Technical· 6 min read
Candlesticks: Read a chart in 5 minutes
Every candle tells a story — Open, High, Low, Close. Learn bullish, bearish, doji and engulfing patterns.
Anatomy of a 5-day candle chart
Real market example
Real example: On 4-Jun-2024 (results day) HDFC Bank opened at ₹1520, sold off to ₹1465, then closed at ₹1512 — a classic hammer candle. Buyers stepped in at the low, signalling reversal. Over the next 5 sessions the stock rallied 8%.
- Green candle = close above open (buyers won the session).
- Red candle = close below open (sellers won).
- Long lower wick + small body = 'hammer', a reversal cue at support.
- Small body between big candles = 'doji', indecision — often a turning point.