Advanced Candlestick Pattern AnalysisTypes of Candlestick Patterns
Candlestick patterns are broadly categorized into:
Single-candle patterns
Double-candle patterns
Triple-candle patterns
Complex multi-candle structures
Candlemodel
Candle Patterns Explained Candlestick patterns are one of the most powerful tools in technical analysis. They help traders understand price movements, market psychology, and potential trend reversals. Each candlestick represents four key data points for a specific time frame: Open, High, Low, and Close (OHLC). The body shows the open and close, while the wicks (shadows) show the high and low. By studying these candles in combinations, traders can forecast upcoming market moves.
1. Bullish Candlestick Patterns
2. Bearish Candlestick Patterns
3. Continuation Candlestick Patterns
Why Candlestick Patterns Matter
Candlestick patterns work because they capture market psychology — fear, greed, indecision, and momentum. When combined with volume, support-resistance, and trend analysis, they become a highly effective decision-making tool for traders.
Explain: Candle PatternWhat is a Candlestick Pattern?
A candlestick pattern represents the price movement of an asset (like a stock) during a specific time frame. It shows open, high, low, and close prices in one candle.
Structure of a Candle
Each candle has:
Body: The range between open and close price.
Wick (or shadow): The lines above and below the body showing high and low prices.
Color: Green (bullish – price up) or Red (bearish – price down).
Part 2 Candle Stick PatternUnderstanding Call and Put Options
There are two basic types of options: Call Options and Put Options.
Call Option:
A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specific price (called the strike price) before a specific date (called the expiry date).
Put Option:
A put option gives the holder the right, but not the obligation, to sell an underlying asset at a specific strike price before expiry.
