Candlestick charts are a technical tool that pack data for multiple timeframes into single price bars. Candlesticks build patterns that predict price direction once completed. Instead, we will focus on specific reversal signals that we believe have intuitive value as it relates to market sentiment. Candlestick patterns are a form of technical analysis and charting used in the stock market, forex market and all other markets. Forex candlesticks trading 3 line they can be used in all time frames, from those looking for long term investments to those who use swing trading or day trading, The power of candlesticks (also called Japanese candlestick charts) is that they excel at giving market turning points and when used properly can potentially decrease market risk exposure.
You may have of some common candlestick chart patterns or candlestick terms like bullish engulfing pattern, doji pattern, dark cloud cover pattern, hammer pattern and shooting star pattern. This section discusses only a few of the scores of candlestick chart patterns. There are many important candlestick patterns and trading tactics not discussed in this basic introduction.