = Indecision — wait for confirmation 🔹 Engulfing Candle = Power shift Bullish Engulfing = Big green candle covering previous red → Strong buying Bearish Engulfing = Big red covering green → Trend reversal ✅ Combine candlesticks with: Support/Resistance Volume Timeframe relevance (Daily > 15min) 📌 Example: At ₹300 support, stock forms a Hammer candle with volume → Bullish signal Next day: Breaks previous high → Confirmed entry

BAJAJ-AUTO
🧠 Don’t trade only on candle shape — always see context, location, and confirmation.

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