CANDLESTICK PATTERNSCandlesticks originated in Japan over 300 years ago. They show four key pieces of information:
Open
High
Low
Close
Candlestick patterns help traders understand short-term price action, momentum, and market psychology.
Candle patterns fall into:
1. Bullish Patterns
2. Bearish Patterns
3. Indecision Patterns
4 .Continuation Patterns
Candleadvisor
Candle Patterns in Technical AnalysisHow Candlesticks Work
Every candlestick has four major components:
Open: Price at the beginning of the period
Close: Price at the end of the period
High: Highest price reached
Low: Lowest price reached
If the closing price is higher than the opening price, the candle is bullish. If the closing price is lower, the candle is bearish.
The body and shadows (wicks) of the candle provide vital information:
A long body shows strong momentum.
A small body shows indecision.
Long wicks show rejection from higher or lower levels.
No wicks signal strong directional control by either bulls or bears.
Based on these characteristics, candle patterns are broadly divided into reversal patterns, continuation patterns, and indecision patterns.
Candle Patterns How to Use Candle Patterns in Trading
Candlestick patterns alone are not enough. Combine them with:
Support & Resistance
Volume Profile
Market Structure
Trendline & Channels
Moving Averages
RSI / MACD
A candle pattern at a strong support zone is more reliable than a pattern in the middle of nowhere.


