CANDLE STICK PATTERNS

Let's Talk About Trade..!!

"This eBook is a part of the Trading Mastery Bundle, a complete

guide to mastering trading from basics to advanced levels.”
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📝 Subtitle:
"Learn How to Read Market Trends & Improve Your Trading Strategy"

👤 Author Name: Aniket

📅 Published On: February 2025
📊 (Background Suggestion)
Ek clean white background with candlestick chart graphics.
Green & Red candlesticks (Bullish & Bearish) to show trading theme.

📊 About This Book:

"The financial markets speak a language of their own, and candlestick patterns are the key to
decoding it. This book is your ultimate guide to understanding price action, predicting market
trends, and making confident trading decisions. Whether you're a beginner or an experienced
trader, mastering these patterns will give you the edge you need to navigate the markets with
precision and success."

📌 What You’ll Discover:

✅ The Psychology Behind Candlestick Patterns
✅ Proven Strategies for Bullish & Bearish Reversals
✅ How to Use Candlesticks with Support & Resistance
✅ Risk Management Secrets for Long-Term Success
✅ Advanced Trading Techniques Used by Professionals
🔹 "Success in trading isn’t about luck—it’s about strategy, discipline, and knowledge. Let this
book be your roadmap to mastering the markets!"

🔥 Are you ready to trade smarter? Let’s begin!

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Table of Contents :-

1. Introduction to Candlestick Patterns

2. Types of Candlestick Patterns

3. How to Use Candlestick Patterns in Trading?

4. Risk Management in Candlestick Trading

5. Common Mistakes in Candlestick Trading

6. Advanced Candlestick Strategies

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Chapter 1: Introduction to Candlestick Patterns

Candlestick patterns trading me ek powerful tool hai jo price action ko samajhne me madad
karta hai. Ye patterns buyers aur sellers ke psychology ko reflect karte hain aur future price
movement ka andaza lagane me madad karte hain.

📌 Candlestick Basics :-
Body: Yeh candlestick ka main part hota hai, jo open aur close price ko dikhata hai.

Wick (Shadow): Yeh high aur low price levels ko represent karta hai.

Color: Green (Bullish): Jab close price open price se zyada hota hai.
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Red (Bearish): Jab close price open price se kam hota hai.

📌 Candlestick Formation :-
Har candlestick ek specific timeframe ka representation hoti hai. Example:

1-minute candlestick ek minute ka price movement dikhati hai.

1-hour candlestick ek ghante ka price movement dikhati hai.

Daily candlestick ek din ka price movement dikhati hai.

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Chapter 2: Types of Candlestick Patterns

Candlestick patterns 3 categories me divide hote hain:

1️⃣ Single Candlestick Patterns

2️⃣ Double Candlestick Patterns
3️⃣ Triple Candlestick Patterns

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📌 1. Single Candlestick Patterns

✓ 1. Doji (Indecision)

🔹 Kya Hai?

Yeh Open aur Close price lagbhag same hoti hai.

Upper aur lower wicks honi chahiye.

🔹 Kaam Kya Hai?

✅ Market me confusion hai, buyers aur sellers fight kar rahe hain.
✅ Agar support/resistance pe aaye toh trend reversal ka signal de sakta hai.
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✓ 2. Hammer (Bullish Reversal)

🔹 Kya Hai?

Chhoti body, lambi lower wick, upar chhoti ya koi wick nahi.
Price niche jaake wapas upar close hota hai.

🔹 Kaam Kya Hai?

✅ Downtrend ke baad bullish reversal ka signal deta hai.
✅ Buyers market me wapas aane lage hain.

✓ 3. Inverted Hammer (Bullish Reversal)

🔹 Kya Hai?
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Chhoti body, lambi upper wick, neeche chhoti ya koi wick nahi.

🔹 Kaam Kya Hai?

✅ Agar support level pe ban raha hai toh uptrend aa sakta hai.
✅ Confirmation ke liye next candle bullish honi chahiye.

✓ 4. Shooting Star (Bearish Reversal)

🔹 Kya Hai?

Chhoti body, lambi upper wick, neeche chhoti ya koi wick nahi.
Price upar jaake wapas neeche close hota hai.

🔹 Kaam Kya Hai?

✅ Uptrend ke baad bearish reversal ka signal deta hai.
✅ Sellers market me strong ho rahe hain.
---
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✓ 5. Spinning Top (Indecision Candle)

🔹 Kya Hai?

Chhoti body hoti hai (Open aur Close price lagbhag same hoti hain).
Upper aur Lower wicks lambi hoti hain.
Buyers aur Sellers dono fight kar rahe hote hain, lekin koi bhi dominate nahi kar raha.

