Candlestick patterns


Important Candlestick Patterns 

Hello friends, how are you all? hope everything is fine. how is your trading journey going? I am Vikas and today I bring you a very important information. 

The candlestick pattern is considered by many traders to be a trend reversal signal. We are going to learn a lot about candlesticks pattern but before that let’s see what exactly a candlestick is.

What is candlestick?

Candle stick is used to show the price chart of a stock in the stock market. The candle stick has been used for decades as the most reliable and convenient Method to show security price. The candlestick chart is of particular importance because it shows the opening price, closing price, and It also shows how low and how high that price hit in perticular time frame.

Candlestick charting is based on a technique developed in Japan in the 1700s for tracking the price of rice. Candlesticks are a suitable technique for trading any liquid financial asset such as stocks, foreign exchange and futures.

When a stock price of any security/stock moving up and down, some candlestick patterns are formed in the chart and those patterns are considered very important. That Candlestick patterns can cause price trends to change from uptrend to downtrend.

What is Candlestick pattern?

Reversal patterns trading mean the conformation of candlesticks which indicate the end of the being trend (uptrend or downtrend). When similar conformation appears in a downtrend, it indicates a bullish reversal or end of dealing spree and onset of buying spell. Again, when a trend reversal pattern forms in an uptrend, it warns dealers of a possible end to bullish run and onset of a depression. reversal patterns stocks very preferred by people. Also reversal patterns work in forex and crypto currency market.

Candlestick patterns are visual patterns, helping dealers to fantasize when request sentiment is shifting, which is why numerous dealers prefer candlestick maps over other trading tools. Still, any trend reversal suggestion must conform with other popular specialized trading tools. 

Some of Important candlestick pattern

Some important candlestick patterns are formed from one candle or two candles or three candles. There are some bullish candlestick patterns and some bearish candlestick patterns.

  • Hammer
  • Shooting star,
  • Doji, dragon fly doji, 
  • gravestone doji,
  • Bearish Engulfing pattern
  • Bullish engulfing pattern,
  • Bullish harami Pattern
  • Bearish harami pattern.
  • Piercing line pattern,
  • Abondoned Baby.
  • Three white soldier
  • three black crow.
  • Bullish Harami pattern
  • Bearish Harami pattern
  • Morning Star pattern.
  • Evening star pattern.

In the above list which you have read now, there are six to seven types of candle stick pattern, we will see separately in each blog. As we discuss the patterns we will also see examples of it so that you can better understand it.

So this is the end of our blog for today. Hope you find this information informative and useful for you. If so, let us know by comment and keep the reading our blog.

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