Learn Candle Patterns

Candlestick patterns are one of the most important tools in technical analysis, used by traders around the world to understand market psychology, predict price movement, and identify buying or selling opportunities. Each candle on the chart tells a story—who is in control (bulls or bears), the strength of the price move, and the potential reversal or continuation of the trend. When combined into patterns, candlesticks offer powerful signals that help traders make better decisions.

A single candlestick is made of four data points: open, high, low, and close. The body represents the open-to-close range, while wicks (shadows) show the highs and lows. Bullish candles generally close above the open, and bearish candles close below the open. Understanding this basic structure is essential before analyzing patterns.

Candlestick patterns are broadly categorized into reversal patterns and continuation patterns. Reversal patterns indicate a potential change in trend, while continuation patterns suggest the existing trend is likely to continue. These patterns can be single-candle, double-candle, or multi-candle formations.