Definition
Candlestick charts show opening, closing, high, and low prices for a period. Patterns formed by one or more candlesticks can signal potential reversals or continuations. Common patterns include doji, hammer, engulfing, and morning/evening star.
Example
A 'hammer' candlestick (small body at top with long lower wick) appearing after a downtrend may signal a bullish reversal.
FAQ
What is Candlestick Patterns?
Visual patterns on price charts used to predict future price movements.
Why is Candlestick Patterns important?
Candlestick Patterns helps investors evaluate technical analysis and make more informed decisions.