Lesson 6 of 123:543 Sources
Candlestick patterns: Doji, Hammer, Engulfing, Pin Bar
Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
Candle patterns describe a short battle between buyers and sellers.
- Doji: open equals (or nearly equals) close — indecision.
- Hammer: after a clear downtrend, small body at the top and a lower shadow at least twice the body.
- Shooting star: the mirror image after an uptrend. Both are forms of the “pin bar”: a long tail pointing at a rejected price.
- Engulfing: the second body fully engulfs the first, after a trend in the opposite direction.
- Context first: location, shape, then confirmation from the next candle; stop beyond the tail. Patterns are indications, not absolute rules.
Quick check
Three questions. Pick an answer to see why.
1.A doji is a candle where:
2.In the lesson, the hammer opened at 1.1070, fell to 1.1030 and closed at 1.1080. Its lower shadow vs. body is:
3.Which statement about candle patterns is correct?
Sources
Every fact in this lesson is backed by the sources below.
- 1.CQG Integrated Client Help — Candlestick FormationsDoji (open = close), Hammer, Shooting Star and Engulfing definitions, including trend requirement and shadow ≥ 2× body
- 2.CME Group Education — Chart types: candlestick, line, barCandle body and wick definitions
- 3.CME Group Education — Technical patterns: reversalsPatterns are only indications and not absolute rules
Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.