What are Candlestick Patterns?

Candlestick patterns are specific formations created by one or more candlesticks on a price chart. Each candlestick shows the open, high, low, and close prices for a given time period, and certain combinations of candlesticks can signal potential price movements.

Pattern Types

Single Candlestick

• Doji
• Hammer
• Shooting Star
• Marubozu
• Spinning Top

Multiple Candlestick

• Engulfing patterns
• Harami patterns
• Morning/Evening Star
• Three White Soldiers
• Three Black Crows

Trading Applications

Pattern Analysis

• Trend reversal signals
• Continuation patterns
• Momentum indicators
• Support/resistance confirmation
• Price rejection levels

Implementation

• Pattern confirmation
• Volume correlation
• Time frame alignment
• Market context
• Risk management

Related Terms

• Price Action
• Technical Analysis
• Chart Patterns
• Market Structure