84 Candle Rule: What It Is and How Traders Use It in India

When traders talk about the 84 candle rule, a technical analysis pattern based on 84 consecutive candlesticks to identify potential trend reversals, they’re not talking about luck—they’re talking about patterns. This rule isn’t a magic formula, but a way to filter out noise in the market by focusing on price behavior over a specific time frame—usually 84 days or periods, depending on your chart setting. It’s used mostly in stock and commodity trading across India, where traders watch for shifts in momentum after a long run-up or run-down. You’ll see it applied in markets like Nifty, Bank Nifty, and even in gold and crude oil trading on Indian exchanges.

The candlestick chart, a visual tool showing open, high, low, and close prices over a set period is the backbone of this rule. Each candle tells a story: a long black candle means sellers dominated, a long green one means buyers took control. The 84 candle rule looks for a cluster of these candles—often after a strong trend—to spot when the energy is fading. For example, if the market has been rising for 84 candles and then starts forming small-bodied candles with long wicks, that’s a signal traders watch closely. It’s not a buy or sell signal by itself, but a flag that says: pay attention. This is where technical analysis, the practice of using historical price and volume data to predict future market movements becomes practical, not theoretical. Indian retail traders, especially those active in intraday or swing trading, use this rule alongside support/resistance levels and volume spikes to make faster, more confident decisions.

You won’t find this rule in textbooks from big Wall Street firms, but you’ll find it in WhatsApp groups of Mumbai traders, on YouTube channels focused on Indian markets, and in the daily charts of people trading from small towns with laptops and internet connections. It’s a grassroots strategy born from real-world experience, not academic theory. What you’ll find in the posts below are real examples: how someone used the 84 candle rule to exit a position before a crash, how it failed during a sudden policy change, and how it works—or doesn’t—when combined with other tools like RSI or moving averages. Some posts dig into the psychology behind why traders stick to it, others show you exactly how to set up your chart in TradingView. No fluff. No hype. Just what works, what doesn’t, and why it matters when your money is on the line.