Lesson 5 ✅ 35 Powerful Candlestick Patterns || Bullish Patterns

Summary

The lesson presents candlestick patterns as a way to read price action—the interaction of demand and supply—and identify possible reversals. The instructor stresses that patterns are not guarantees: a setup can fail, especially near an opposing support or resistance level.

Patterns and Trading Framework

• Bullish engulfing: A green candle’s body fully covers the preceding red candle’s body. The instructor favors looking for it near support, after a decline. One example uses an entry near the pattern, a stop-loss around the setup’s low, and a target-to-risk ratio of 1:3, potentially 1:4.
• Hammer: A small body with a lower wick at least about twice the body’s size and little or no upper wick. The body’s color is said not to be essential. A hammer near support after a downtrend may signal a reversal, but does not confirm one by itself.
• Inverted hammer: A small body with an upper wick at least about twice the body’s size and little or no lower wick. The instructor treats it as a possible bullish reversal signal after a decline.
• Morning star: A three-candle reversal pattern following a downtrend: a bearish candle, a doji or small indecision candle, then a bullish candle.
• Doji / opening-range idea: A doji represents indecision. For the first 15-minute candle—particularly after a gap-up—the instructor suggests marking its high and low and watching for a breakout, preferably with a retest. He refers to this as a “9:30 strategy.”
• Piercing pattern: A bearish candle is followed by a candle that opens below the prior close and closes above roughly 50% of the bearish candle’s body.
• Three white soldiers: Three consecutive bullish candles, ideally with limited wicks, each advancing beyond the prior candle. The instructor notes that this pattern may be less clear on shorter timeframes or when the candles have prominent wicks.
• Bullish harami: A large bearish candle followed by a smaller bullish candle whose open and close fall within the first candle’s body.
• Three inside up: A bullish harami followed by a bullish confirmation candle closing above the prior candles’ highs.

The instructor says bullish reversal patterns are more relevant near support or after a decline, while bearish patterns should be sought near resistance or after a rise. He cautions that bullish signals near resistance, or bearish signals near support, may fail.

Timeframes and Execution

Suggested chart intervals include 1, 3, 5, 15, and 30 minutes, and 1 hour, as well as seconds-based charts for scalping.

The instructor recommends using larger timeframes to identify the broader pattern and trend, then smaller timeframes—such as 3 or 5 minutes—for entries and execution. He describes:

• Scalping as using roughly 1–3-minute charts
• Swing trading as looking across days or weeks
• Positional trading as using weekly or longer-term charts

He emphasizes considering trend, support and resistance, and stop-loss placement alongside candlestick signals—not trading a pattern in isolation. A rising sequence of higher highs and higher lows is described as a channel or uptrend structure.

Options, Markets, and Figures Mentioned

The instructor says CE positions are for an upward trend and PE positions for a downward trend. He previews a later lesson on ATM, ITM, and OTM options and strike selection.

He discusses weekly, monthly, and quarterly expiries, and says options are available across the year. Example markets and assets include Nifty 50, Bank Nifty, S&P 500, the US 100/Nasdaq index, HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank, gold, crude oil, currencies, Bitcoin, and Solana. He also mentions stocks, futures and options, commodities, and MCX.

The instructor cites examples dated 29 November 2023, including a claimed approximately 550-point Bank Nifty move and an example of an approximately 450-point decline following a doji-range break. These are presented as historical chart illustrations, not independently verified performance.

He mentions EMA 21, EMA 3, and EMA 30, but the reference is unclear in the subtitles, and no complete EMA method is explained.

Cautions and Disclosures

The instructor says patterns may fail and that stop-losses can be hit. He cautions viewers against trading options before understanding the course material and strike selection. No explicit “not financial advice” disclaimer is stated.

The lesson also includes a promotion for opening a Dhan account to access a TradingView premium subscription.

Presenters and Sources

The presenter is an unnamed instructor from Dil Se Traders. Pushkar Raj Thakur is mentioned in connection with a candlestick-pattern book.