A Simple Introduction to the 6 Most Famous Candlestick Patterns that You Can Learn in 1 Minutes

Candlestick patterns are a visual representation of price movements in financial markets. They are formed by a series of individual candlesticks, each of which provides information about the price action over a specific time period.

There are many different candlestick patterns, each with its own unique characteristics and interpretation. 

• 1. Doji: A doji is a candlestick with a small body and long wicks, indicating that the opening and closing price were very close. 
• 2. Hammer: A hammer is a candlestick with a small body and a long lower wick, indicating that the price fell significantly during the trading period but then recovered. 
• 3. Shooting Star: A shooting star is a candlestick with a small body and a long upper wick, indicating that the price rose significantly during the trading period but then fell back down. 
• 4. Engulfing: An engulfing pattern occurs when a larger candlestick completely engulfs the previous smaller candlestick. This pattern suggests a potential reversal in the direction of the larger candlestick.
• 5. Morning Star: A morning star pattern occurs when a long bearish candlestick is followed by a small candlestick that gaps down, and then a long bullish candlestick. 
• 6. Evening Star: An evening star pattern occurs when a long bullish candlestick is followed by a small candlestick that gaps up, and then a long bearish candlestick. 

These are just a few examples of the many candlestick patterns that traders use to analyze price movements in financial markets. It is important to note that no single pattern can provide a definitive signal of market direction, and traders often use multiple patterns and indicators to inform their trading decisions.