Hammer, Inverted Hammer and Engulfing pattern

 Price action in the stock market is a famous method used by Intraday traders specifically scalpers. Candlestick patterns assist these scalpers in predicting short term market moves to earn profits in trading. Among the most reliable and widely used are the Hammer, Inverted Hammer, and Engulfing patterns.

Learning Technical Analysis and spotting these pattern correctly is a must, to increase probability of winning trades.

🛠️ What is the Hammer Candlestick?
The Hammer is a bullish reversal pattern that typically appears after a downtrend. Consisting of a small read body at the top with a long lower shadow giving a buy signal to the analyst. It appears after a downtrend with a long lower shadow(almost 2 times the body) and little or no shadow at all.

NOTE : Trend is reversing and buyers are gaining control.

🔄 Inverted Hammer
An Inverted Hammer also forms after a downtrend but has a small body at the bottom and a long upper shadow. This shows that buyers tried to push the price up but sellers resisted. However, it's a bullish signal if confirmed with a strong green candle the next day.

Key Traits:

Small body, long upper wick
Appears at the bottom of a downtrend
Needs confirmation

👨‍🏫 Covered extensively in our Intra-Day Trading Course in Dehradun, this pattern is a go-to for spotting early reversals with added risk management.

🔄 Engulfing Pattern: Power Shift in Action
The Engulfing Candlestick Pattern consists of two candle sticks. A Bullish Engulfing forms when a small red candle is followed by a large green candle that completely “engulfs” it — signaling a momentum shift.

Key Elements :
Two-candle formation
Second candle fully engulfs the first
Indicates strong momentum shift

There’s also the Bearish Engulfing, which happens after an uptrend and signals a possible decline.

Why these patterns are Important
Mastering these candlestick formations gives you a real edge. In fact, many professionals credit their success to consistent pattern recognition and disciplined entry/exit rules — skills that are emphasized in any quality Technical Analysis Course in Dehradun.

📍 Learning Candlestick Patterns in Dehradun
Dehradun has emerged as a hub for financial learning, and if you're looking for the Best Stock Market Institute in Dehradun, MHV Education should be your go to place.

🚀 Final Thoughts
The Hammer, Inverted Hammer, and Engulfing patterns are more than just shapes on a chart — they’re powerful signals that tell a story about market sentiment. Learning to read these signs can drastically improve your trading outcomes.