Algo Trading


Stock Market Blogs

How to Analyse Candlestick Charts for Intraday Trading? July 04 2022Stock Market Education

Visit Count: 1574

Candlestick Charts for Intraday Trading

Trading is an art and not everyone can be successful at it. To become a profitable trader it is important to learn about reading the price charts. A chart represents the two most important inputs for technical analysis; price and volume. The data on the chart helps to visualize the price of a stock going forward. The Candlestick chart is one of the most popular charts used by traders. It is known as a candlestick chart because, in this type of chart, the price graph is represented in the form of a series of candles.

What does Candlestick Chart Comprise of?

Below is the graphical representation of a candlestick chart. In this chart, the price movement is represented in the form of candles. It consists of red and green candles. Each candle tells about the opening, closing and trading price range in a particular time frame. A trader can find out the appropriate time for entry and exit using a candlestick chart.


Different Types of Candles

On a candle stick chart, you will find red and green candles. Each candle reveals the price range in a different time frame. The red candle represents the closing price after the end of a particular time period that is lower than the opening price. Whereas, the green candle represents the closing price after the end of a particular time period that is higher than the opening price.

Body of Candle

The portion of the candle highlighted in red or green colour represents the body of the candle. The area of the candle comprises of opening and closing prices. In the red candle, the upper body is the opening price and the lower body is the closing price. On the other hand, in the green candle, the upper body is the closing price and the lower body is the opening price.


Candlewick means the upper and lower shadow on the candle. It represents the price range of stock in particular time duration. When the upper wick in a red candle is short it means that the stock has opened near the high of the day. When the upper wick of the green candle is short it means that the stock has closed near the high of the day.

Candlestick Chart Patterns

The candlestick chart patterns are one of the best ways to identify sentiments towards a stock. It helps in understanding the bulls and bear sentiment. By reading the chart patterns the trader can find out the price at which demand or supply would be higher and much more. When a single candle has so much information, then the patterns of the candle can give much more information. Pattern identification can be done by comparing a candle with the preceding candle and the candle that comes after it. This makes it important to understand candle patterns appropriately and with the right understanding, you will be able to make better trades in the stock market.

Different Types of Chart Patterns

The candlestick chart patterns can be divided into two parts; bullish pattern and bearish pattern. Bullish pattern includes hammer pattern, inverse hammer pattern, morning star pattern, bullish engulfing pattern, etc. The patterns that are useful in the bearish market include shooting star pattern, evening star pattern, hanging man, etc.

Before starting your trading journey you need to go learn the different candlestick chart patterns. This will help you in becoming a successful intraday trader and make your journey in the stock market profitable.


Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




Indrendu Joshi. Email: Call : 0731-4797275

Investor grievance complaint :