A candlestick pattern is a visual representation of price movements in financial markets, used in technical analysis to identify potential buy and sell signals. Each candlestick on a price chart represents a single period of time, such as one day, and includes information about the opening, closing, high, and low prices for that period.


Candlestick patterns are formed by combining one or more candlesticks in a specific way, and are used to identify potential trends and reversals in the market. Some common candlestick patterns include:


Doji: a pattern that has a small or non-existent body, with wicks that are roughly equal in length. This pattern suggests indecision in the market, and can signal a potential reversal.


Hammer: a bullish pattern that has a small body and a long lower wick. This pattern suggests that buyers have stepped in to push prices up after a period of selling pressure.


Shooting Star: a bearish pattern that has a small body and a long upper wick. This pattern suggests that sellers have stepped in to push prices down after a period of buying pressure.


Engulfing: a pattern where a larger candle completely engulfs the body of the previous candle. A bullish engulfing pattern can signal a potential reversal from a downtrend, while a bearish engulfing pattern can signal a potential reversal from an uptrend.


Morning Star: a bullish pattern that occurs after a period of downward price movement. It consists of three candles: a bearish candle, a small doji or spinning top, and a bullish candle. This pattern suggests a potential reversal in the market.


Evening Star: a bearish pattern that occurs after a period of upward price movement. It consists of three candles: a bullish candle, a small doji or spinning top, and a bearish candle. This pattern suggests a potential reversal in the market.


Candlestick patterns can be a useful tool in technical analysis, but they should always be used in conjunction with other indicators and analysis methods to make informed trading decisions.