🔹 Kaam Kya Hai?

✅ Market me indecision (confusion) dikhata hai.
✅ Agar support level pe bane, toh bullish reversal ho sakta hai.
✅ Agar resistance level pe bane, toh bearish reversal ho sakta hai.
✅ Confirmation ke liye agli candle ka wait karna zaroori hai.
📌 Tip:
Agar next candle bullish hoti hai, toh uptrend continue ho sakta hai.
Agar next candle bearish hoti hai, toh downtrend start ho sakta hai.
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📌 2. Double Candlestick Patterns

✓ 1. Bullish Engulfing (Strong Buy Signal)
🔹 Kya Hai?

Pehla candle bearish (red) hota hai.

Doosra candle bullish (green) hota hai aur poora pehle candle ko engulf (cover) kar leta hai.
Yeh pattern buyers ki strong entry dikhata hai.

🔹 Kaam Kya Hai?

✅ Downtrend ke baad bullish reversal ka strong signal deta hai.
✅ Agar support level pe bane, toh confirmation aur strong hota hai.
✅ High volume ke saath aaye, toh uptrend continue hone ka chance badhta hai.
✅ Agar next candle bhi bullish ho, toh strong buying confirmation milta hai.
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✓ 2. Bearish Engulfing (Strong Sell Signal)

🔹 Kya Hai?

Pehla candle bullish (green) hota hai.

Doosra candle bearish (red) hota hai aur poora pehle candle ko engulf (cover) kar leta hai.
Yeh pattern sellers ki strong entry dikhata hai.

🔹 Kaam Kya Hai?

✅ Uptrend ke baad bearish reversal ka strong signal deta hai.
✅ Agar resistance level pe bane, toh confirmation aur strong hota hai.
✅ High volume ke saath aaye, toh downtrend continue hone ka chance badhta hai.
✅ Agar next candle bhi bearish ho, toh strong selling confirmation milta hai.
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✓ 3. Tweezer Tops (Reversal Patterns)

🔹 Kya Hai?

Tweezer Tops aur Tweezer Bottoms double candlestick reversal patterns hote hain.
Yeh pattern tab banta hai jab 2 candles ka high ya low same hota hai, jo market me strong
resistance ya support dikhata hai.

🔹 Kaam kya hai?

✅ Uptrend ke baad form hota hai.
✅ Dono candles ka high same hota hai, jo strong resistance dikhata hai.
✅ Pehla candle bullish hota hai, doosra bearish hota hai.
✅ Agar resistance level par bane, toh downtrend shuru ho sakta h
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✓ 4. Tweezer Bottoms (Bullish Reversal)

🔹 Kya Hai?

Tweezer Bottoms ek bullish reversal pattern hai jo downtrend ke baad banta hai.

Do candles ka low same hota hai, jo market me strong support dikhata hai.

Pehla candle bearish (red) hota hai, doosra candle bullish (green) hota hai.

🔹 Kaam Kya Hai?

✅ Downtrend ke baad bullish reversal ka signal deta hai.
✅ Agar support level pe bane, toh buying ka strong chance hota hai.
✅ **Agar high volume ke saath bane, toh confirmation aur strong hota hai.
📌 3. Triple Candlestick Patterns
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✓ 1. Morning Star (Bullish Reversal)

🔹 Kya Hai?

Morning Star ek bullish reversal pattern hai jo downtrend ke baad banta hai.

3 candles ka combination hota hai:

1️⃣ Pehla candle bearish (red) hota hai – Yeh dikhata hai ki sellers ab tak control me hain.
2️⃣ Doosra candle chhoti body ka hota hai (red ya green, Doji bhi ho sakta hai) – Yeh dikhata hai
ki market me indecision (confusion) hai.
3️⃣ Teesra candle bullish (green) hota hai – Yeh confirm karta hai ki buyers ne market me control
le liya hai.

🔹 Kaam Kya Hai?

✅ Downtrend ke baad bullish reversal ka strong signal deta hai.
✅ Agar support level pe bane, toh buying ka aur strong chance hota hai.
✅ Agar high volume ke saath bane, toh confirmation aur strong hota hai.
✅ Agar teesra bullish candle ka close pehle bearish candle ke halfway tak ho, toh aur bhi
strong signal hota hai.
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✓ 2. Evening Star (Bearish Reversal)

🔹 Kya Hai?

