Candlestick Patterns Predict Price Movement

HOME I ABOUT I PRICING I FAQ I LEARNING I MY ACCOUNT I CONTACT

What are Candlestick Patterns?

A Candlestick Pattern in financial technical analysis is a technical tool that implements stock price data for an array of time frames into single price bars. These price moves are shown graphically on a Candlestick chart that is intended to help stock traders to identify repetitions in patterns of a particular market movement.

Candlestick Patterns typically represent the price movements of one trading day accordingly typically there are 20 or 21 trading days with 20 or 21 candlestick patterns within one-month period. Candlesticks were proven to provide the most benefits if used on a daily basis. They serve a goal as they help self-taught traders or professional analysts to predict future price movements based on historical price patterns. The identification of the Candlestick Pattern is subjective and the software used for charting has to rely on predetermined rules to match the pattern.

The number of recognized patterns had been subject to increase in the past. As of today there have been 42 Candlestick Patterns that can be split into basic and more complex patterns. Probably the earliest technical trading analysis that deployed candlestick was used to track prices of rice in Japan, and overall in Asia in the 18th century however others claim that candlestick charting arose later around 1850. These patterns are often referred to as Japanese Candlestick Patterns.

Candlestick analysis can be effective and make stock traders consistently profitable if rules of thumb are obeyed and trader waits for the correct buy- and sell signal to be confirmed in line of Candlestick analysis.

Trained investors often use Candlestick analysis as a primary method of determining the market direction, analyzing Candlestick Patterns within 2 to 4-hour intervals. Although some believe that each candle captures an entire trading day's worth of news, price action and data that suggests candles are more useful to longer-term traders, daily candles still provide more accurate predictions versus shorter-term candlesticks. Candlesticks are based on current and past price movements and do not serve as future indicators.

Traditionally Candlestick Patterns are classified as Bearish and Bullish Patterns. Bearish Candlestick Patterns take shape when the close price for a period of a time was lower than the open price. This is prompted to a selling pressure because of pessimist sentiment by the investors.

Conversely, bullish Candlestick Patterns are formed when the close price for a period of a time was higher than the open price. This triggers high- volume buying in wake of optimistic mindset built by positive investor sentiment.

Find below the most typical Japanese Candlestick Patterns.

BULLISH Reversal Candlestick Patterns

» Hammer
» Inverted Hammer
» Morning Star
» Bullish Engulfing
» Piercing
» Three White Soldiers
» White Marubozu
» Bullish Harami
» Three Inside Up
» Three Outside Up
» Tweezer Bottom
» Dragonfly Doji
» Bullish Counterattack Line

BEARISH REVERSAL Candlestick Patterns

» Shooting Star
» Bearish Engulfing
» Hanging Man
» Dark Cloud Cover
» Evening Star
» Black Marubozu
» Three Inside Down
» Three Outside Down
» Bearish Harami
» Tweezer Top
» Three Black Crows
» Gravestone Doji
» Bearish Counterattack Line

BULLISH CONTINUATION Candlestick Patterns

» Rising Three Methods
» Upside Tasuki Gap
» Mat Hold Bullish
» On Neck Bullish
» In Neck Bullish
» Rising Window

BEARISH CONTINUATION Candlestick Patterns

» Falling Three Methods
» Falling Window
» Doji
» Downside Tasuki Gap
» On Neck Bearish
» In Neck Bearish
» Mat Hold Bearish
» Indecision Candlestick Patterns
» Spinning Top
» High Wave

Have you looked into financial worries recently, or you just want to see your income to gain steam? You hold any asset of investment or you've never played with the idea of giving larger leeway to the boost of your financial well-being. Do you know a lot about stock market basics or nope but you are a purpose-driven layperson who can learn steadily to accomplish with a top notch From-Home Career?

Then a long-loved lucrative season gets underway. Join the movement and opt in BNA updates on Real-Time US Company News for the most profitable US Day Trade Stocks that will most likely to break out after market opens. Let us unleash the zesty potential of our unprecedented Stock News Screener System.

14-Day FREE Trial
NO Credit Card Needed

Services	Education	Legal

What we do	FAQ	Privacy Policy
Track Record	Learning Center	Terms & Conditions
Free Trial	About Day Trading	Disclaimer
News Trading	Profitability $$$
Market Snapshot	MY ACCOUNT
Pricing
Company
Contact