Here’s the deal
learning just a few key candlestick patterns WILL improve your ability to recognize trading opportunities
and, enter better trades! The Japanese have been using these patterns for centuries,
to trade rice of all things! so, there is a rich history to the art of candlestick trading.
Candlestick patterns are an integral part of technical analysis, Candlestick patterns emerge because human actions and reactions are patterned and constantly replicate and are captured in the formation of the candles.
So,by recognising how to read candlestick charts and patterns and applying the the lessons that the patterns teach, can and does yield results in your trading!
For the most part Candlestick patterns are about spotting market turns, If you can spot a turn, then you can profit from it. The value of candlestick patterns to spot trading opportunities is a thorny topic among the trading community, but there have been statistical studies on the accuracy of technical analysis and the results are pretty convincing.
I have broken down the patterns into 3 categories:
Equal open and close candles. ( known as doji candles )
Short body candles.
Long body candles.
Within these categories are both bullish reversal and bearish reversal patterns.
When you think you see a familiar candlestick pattern in your charts, You can double check the pattern in this guide and make an informed choice on what to do next.
Here we go! This is how to read candlestick charts and patterns.....