← Trading Guides Simple definitions

Trading Glossary

Search common chart, candlestick, price-action, order, volume, liquidity and risk-management terms.

Results

Candlestick Patterns

4 terms

Candlestick Patterns

A candle where the open and close are at or very near the same price, leaving little or no real body.

Why it matters

A doji can show balance or hesitation between buyers and sellers, but its meaning depends heavily on location and context.

Example

A doji after a strong rally near resistance may deserve more attention than a doji in the middle of an ordinary sideways range.

Candlestick Patterns

A candle with a relatively small body near the top of its range and a long lower wick.

Why it matters

It can show rejection of lower prices, especially after a decline or near a meaningful support area.

Example

Price sells off sharply during the candle, then buyers push it back near the top of the range before the close.

Candlestick Patterns

A candle with a relatively small body near the bottom of its range and a long upper wick.

Why it matters

It can show rejection of higher prices, especially after an advance or near resistance.

Example

Price trades sharply higher during the candle but falls back before the close, leaving a long upper wick.

Candlestick Patterns

A two-candle pattern where the real body of the second candle covers the real body of the previous candle.

Why it matters

It can show a strong shift in short-term control, but the surrounding trend, level and volume matter more than the name alone.

Example

A large bullish candle that opens below and closes above the body of the previous bearish candle is commonly called a bullish engulfing pattern.