# 4 Basic Candlestick Patterns You Need to Know Before Trading!

By [RuangRama](https://paragraph.com/@ruangrama) · 2025-05-04

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Before you start buying or selling, it's best to get familiar with these 4 basic candlestick patterns. These patterns are commonly used by traders to read market direction and spot potential opportunities. Let’s take a look:

1.  Bullish Engulfing
    
    This pattern occurs when a green candle completely engulfs the previous red candle. What does this mean? It signals potential upward movement as buyers are gaining control of the market.
    
2.  Bearish Engulfing
    
    The opposite of bullish, this pattern occurs when a large red candle engulfs the previous green one. It signals that sellers are becoming stronger, and prices might go down.
    
3.  Doji
    
    A Doji has a small body with long wicks on either side, often looking like a plus sign or cross. This indicates market indecision, where neither buyers nor sellers dominate. It often signals a potential reversal or major movement.
    
4.  Hammer
    
    The Hammer looks like a small body with a long wick at the bottom. It typically appears during a downtrend and can signal a potential reversal to an uptrend, showing that sellers have lost strength.
    

So, those are the 4 basic candlestick patterns you should understand before diving deeper into trading. For more tips on crypto, candlestick patterns, and light investment advice, don’t forget to follow @ruangrama! You’ll find easy-to-digest educational content to guide you through your financial journey.

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*Originally published on [RuangRama](https://paragraph.com/@ruangrama/4-basic-candlestick-patterns-you-need-to-know-before-trading)*