Candlestick Patterns Every Trader Must Know
Candlestick patterns are one of the most powerful tools in a trader’s arsenal. Originating from Japanese rice traders in the 18th century, these visual price movement indicators help traders understand market sentiment and make more informed decisions. Whether you're a beginner or a seasoned trader, mastering key candlestick patterns can significantly enhance your trading strategy. What Are Candlestick Patterns? Candlestick charts display price movements of a security over a specific time period. Each candlestick provides four key pieces of information: Open price Close price High price Low price The body of the candle represents the range between the open and close prices, while the wicks (also known as shadows) show the highs and lows. Patterns formed by one or more candlesticks can indicate potential reversals, continuations, or periods of indecision in the market. Top Candlestick Patterns Every Trader Should Know 1. Doji A Doji forms when the open...