5 Most Powerful Candlestick Patterns

Published : 15 May 2023

Doji Candle

When a stock's opening price and closing price are the same, dojis are formed. the upper and lower shadows are long which signifies an increase in volatility. The appearance of a doji during a bullish or bearish trend indicates a pause in the trend and that buyers and sellers in the market are unsure of how the price will move.

1. Doji 

Dragonfly Doji

When a stock's opening and closing prices are at their highest points of the day, a dragonfly doji is formed. The lower shadow of the dragonfly doji is long and there is no upper shadow. The appearance of a dragonfly doji during a bullish trend indicates that buyers are in control of the price movement, while its appearance during a bearish trend is a reliable sign of a reversal signal.

2. Dragonfly Doji  

Gravestone Doji

When a stock's opening and closing prices are at their lowest points of the day, a gravestone doji is formed. The pattern has a lengthy upper shadow but no lower shadow. The sellers are in control of the price movement in this pattern, which is a classic sign of a bearish trend. When the gravestone appears during a bullish trend, it can be interpreted as a reversal signal.

3. Gravestone Doji

Spinning top 

When the closing price is relatively close to the opening price, a spinning top forms. The appearance of a spinning top during a trend denotes a loss of momentum and may be read as a sign of a trend reversal. In order to confirm the direction of the market, it is therefore advised to combine this pattern with the others when analyzing candlestick charts for Indian stocks.

4. Spinning top  


The hammer is a single candlestick pattern that has a long lower shadow and a short body on the top of the candle. The hammer is frequently used to indicate a change in trend from bearish to bullish.

5. Hammer