What Are Candlestick Patterns?
A candlestick shows four data points: open, high, low, and close price. The body shows the range between open and close, while wicks show the extremes. Green/white candles indicate price increased; red/black candles indicate price decreased.
Bullish Patterns Found on NEPSE Today
Bullish Engulfing (17 stocks)
A large green candle completely engulfs the previous red candle. Currently seen in SJCL (Rs.358), API (Rs.348), SHEL (Rs.344), and LEC (Rs.268). These stocks also show strong uptrend signals with composite scores above 76.
Hammer (15 stocks)
A small body with a long lower wick, appearing after a downtrend. Found in KBL (Rs.246.4, score: 76.8) and PPCL (Rs.429, score: 74.7). The hammer signals potential bullish reversal.
Morning Star (7 stocks)
A three-candle reversal pattern. Currently visible in NBLD85 (Rs.1187, score: 78.7) and MPFL (Rs.730, score: 75.7). This is one of the strongest bullish reversal signals.
Bullish Marubozu (15 stocks)
A candle with no wicks, indicating very strong buying pressure. Found in NBF3 (Rs.10.05) and SFEF (Rs.10.31).
Bearish Patterns to Watch
Bearish Engulfing (36 stocks)
The most common bearish pattern today with 36 stocks showing this signal. A large red candle engulfs the previous green candle, suggesting selling pressure.
Shooting Star (8 stocks)
Small body with a long upper wick, signaling potential reversal from uptrend.
Evening Star (3 stocks)
Three-candle bearish reversal pattern.
How to Use Patterns for Trading
Never trade a candlestick pattern in isolation. Confirm with: (1) Volume - patterns on high volume are more reliable, (2) RSI - check if stock is overbought/oversold, (3) Support/Resistance - patterns at key levels are stronger, (4) Trend direction - trade in the direction of the larger trend.