{"id":2096,"date":"2026-09-18T04:52:51","date_gmt":"2026-09-18T04:52:51","guid":{"rendered":"https:\/\/entri.app\/explore\/?post_type=curriculum&#038;p=2096"},"modified":"2026-09-22T09:25:48","modified_gmt":"2026-09-22T09:25:48","slug":"candlestick-chart-basics","status":"publish","type":"curriculum","link":"https:\/\/entri.app\/explore\/stock-market\/candlestick-chart-basics\/","title":{"rendered":"Candlestick Chart Basics"},"content":{"rendered":"<p>Candlestick charts are one of the most popular ways to track price movement in the Indian stock market, commodities, and currency trading. For traders, these charts help visually understand how prices moved during a specific time period. This makes it easier for them to spot patterns and trends at a glance.<\/p>\n<h2><strong>Understanding Candlestick<\/strong><\/h2>\n<p>Each candlestick represents price movement over a chosen time frame \u2014 this could be 1 minute, 1 day, 1 week, or even 1 month, depending on the chart you select. A single candle shows four key price points:<\/p>\n<ul>\n<li><strong>Open<\/strong> \u2013 The price at the start of the period<\/li>\n<li><strong>High<\/strong> \u2013 The highest price reached during the period<\/li>\n<li><strong>Low<\/strong> \u2013 The lowest price reached during the period<\/li>\n<li><strong>Close<\/strong> \u2013 The price at the end of the period<\/li>\n<\/ul>\n<h2><strong>Parts of a Candle<\/strong><\/h2>\n<table>\n<tbody>\n<tr>\n<td><strong>Part\u00a0<\/strong><\/td>\n<td><strong>What it Shows\u00a0<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Body<\/td>\n<td>The range between the opening and closing price<\/td>\n<\/tr>\n<tr>\n<td>Upper Wick (Shadow)<\/td>\n<td>The highest price touched during the period<\/td>\n<\/tr>\n<tr>\n<td>Lower Wick (Shadow)<\/td>\n<td>The lowest price touched during the period<\/td>\n<\/tr>\n<tr>\n<td>Colour<\/td>\n<td>Indicates whether price rose or fell<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Understanding Colour Coding<\/strong><\/h2>\n<p>Colours make candles easy to read at a glance:<\/p>\n<ul>\n<li><strong>Green (or White) Candle<\/strong> \u2013 Closing price is higher than the opening price. This shows buying strength.<\/li>\n<li><strong>Red (or Black) Candle<\/strong> \u2013 Closing price is lower than the opening price. This shows selling pressure.<\/li>\n<\/ul>\n<p>Most Indian trading platforms and apps use green for a price rise and red for a price fall, so this colour system will feel familiar once you start looking at live charts.<\/p>\n<h2><strong>Why Traders Prefer this Chart Style<\/strong><\/h2>\n<ul>\n<li>Unlike a simple line chart, this chart style shows more detail<\/li>\n<li>Helps identify market sentiment, whether bullish or bearish quickly<\/li>\n<li>Useful for spotting reversal or continuation signals<\/li>\n<li>Works across all timeframes such as intraday, daily, weekly, monthly<\/li>\n<li>Commonly used across stocks, indices, currencies, and commodities<\/li>\n<\/ul>\n<h2><strong>Common Candlestick Patterns<\/strong><\/h2>\n<p>Beginners often start by learning a few simple, recognisable patterns:<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><strong>Pattern\u00a0<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>Appearance\u00a0<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>What Iit May Suggest\u00a0<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Doji<\/td>\n<td>Very small body, long wicks<\/td>\n<td>Indecision in the market<\/td>\n<\/tr>\n<tr>\n<td>Hammer<\/td>\n<td>Small body, long lower wick<\/td>\n<td>Possible bullish reversal<\/td>\n<\/tr>\n<tr>\n<td>Shooting Star<\/td>\n<td>Small body, long upper wick<\/td>\n<td>Possible bearish reversal<\/td>\n<\/tr>\n<tr>\n<td>Marubozu<\/td>\n<td>No wicks, full body<\/td>\n<td>Strong buying or selling<\/td>\n<\/tr>\n<tr>\n<td>Engulfing<\/td>\n<td>One candle fully covers the previous one<\/td>\n<td>Trend reversal signal<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Step by Step Process to Read a Candlestick Chart\u00a0<\/strong><\/h2>\n<ol>\n<li>Choose your timeframe, some examples are daily chart for swing trading, 5-minute chart for intraday.