What are the different types of candlestick patterns?

There are both bullish and bearish candlestick patterns, and in this post, we go through both types and how you can use them. Most traders use candlestick patterns as entry signals. You can, however, also use them to manage your open trades, including using them for take-profit targets and stop-loss points.

How do you use candlestick patterns?

The candlesticks are used to identify trading patterns that help technical analyst set up their trades. These candlestick patterns are used for predicting the future direction of the price movements. The candlestick patterns are formed by grouping two or more candlesticks in a certain way.

What are some bullish reversal candlestick patterns?

Below are the different types of bullish reversal candlestick patterns: 1. Hammer: Hammer is a single candlestick pattern that is formed at the end of a downtrend and signals a bullish reversal. The real body of this candle is small and is located at the top with a lower shadow which should be more than twice the real body.