NEPSE Candlestick Pattern Trainer & Quiz

Learn and master the 8 high-probability candlestick reversal setups taught in RiseLaxmi Masterclass Module 3.

Interactive Drill #1 of 6Score: 0 / 6

Pattern: Bullish Hammer

"Forms at the bottom of a downtrend with a long lower shadow at least 2x the body, showing that sellers drove prices sharply down but aggressive institutional buyers took control before close."

What is the expected market directional bias of this candlestick setup?

NEPSE Candlestick Encyclopedia (Module 3 Reference)

Bullish Hammer

BULLISH

Forms at the bottom of a downtrend with a long lower shadow at least 2x the body, showing that sellers drove prices sharply down but aggressive institutional buyers took control before close.

─┬─ [Body] │ │ (Long lower wick 2x body) ─┴─

Stop Loss: Place SL 2-3 ticks below the lowest wick of the Hammer.

Bearish Shooting Star

BEARISH

Appears after an advance. Prices surge higher during the morning session but crash down before market close, leaving a long upper shadow.

─┬─ │ (Long upper wick 2x body) │ ─┴─ [Body]

Stop Loss: Place SL immediately above the highest wick peak.

Bullish Engulfing

BULLISH

A two-candle reversal pattern where a small bearish candle is completely engulfed by a large bullish green candle.

[Red] [ GREEN ] ─┬─ [ CANDLE ] ─┴─ [ ENGULFS ] [ PREV ]

Stop Loss: Below the lowest price of the engulfing green candle.

Bearish Engulfing

BEARISH

A small green candle is completely overtaken and engulfed by a massive red candle, signaling that buyers are trapped.

[ RED ] [Green][ CANDLE ] ─┬─ [ ENGULFS ] ─┴─ [ PREV ]

Stop Loss: 1-2 points above the high of the red engulfing candle.

Morning Star

BULLISH

Composed of a large red candle, a small-bodied star/doji candle, and a strong green candle closing deep within the first candle body.

[Red] * [Green] Day1 Day2 Day3

Stop Loss: Below the lowest point of the central star candle.

Dragonfly Doji

BULLISH

Open, high, and close are virtually equal, leaving a very long lower shadow like the letter T.

─── [Open/High/Close equal] │ │ │ (Extreme rejection)

Stop Loss: Below the bottom of the lower tail.