Evening Star ek bearish reversal pattern hai jo uptrend ke baad banta hai.
3 candles ka combination hota hai:
1️⃣ Pehla candle bullish (green) hota hai – Yeh dikhata hai ki buyers control me hain.
2️⃣ Doosra candle chhoti body ka hota hai (red ya green, Doji bhi ho sakta hai) – Yeh dikhata hai
ki market me indecision (confusion) hai.
3️⃣ Teesra candle bearish (red) hota hai – Yeh confirm karta hai ki sellers ne market me control le
liya hai.

🔹 Kaam Kya Hai?

✅ Uptrend ke baad bearish reversal ka strong signal deta hai.
✅ Agar resistance level pe bane, toh selling ka aur strong chance hota hai.
✅ Agar high volume ke saath bane, toh confirmation aur strong hota hai.
✅ Agar teesra bearish candle ka close pehle bullish candle ke halfway tak ho, toh aur bhi
strong signal hota hai.
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✓ 3. Three White Soldiers (Strong Bullish Continuation)

🔹 Kya Hai?

Three White Soldiers ek bullish continuation pattern hai jo downtrend ke baad banta hai.
3 consecutive bullish (green) candles hoti hain, jo dikhati hain ki buyers ne market me control le
liya hai.
Har candle previous candle ke high ke upar close hoti hai, aur wicks chhoti hoti hain.

🔹 Kaam Kya Hai?

✅ Downtrend ke baad strong bullish trend ka confirmation deta hai.
✅ Agar support level pe bane, toh buying ka aur strong chance hota hai.
✅ Agar high volume ke saath bane, toh confirmation aur strong hota hai.
✅ Agar third candle bhi bullish ho aur uska close previous high ke upar ho, toh aur bhi strong
signal hota hai.
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✓ 4. Three Black Crows (Strong Bearish Continuation)

🔹 Kya Hai?

Three Black Crows ek bearish continuation pattern hai jo uptrend ke baad banta hai.
3 consecutive bearish (red) candles hoti hain, jo dikhati hain ki sellers ne market me control le
liya hai.
Har candle previous candle ke low ke neeche close hoti hai, aur wicks chhoti hoti hain.

🔹 Kaam Kya Hai?

✅ Uptrend ke baad strong bearish trend ka confirmation deta hai.
✅ Agar resistance level pe bane, toh selling ka aur strong chance hota hai.
✅ Agar high volume ke saath bane, toh confirmation aur strong hota hai.
✅ Agar third candle bhi bearish ho aur uska close previous low ke neeche ho, toh aur bhi
strong signal hota hai.

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Chapter 3: How to Use Candlestick Patterns in

Trading?

Candlestick patterns ka sahi use karna bohot zaroori hai, warna fake signals se loss ho sakta
hai. Is chapter me hum sikhenge ki in patterns ka real trading me kaise use karein.

📌 1. Trend Pehle Identify Karna Zaroori Hai

Candlestick patterns tabhi sahi kaam karte hain jab hum unhe trend ke context me dekhein.
Uptrend me bullish patterns zyada powerful hote hain.
Downtrend me bearish patterns strong signals dete hain.

👉 Example: Agar "Bullish Engulfing" pattern downtrend ke baad aata hai, toh yeh reversal ka
strong signal ho sakta hai ---
📌 2. Support & Resistance Levels Ke Saath Combine Karna
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Candlestick patterns ko support aur resistance levels ke saath use karna chahiye taaki
confirmation mile.
Support level pe bullish patterns aur resistance level pe bearish patterns strong signals dete
hain.

👉 Example: Agar ek Hammer pattern support level ke paas banta hai, toh yeh ek strong buy
signal ho sakta hai.-

📌 3. Volume Ka Dhyan Rakhna

Agar candlestick pattern ke saath high volume aata hai, toh signal aur strong hota hai.
Low volume ke saath patterns weak signals de sakte hain.
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👉 Example: Agar Morning Star pattern ke saath high volume hota hai, toh confirmation strong
hota hai ki market bullish ho sakta hai.

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📌 4. Indicators Ke Saath Confirm Karna

Candlestick patterns ko sirf akela use mat karo, hamesha kisi indicator ke saath confirm karo:

✅ Moving Averages:
50-day aur 200-day moving average ke upar bullish patterns kaafi strong signals dete hain.
Agar price moving average ke upar close hota hai, toh uptrend strong ho sakta hai.

✅ RSI (Relative Strength Index):

RSI 30 ke neeche ho aur bullish pattern aaye, toh buy signal ho sakta hai.
RSI 70 ke upar ho aur bearish pattern aaye, toh sell signal ho sakta hai.

✅ MACD (Moving Average Convergence Divergence):

Agar MACD bullish crossover dikhata hai aur bullish candlestick pattern aata hai, toh
confirmation strong hota hai.

