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.