What are candlestick patterns?

Candlestick patterns are a technical trading tool used for centuries to help predict price moments. Each candlestick pattern has a distinct name and a traditional trading strategy. A picture is worth a thousand words, so let’s use a few to shine a light on candlesticks. Let’s look at a single candle pattern named the bullish closing marubozu.

How do you find double candlestick patterns?

You find double candlestick patterns in charts by making trading rules and definitions. For example, a Bullish Engulfing pattern involves spotting a smaller bearish candle that is immediately overtaken by a subsequent larger bullish candle—a signal that may suggest an impending rise.

How many types of candlestick patterns are there?

Below is the list of 35 Types of Candlestick Patterns which is categorised in the above categories: Bullish Reversal candlestick patterns indicate that the ongoing downtrend is going to reverse to an uptrend. Thus, traders should be cautious about their short positions when the bullish reversal candlestick chart patterns are formed.