Candlestick Patterns

Candlestick patterns are visual tools used in financial trading to interpret market behavior. Each candlestick shows the opening, closing, high, and low prices within a specific time frame. The shape and color of the candlestick indicate whether prices increased or decreased, helping traders recognize potential trend reversals or continuations. Patterns formed by multiple candlesticks, such as dojis or engulfing patterns, provide insights into market sentiment and potential future movements. They are valuable for making informed trading decisions, offering a clear representation of market dynamics at a glance.