Let’s make it simple
Two clouds may remind you of a dog and a dragon. Naming them does not control the weather. Candle-pattern names are useful labels, but the measured prices matter more than a memorable name.
Understand the idea
For a simple bullish engulfing body example, a DOWN body is followed by an UP body that reaches at least across the earlier body. Our exercise uses strict coverage: the second opens below the first close and closes above the first open. Wicks do not have to be covered.
A hammer-shaped candle has a small body near the upper part of its range and a long lower wick. A shooting-star-shaped candle has a small body near the lower part and a long upper wick. Conventional names also depend on preceding movement, and definitions vary.
Use a nickname after describing the shape and location. A named pattern can fail. A shape in a choppy middle area can mean something different from a similar shape after a sustained move near a previously observed zone.
Read exact candle values
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| A | 15 | 17 | 10 | 12 |
| B | 11 | 18 | 9 | 16 |
A small worked example
A opens at 15 and closes at 12. B opens at 11 and closes at 16. B covers A's body from 12 to 15. That tells us about the two bodies; it does not prove candle C will rise.
Your turn
Draw the two bodies with their wicks. Shade only the body that B covers. Write the open and close values beside each candle.
Compare your exercise with a model response
B spans 11-16, covering A's body 12-15. Covering both wicks is not required.
Pause & think
Check your understanding
Write an answer, then compare it with the explanation. This is self-study, not an automatically graded test.
Compare all three answers to unlock the review button.
Fictional examples. Education only; no pattern guarantees a result. Course information