Candlesticks....

Candlestick patterns are a form of technical analysis used by traders to determine potential market trends and changes in price direction. They are formed by a series of candlesticks on a price chart that display the open, high, low, and close prices for a specific time period, such as a day or a week.


Each candlestick represents a trading session or period, and its shape and color provide valuable information about the market sentiment and the balance between buyers and sellers. There are two main types of candlesticks: bullish and bearish.

Bullish candlesticks typically have a white or green body, indicating that the closing price is higher than the opening price. Bearish candlesticks, on the other hand, typically have a black or red body, indicating that the closing price is lower than the opening price.



 






Candlestick patterns can be used to identify potential reversals, continuations, and indecision in the market. Some common candlestick patterns include the doji, hammer, shooting star, engulfing, and hanging man. Each pattern has its own characteristics and implications for the market.

Traders use candlestick patterns in conjunction with other technical analysis tools and indicators to make informed trading decisions. It's important to remember that no single candlestick pattern is foolproof, and traders should always consider the overall market context and other factors before making any trades.

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