what is Candlestick Reversal Patterns in Nifty 50

Candlestick Reversal Patterns in Nifty 50 – Intraday Signals with Checklist

Mastering intraday trading in Nifty 50 involves recognizing key candlestick reversal signals. Here's a guide to the most powerful patterns along with when and how to trade them.

🔍 Key Reversal Candlestick Patterns:

1. Hammer (Bullish Reversal)

• Appears After: A clear downtrend
• Shape: Small body, long lower shadow (at least 2x body)
• Volume Spike? Yes, confirms the reversal
• Confirmation: Next candle should be bullish (green)
• 📌 Entry: Above hammer’s high
• 🛑 Stop Loss: Below hammer’s low
• 🎯 Target: Resistance zone / 1:2 Risk:Reward

2. Shooting Star (Bearish Reversal)

• Appears After: A strong uptrend
• Shape: Small body, long upper shadow
• Volume Spike? Ideally yes, showing rejection
• Confirmation: Next candle should be bearish (red)
• 📌 Entry: Below low of shooting star
• 🛑 Stop Loss: Above high of the candle
• 🎯 Target: Support level / 1:2 R:R

3. Inverted Hammer (Bullish Reversal)

• Appears After: A downtrend
• Shape: Small body, long upper wick
• Confirmation: Next candle must be green with good volume
• 📌 Entry: Above the inverted hammer high
• 🛑 Stop Loss: Below the low of the candle
• 🎯 Target: Next resistance / Fibonacci zone

4. Bearish Engulfing (Bearish Reversal)

• Appears After: An uptrend
• Shape: Large red candle that engulfs previous green one
• Volume Spike? Should confirm the reversal strength
• 📌 Entry: Below low of the engulfing candle
• 🛑 Stop Loss: Above its high
• 🎯 Target: VWAP / support / 1:2 or 1:3 R:R

📌 Pro Tip:

Always use these signals with confirmation tools like volume, VWAP, support/resistance zones, or RSI for better accuracy.

---

💡 Want More?

Bookmark this guide or share it with fellow traders. Let us know in the comments which signal works best for you!