Candlestick patterns are technical trading tools that have been used for centuries to predict price direction.
There are dozens of different candlestick patterns with intuitive, descriptive names; most also have a corollary pattern between the upside and downside. For instance, an “abandoned baby top” has its corollary in an “abandoned baby bottom;” “tweezer bottoms” have their upside corollary in “tweezer tops.”
Traders supplement candlestick patterns with additional technical indicators to refine their trading strategy (e.g., entry, exit).
Candlesticks are based on current and past price movements and are not future indicators.
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Anil Kumar Simba
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