🕯️ Reading charts · Lesson 2/7
Key candle patterns
Doji, Hammer, Engulfing, Morning Star — and why location matters. · ⏱ 4 min
- Doji: open and close almost equal — no one won. After a long rise, be careful; after a long fall, a sign of hope.
- Hammer: small body on top, long lower wick — at the bottom of a fall, sellers pushed but buyers rescued. Same shape at a top = Hanging Man (warning).
- Shooting Star: long upper wick — at a top it means sellers are taking over.
- Bullish Engulfing: yesterday red, today a big green that covers it — buyers are back. The reverse is Bearish Engulfing.
- Morning Star (3 candles): big red, small indecision candle, big green — dawn after night. The reverse is Evening Star.
For learning only, not investment advice.