Learn the essential candlestick patterns and how to apply them to stock charts for better trade timing.
Candlestick patterns are a visual language for price action. Key patterns include:
- Bullish and bearish engulfing candles.
- Hammer and hanging man.
- Doji and spinning top.
- Morning star and evening star.
Use these patterns in combination with support and resistance to improve confidence. A bullish engulfing candle at support can signal a reversal, while a shooting star near resistance may warn of weakness.