6. Multi-candle patterns
Single candles are words. Multi-candle patterns are short sentences – they show how control shifted from one side to the other over two or three sessions.
6.1 Engulfing – a takeover
Bullish engulfing (after a fall): a small red candle, then a big green candle whose body completely covers the red body. In one session, buyers erased all of the sellers’ work and more.
Bearish engulfing (after a rise): a small green candle, then a big red candle that swallows it. Sellers took over.
The bigger the second candle, and the stronger the volume, the more meaningful the takeover.
6.2 Harami / inside bar – a pause
"Harami" means pregnant in Japanese. A big candle followed by a small candle whose whole body sits inside the first body.
Many traders use a similar idea called the inside bar: the second candle’s full range (high to low) stays inside the first candle’s range. It says the market is pausing. Watch which side breaks first – above the big candle’s high, or below its low.
6.3 Piercing line and dark cloud cover
Piercing line (after a fall): a red candle, then a green candle that opens lower but closes above the middle of the red body. Buyers fought back strongly.
Dark cloud cover (after a rise): a green candle, then a red candle that opens higher but closes below the middle of the green body. Like a dark cloud covering a sunny day.
6.4 Morning star and evening star – three-candle turns
Morning star (at a bottom): 1. A big red candle – sellers in control. 2. A small candle (often a doji) – sellers are tiring, indecision. 3. A big green candle closing well into the first candle’s body – buyers take over.
Like night turning into morning.
Evening star is the mirror image at a top: big green, small candle, big red.
Picture a tug of war on Republic Day at school. Team Red is pulling Team Green steadily towards the line (the fall). Suddenly Team Red stops moving (the small candle – they are tired). Then Team Green pulls hard and wins back ground (the big green candle).
That is a morning star. You don’t need to remember the name – just picture the rope.
6.5 Practice
No pattern works every time. A bullish engulfing in a strong downtrend often fails. Use patterns at important levels, in the direction of the bigger trend, with a stop-loss. That is how you turn patterns into an edge.
Ek practical tip: mark the high and low of the pattern on your chart. For bullish patterns, the low is where you are wrong. For bearish patterns, the high is where you are wrong. Ab tumhare paas plan hai, sirf naam nahi.
A green candle swallowing the previous red body after a fall is a bullish engulfing – buyers took over.
An inside bar is a pause. The break of its mother candle’s high or low often shows the next direction.
Evening star: big green, small candle, big red – control shifting from buyers to sellers.
- Engulfing patterns show a takeover in one session.
- Harami / inside bar shows a pause – trade the breakout of the mother candle.
- Piercing line and dark cloud cover show a strong fightback into the previous body.
- Morning star and evening star are three-candle turning patterns.
- Use patterns at key levels, with the bigger trend, and always with a stop-loss.
- Ek line mein: Do-teen candles mil ke kahani sunate hain ki control kis taraf shift hua – par level aur trend ke bina woh adhoori hai.