Best Candlestick Patterns for Intraday Trading

Candlestick patterns are one of the most powerful tools in technical analysis for intraday traders. They help traders understand market sentiment, potential reversals, and continuation patterns. When used with other indicators like volume, moving averages, and support-resistance, candlestick patterns can significantly improve trading accuracy.

In this article, we will discuss the top candlestick patterns that every intraday trader should know.

1. Doji Candlestick

A Doji forms when the opening and closing prices are almost equal, showing indecision in the market.

Bullish Doji near support may indicate a reversal to the upside.

Bearish Doji near resistance may suggest a potential drop.

📌 Tip: Confirm Doji signals with volume and trend direction.

2. Hammer and Inverted Hammer

Hammer: Appears after a downtrend, with a small body and a long lower wick. It signals possible bullish reversal.

Inverted Hammer: Appears after a downtrend, indicating a potential bullish reversal if confirmed by the next candle

3. Engulfing Patterns

Bullish Engulfing: A small red candle followed by a large green candle covering the entire previous candle’s body.

Bearish Engulfing: A small green candle followed by a large red candle, indicating selling pressure.

4. Morning Star & Evening Star

Morning Star: A three-candle pattern that signals bullish reversal.

Evening Star: A bearish reversal pattern at the top of an uptrend.

5. Shooting Star

A bearish reversal pattern with a small body and a long upper wick, indicating that buyers tried to push prices higher but sellers regained control.

6. Marubozu

A Marubozu has no wicks, meaning the opening and closing are at the day’s high or low.

Bullish Marubozu: Strong buying momentum.

Bearish Marubozu: Strong selling momentum.

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📌 Key Learnings

Always confirm candlestick signals with volume and trend analysis.
Use multiple timeframes to validate intraday patterns.
Combine candlestick patterns with support and resistance for better accuracy.
Avoid trading on patterns alone during high volatility news events.

Common Mistakes to Avoid

⚠ Common Mistakes

Relying only on candlestick patterns without confirmation.
Forgetting to set stop-loss and take-profit levels.
Overtrading based on every small pattern formation.
Ignoring the broader market trend while trading intraday.

Final Thoughts

Candlestick patterns can be a trader’s best friend in intraday trading when used with proper risk management and technical confirmation. Master these patterns, backtest them, and combine them with your trading strategy for the best results.