Candlestick Patterns Explained
Problem-based introduction
Beginners see many candlestick names and get confused which ones matter. This article explains high-probability candlestick patterns in simple Hinglish with GOLD (XAU/USD) chart examples.
Step-by-step explanation
- Single-candle patterns: Doji, Hammer, Shooting Star — what they signal.
- Two/three-candle patterns: Engulfing, Morning Star, Evening Star.
- How to validate: Confirm with volume, higher timeframe, or follow-through price.
Real trading logic (GOLD example)
Example: On daily XAU/USD, a bullish engulfing near support with rising volume gives a structured long setup — use stop below the pattern low and size per risk rules.
Image-based examples (mandatory)
Images show Hammer, Engulfing, Doji annotated on GOLD chart.
Common Mistakes
- Using single candle without context.
- Ignoring higher timeframe bias.
Pro Tips
- Wait for follow-through candle before treating pattern as trade signal.
- Combine pattern with support/resistance and volume.
Risk Warning
Candlestick patterns are probabilistic — always use stop-loss and proper sizing.
SEO FAQs
- 1. Candlestick patterns kya hai?
- Price action candles that indicate potential reversal or continuation when interpreted with context.
- 2. Kya patterns reliable hain?
- Context matters — use with trend and confirmation.
- 3. GOLD mein kaunse patterns common hain?
- Reversal patterns around major macro events and support levels.