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🔥 Pro Tips:
✅ Hamesha confirmation ka wait karo.
✅ Sirf ek candlestick pattern dekh ke trade mat lo.
✅ Risk management ka dhyan rakho, stop-loss lagao.
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🎯 Conclusion
Agar candlestick patterns ko sahi tareeke se trend, support-resistance, volume aur indicators ke
saath use kiya jaye, toh trading me accuracy badh sakti hai. Lekin hamesha yaad rakho, market
me 100% guarantee kuch bhi nahi hoti, isliye proper risk management zaroori hai.

---
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Chapter 4: Risk Management in Candlestick Trading

Trading sirf patterns dekh ke nahi hoti, balki risk manage karna sabse zaroori hota hai.

📌 1. Stop-Loss Lagana Zaroori Hai

Bullish trade me stop-loss: Pattern ke low ke neeche.
Bearish trade me stop-loss: Pattern ke high ke upar.

Example: Agar Hammer pattern support pe ban raha hai, toh stop-loss Hammer ke low ke
neeche rakhna chahiye.

📌 2. Risk-to-Reward Ratio
Hamesha minimum 1:2 ka risk-to-reward ratio rakho.
Matlab agar ₹100 ka stop-loss hai, toh ₹200 ka target hona chahiye
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Agar risk-reward ratio sahi nahi hai, toh trade avoid karna better hai.

📌 3. Position Sizing
Ek trade me total capital ka sirf 1-2% risk lena chahiye.
Zyada lot size mat use karo, warna ek bada loss ho sakta hai.

Example: Agar ₹50,000 capital hai, toh ek trade me ₹500-₹1000 se zyada risk nahi lena
chahiye.

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Chapter 5: Common Mistakes in Candlestick Trading

Bohot log candlestick patterns galat use karte hain, jisse losses hote hain. Yeh common
mistakes avoid karni chahiye:

❌ 1. Sirf Candlestick Pattern Pe Trade Karna

Candlestick pattern + Support-Resistance + Indicator ka confirmation zaroori hai.

❌ 2. Fake Breakouts Pe Trade Karna

Agar volume low hai aur breakout ho raha hai, toh fake breakout ho sakta hai.
❌ 3. Stop-Loss Na Lagana
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Market unpredictable hai, stop-loss hamesha lagao.

❌ 4. Overtrading

Har pattern pe trade mat lo, sirf high-probability trades pe focus karo.
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Chapter 6: Advanced Candlestick Strategy

📌 1. Trend Reversal Strategy

Bullish Engulfing + RSI 30 ke neeche = Strong Buy Signal
Bearish Engulfing + RSI 70 ke upar = Strong Sell Signal

📌 2. Support & Resistance Bounce Strategy

Hammer ya Doji agar support pe ban raha hai = Buy Confirmation
Shooting Star agar resistance pe ban raha hai = Sell Confirmation

📌 3. Moving Average Strategy

50-day aur 200-day Moving Average crossover ke saath candlestick pattern ka confirmation
strong hota hai.

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🎯 Final Thoughts
✅ Candlestick patterns powerful tool hai, lekin bina confirmation use karne se losses ho sakte
✅ Support-Resistance, Volume aur Indicators ke saath combine karke accuracy badh sakti hai.
hain.

✅ Risk management sabse important hai.

✅ Emotions ko control me rakhna zaroori hai, warna overtrading aur losses ho sakte hain.
—
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📌 The End: Your Trading Journey Continues

Congratulations! 🎉 Aapne Candlestick Patterns aur Smart Trading Strategies ko samajh liya
hai. Lekin yaad rakho, trading ek continuous learning process hai.

📌 What’s Next?
Aapke trading journey ko aur strong banane ke liye, ye steps follow karein:

1️⃣ Demo Trading Karein: Real money lagane se pehle demo account pe practice karein.
2️⃣ Trading Journal Maintain Karein: Har trade ko note karein aur apni mistakes se sikhein.
3️⃣ Continuous Learning: Market hamesha change hota hai, isliye naye strategies aur concepts
seekhna zaroori hai.
4️⃣ Join a Trading Community: Jahan experienced traders se discussion karke aur knowledge le
sakein.

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📌 Thank You! 🙏
Aapne is guide ko padhne me apna samay diya, iske liye shukriya! Agar yeh book aapke kaam
aayi ho, toh feedback zaroor dein.

📩 For Queries & Updates:

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"Trade Smart, Stay Disciplined, and Keep Learning!" 🚀🔥

💡 Final Thought:
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"Trading ek art hai jo patience, strategy aur discipline se

master hota hai. Seekhna kabhi band mat karo, kyunki
market hamesha evolve hota hai!"

"If you like this book, share it with your friends.”