Candlestick patterns are a charting method

Candlestick patterns are a charting method that is used in forex trading to detect probable market trends and reversals. The patterns are produced by the price activity of the currency pair being traded, and they can give useful information about market mood.



There are several candlestick patterns, each with their own distinct qualities and meanings. Some of the most popular patterns are as follows:

1- Bullish/Bearish Engulfing Pattern:

Bullish/Bearish Engulfing Pattern: When a little candlestick is totally absorbed by a larger candlestick, this pattern develops. A bullish engulfing pattern implies that buyers have seized control of the market, whilst a bearish engulfing pattern indicates that sellers have taken control of the market.




2- Doji: 

Doji: A doji happens when a candlestick's open and close prices are the same, resulting in a tiny or non-existent body. This pattern indicates that the market is undecided and that a reversal is possible.

3- Shooting Star/ Hammer

When a tiny candlestick has a long wick and a small body, these patterns appear. A hammer pattern denotes a bullish reversal, whereas a shooting star pattern suggests a bearish reversal.




4- Evening/Morning Star: 

Evening/Morning Star: These patterns appear over three candlesticks and are a strong indicator of a market turnaround. An evening star pattern is made up of a huge bullish candlestick, a little undecided candlestick, and a massive bearish candlestick. A morning star pattern is the inverse, and it consists of a huge bearish candlestick, a little undecided candlestick, and finally a massive bullish candlestick.


While candlestick patterns can be beneficial in forex trading, they should not be depended on alone. Other technical analysis methods should be used, as well as fundamental issues that may effect the market.