Candlestick_and_Pattern_Definition_123456

A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and close prices of a security for a specific period. Each candlestick is composed of a rectangular body and two lines called shadows or wicks.

• Body: Represents the range between the opening and closing prices. If the close price is higher than the open price, the body is typically colored green or white, indicating a bullish period. If the close price is lower than the open price, the body is colored red or black, indicating a bearish period.
• Wicks (Shadows): The lines extending above and below the body represent​⬤

1. Doji A Doji is a candlestick pattern that has an almost equal opening and closing price, indicating indecision in the market.

2. Hammer and Hanging Man A Hammer occurs after a downtrend and is a bullish reversal pattern, while a Hanging Man appears after an uptrend and is a bearish reversal pattern.

3. Inverted Hammer and Shooting Star An Inverted Hammer occurs after a downtrend and suggests a potential reversal to the upside. A Shooting Star occurs after an uptrend and suggests a potential reversal to the downside.

4. Bullish and Bearish Engulfing A Bullish Engulfing pattern occurs when a small red candlestick is followed by a larger green candlestick, indicating a potential bullish reversal. A Bearish Engulfing pattern is the opposite.

5. Morning Star and Evening Star A Morning Star is a bullish reversal pattern formed by three candlesticks: a long red candlestick, a short candlestick, and a long green candlestick. An Evening Star is a bearish reversal pattern with the opposite sequence.

6. Three White Soldiers and Three Black Crows Three White Soldiers is a bullish reversal pattern consisting of three consecutive long green candlesticks. Three Black Crows is a bearish reversal pattern with three consecutive long red candlesticks.

7. Harami A Harami is a two-candlestick pattern where a small candlestick is contained within the range of the previous candlestick, indicating a potential reversal.

8. Piercing Line and Dark Cloud Cover A Piercing Line is a bullish reversal pattern where a long red candlestick is followed by a long green candlestick that opens lower but closes above the midpoint of the red candlestick. Dark Cloud Cover is a bearish reversal pattern with the opposite sequence.

9. Spinning Top A Spinning Top has a small body and long upper and lower shadows, indicating indecision in the market.