Definition: A visual representation of price movement over a specific time period, showing open, close, high, and low. Example: A daily candlestick on BTC shows where price opened at 9 AM, closed at 9 AM the next day, and the highest and lowest points in between.

Definition: A candlestick with nearly identical open and close prices, signaling indecision. Example: A Doji at the top of an uptrend suggests buyers and sellers are in equilibrium—possible reversal ahead.

Definition: A bullish reversal candlestick with a small body at the top and a long lower wick, appearing at the bottom of a downtrend. Example: A Hammer forms after BTC drops to $25,000 support—buyers step in, and price rallies the next day.

Definition: A bearish reversal candlestick with a small body at the top and a long lower wick, appearing at the top of an uptrend. Example: A Hanging Man forms after ETH hits $2,000 resistance—sellers push back, and price drops the next day.

Definition: A two-candle bullish reversal pattern where a large green candle engulfs the previous red candle’s body. Example: After a downtrend, a small red candle is followed by a large green candle—buyers take control.

Definition: A two-candle bearish reversal pattern where a large red candle engulfs the previous green candle’s body. Example: After an uptrend, a small green candle is followed by a large red candle—sellers take control.

Definition: A three-candle bullish reversal pattern: long red candle, small-bodied candle (indecision), long green candle. Example: A Morning Star forms at BTC support—downtrend exhaustion, indecision, then bullish reversal.

Definition: A three-candle bearish reversal pattern: long green candle, small-bodied candle (indecision), long red candle. Example: An Evening Star forms at ETH resistance—uptrend exhaustion, indecision, then bearish reversal.

Definition: A bearish reversal candlestick with a small body at the bottom and a long upper wick, appearing at the top of an uptrend. Example: A Shooting Star forms after BTC rallies to $30,000—buyers push higher, but sellers reject the move.

Definition: A candlestick with little or no wicks, showing strong conviction in one direction. Example: A Bullish Marubozu (long green body, no wicks) signals strong buying pressure from open to close.

Definition: Additional price action (usually the next 1–3 candles) that validates a candlestick pattern signal. Example: A Hammer appears at support, and the next candle closes higher—confirmation of bullish reversal.

Definition: The thin lines above and below a candlestick body, showing the high and low prices during the period. Example: A long lower wick on a Hammer shows sellers pushed price down, but buyers rejected the move and closed higher.