When I first started trading, charts looked like a foreign language to me.
Red bars, green bars, wicks, shadows — everything was confusing. I thought:
“How can anyone make money if the charts themselves don’t make sense?”
But later I learned one truth:
Candlestick charts are the language of the market. Once you understand them, trading becomes much easier.
In this article, I’ll explain candlestick basics, why they matter, and how beginners can start reading them.
Table of Contents
ToggleWhat Is a Candlestick Chart?
A candlestick chart is a type of chart used in trading to show price movement of a stock during a certain period.
Each candle represents four pieces of information:
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Open price – the price at which trading started
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Close price – the price at which trading ended
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High price – the highest price during the period
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Low price – the lowest price during the period
How to Read a Candlestick
Candlesticks have two main parts:
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Body – Shows the difference between open and close
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Green/white body = Close > Open (price went up)
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Red/black body = Close < Open (price went down)
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Wicks (Shadows) – The thin lines above and below the body
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Top wick = highest price reached
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Bottom wick = lowest price reached
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Example
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Open = ₹100
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Close = ₹110 → Green candle
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High = ₹112 → Top wick
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Low = ₹98 → Bottom wick
This candle shows strong bullish movement because the price closed higher than it opened.
Why Candlestick Charts Are Important
Candlestick charts are popular because they:
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Show clear price trends
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Help identify market sentiment (bullish or bearish)
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Are easy to combine with indicators
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Help make better entry and exit decisions
Even beginners can learn them with a little practice.
Basic Candlestick Patterns Every Beginner Should Know
Here are a few simple patterns that are easy to identify:
1. Doji
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Open and close prices are almost the same
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Shows indecision in the market
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Often appears before a trend reversal
2. Hammer
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Small body, long lower wick
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Appears after a downtrend
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Signals possible bullish reversal
3. Shooting Star
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Small body, long upper wick
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Appears after an uptrend
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Signals possible bearish reversal
4. Bullish Engulfing
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A small red candle followed by a bigger green candle
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Shows strong buying pressure
5. Bearish Engulfing
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A small green candle followed by a bigger red candle
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Shows strong selling pressure
Personal Experience With Candlestick Charts
When I first tried trading without understanding candlesticks:
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I entered trades blindly
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I relied only on tips
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I got frustrated with unpredictable price movements
Once I learned candlestick basics:
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I could identify market sentiment
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I could time entries and exits better
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My confidence increased
Even simple patterns like hammer or doji made my trades much easier to manage.
Tips for Beginners
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Start Small – Focus on just 2–3 patterns first
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Combine With Other Analysis – Use support/resistance with candlesticks
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Practice on Paper Trading – Don’t risk real money until confident
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Keep a Journal – Track which patterns work and which don’t
Consistency matters more than trying to learn all patterns at once.
Common Mistakes Beginners Make
❌ Ignoring candle wicks
❌ Overcomplicating patterns
❌ Relying solely on candlesticks without other indicators
❌ Not considering overall trend
Candlesticks are powerful, but they are only one part of trading.
Final Thoughts
Candlestick charts are like a map of the market’s mind.
Understanding them gives you:
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Clearer view of price movements
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Insight into market sentiment
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Confidence in trading decisions
Start with the basics, practice regularly, and gradually expand your knowledge.
Even a beginner can make better trading decisions just by learning candlestick charts properly.
Disclaimer
This article is for educational purposes only.
This is not financial or investment advice.