<\/li>\n<li>See the colour of each candle to judge buying or selling pressure.<\/li>\n<li>Check the body size \u2014 a bigger body usually means stronger momentum.<\/li>\n<li>Observe the wicks to see how much the price fluctuated during that period.<\/li>\n<li>Compare a few consecutive candles together, rather than reading just one candle at a time.<\/li>\n<\/ol>\n<h2><strong>A Simple Example<\/strong><\/h2>\n<p>Let\u2019s go through the example of a stock that opens the day at \u20b9100. During the day, it moves up to \u20b9108. Later it dips to \u20b998, and finally closes at \u20b9105.<\/p>\n<ul>\n<li>Open: \u20b9100<\/li>\n<li>High: \u20b9108<\/li>\n<li>Low: \u20b998<\/li>\n<li>Close: \u20b9105<\/li>\n<\/ul>\n<p>Since the close (\u20b9105) is higher than the open (\u20b9100), this candle would be shown in <strong>green<\/strong>, with the body stretching from \u20b9100 to \u20b9105, and wicks extending to \u20b9108 and \u20b998.<\/p>\n<h2><strong>Top 4 Tips to Keep in Mind for Beginners<\/strong><\/h2>\n<ul>\n<li>Start by practising on a demo or paper-trading account before using real money.<\/li>\n<li>Don&#8217;t rely on a single candle or pattern, instead combine it with other indicators and overall market context.<\/li>\n<li>Keep a track of trading volumes alongside candle patterns for stronger confirmation.<\/li>\n<li>Practice reading charts daily so that it helps enhance familiarity and confidence.<\/li>\n<\/ul>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>A candlestick chart is a simple yet powerful tool offering a clear visual snapshot of price action. Once you are thorough with the basic structure i.e. open, high, low, close, and colour, you can start recognising patterns. This also helps in building a stronger foundation for technical analysis in Indian markets.<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\">\n<p style=\"text-align: center;\"><b>Also Read<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/types-of-market-structure\/\" target=\"_blank\" rel=\"noopener\"><b>Types of Market Structure\u00a0<\/b><\/a><\/td>\n<td>\n<p style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/how-to-buy-and-sell-shares\/\" target=\"_blank\" rel=\"noopener\"><b>How to Buy and Sell Shares\u00a0<\/b><\/a><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/anatomy-of-a-candlestick\/\" target=\"_blank\" rel=\"noopener\"><b>Anatomy of a Candlestick\u00a0<\/b><\/a><\/p>\n<\/td>\n<td style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/types-of-candlestick-patterns\/\" target=\"_blank\" rel=\"noopener\"><b>Types of Candlestick Patterns<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/what-is-leverage-and-margin-trading\/\" target=\"_blank\" rel=\"noopener\"><b>What is Leverage and Margin Trading<\/b><\/a><\/td>\n<td>\n<p style=\"text-align: center;\"><a href=\"https:\/\/entri.app\/explore\/stock-market\/intraday-stock-selection-strategy\/\" target=\"_blank\" rel=\"noopener\"><b>Intraday Stock Selection Strategy<\/b><\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Candlestick charts are one of the most popular ways to track price movement in the Indian stock market, commodities, and currency trading. For traders, these charts help visually understand how prices moved during a specific time period. This makes it easier for them to spot patterns and trends at a glance. Understanding Candlestick Each candlestick [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":0,"template":"","meta":{"_acf_changed":false},"curriculum-category":[111,112,135],"custom_linking_tags":[],"class_list":["post-2096","curriculum","type-curriculum","status-publish","hentry","curriculum-category-stock-market","curriculum-category-stock-market-tutorials","curriculum-category-basics-of-technical-analysis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Candlestick Chart Basics<\/title>\n<meta name=\"description\" content=\"New to Trading? 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