What is a candlestick pattern?

In financial technical analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern.

What is a Morning Star candlestick pattern?

There is usually a significant gap down between the first candlestick’s closing price, and the green candlestick’s opening. It indicates a strong buying pressure, as the price is pushed up to or above the mid-price of the previous day. The morning star candlestick pattern is considered a sign of hope in a bleak market downtrend.

What makes candlesticks so attractive as a charting tool?

But what happens between the open and the close, and the battle between buyers and sellers, is what makes candlesticks so attractive as a charting tool. Candlestick patterns are technical trading tools that have been used for centuries to predict price direction.

Can you trade without candlestick patterns?

Written by: John McDowell Trading without candlestick patterns is a lot like flying in the night with no visibility. Sure, it is doable, but it requires special training and expertise. To that end, we’ll be covering the fundamentals of candlestick charting in this tutorial.